Post-Dated Cheques Issued as Security Can Attract Section 138 of NI Act Once Liability Crystallizes: Delhi High Court
The Delhi High Court has ruled that Post-Dated Cheques (PDCs) issued as security for financial transactions can attract Section 138 of the Negotiable Instruments Act, 1881, if they are dishonoured after the underlying liability becomes due. The decision was delivered by Justice Neena Bansal Krishna in a petition seeking to quash a complaint filed under Section 138 or to set aside the Summoning Order. Legal Principle On Security Cheques The…
