Negotiable Instruments Act 1881 - Liability of Drawer for Cheque Issued as Security and Dishonour Due to Account Blocked – High Court of Himachal Pradesh

Background of the Case The present case involves the accused, Mr. Ramesh Kumar, who had issued a cheque of ₹2,50,000/- to the complainant, Mr. Suresh Sharma, as security against an advance payment of ₹2,30,000/-. The cheque was dishonoured with an endorsement ‘account blocked’, and the complainant filed a complaint under Section 138 of the Negotiable Instruments Act, 1881. The trial court found that the accused had failed to discharge his…