Security Cheque, Variation in Ink and Liability under S.138 of Negotiable Instruments Act, 1881
In case of Gian Chand Singal v. Puneet Gautam [2026] GCtR 225 (HP) it was held that a cheque issued as security is not waste paper and a complaint under section 138 of the Negotiable Instruments Act, 1881 can be filed on its dishonour.
It was argued by accused that the signatures on the cheque and the body of the cheque are in different inks, which shows that the cheque was filled in by the complainant.
It was held a person is liable for the commission of an offence punishable under Section 138 of the Negotiable Instruments Act even if the cheque is filled by some other person.
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