Section 138 NI Act Inapplicable When Cheque Does Not Reflect Reduced Liability After Part Payments: Kerala High Court

The Kerala High Court delivered an important judgment clarifying the legal requirement under cheque bounce cases. The Court held that if part payments are made before presenting a cheque, and those payments are not adjusted, the cheque amount cannot be treated as a legally enforceable debt under Section 138 Negotiable Instruments Act, 1881. Background of the Case The case arose from a complaint filed by Danikutti Philip against Johnykutty J…