Cheque issued pursuant to settlement agreement presumed to be for discharge of debt: Supreme Court

The Court set aside a judgment of the Madras High Court which had quashed a Section 138 criminal complaint on the ground that the cheques could not be deemed to be issued for discharge of a debt or liability.
Cheque issued pursuant to settlement agreement presumed to be for discharge of debt: Supreme Court
Cheque Bouncing

The Supreme Court has held that a cheque issued pursuant to a deed of settlement between parties will be presumed to have been issued towards discharge of a debt or liability under Section 138 of the Negotiable Instruments Act (NI Act), which fastens criminal liability in cheque bounce cases (M/s Gimpex Private Limited v. Manoj Goel).

Want to read the full story?

We’re glad you’re enjoying this story. Subscribe to any of our plans to continue reading the story.

Already have an account? Sign In

Related Stories

No stories found.