Sec 138 of Negotiable Instruments Act and Cheque Bounce : Can Blocked Accounts Impact The Proceedings ?

Sec 138 of Negotiable Instruments Act and Cheque Bounce : Can Blocked Accounts Impact The Proceedings ?

The point that emerged from Ceasefire Pvt Ltd v. State [2017] GCtR 6316 (Delhi), it was held that the provision contained in Section 138 of the Negotiable Instruments Act, 1881 makes it clear that it is not every return of a cheque unpaid which leads to prosecution of an offence under the said provision of law. So, when account was blocked and cheque gets dishonoured, then proceedings under S.138 would not lie.