Cheques Issued Solely for Security Purpose Not Enforceable for Any Existing Debt: Delhi High Court
The Delhi High Court has held that cheques issued only as security and not meant for actual deposit in the bank cannot be considered as instruments for payment of any existing debt or liability. Justice Neena Bansal Krishna observed that such cheques, given for a specific purpose, cannot be used for encashment towards liabilities that arise subsequently. Case Background The ruling came in a series of five petitions filed by…
