Cheque Dishonour under Negotiable Instruments Act, 1881 and Role of Security Cheque

Cheque Dishonour under Negotiable Instruments Act, 1881 and Role of Security Cheque

S.138 (1) of Negotiable Instruments Act, 1881 uses the phrase "any debt or other liability". Proviso (a) to S.138 (1) fixes a time-limit of 6 months for presenting the cheque.  In the case of Innoventive Industries Ltd v. GNCTD [2025] GCtR 1628 (Delhi), it was held that in this case the "contention of S.138 NI Act not attracted in respect of Security Cheques in the facts of present case, is absolutely not tenable."

S.20 deals with blank papers and this section confers prima facie authority to the holder.  S.20 of NI Act holds the drawer responsible if subsequently the Blank cheque given by the Drawer is used by the drawee to whom it was given, and he cannot per se deny his liability in respect of such cheque.