14th august

when the cheques were not issued in discharge of any „debt‟ or „liability‟ but were issued as interest free security deposits and so the provisions of section 138 of the Act were not applicable.?=“With regard to the point in relation to security, I am of the view that whether the cheque was given as security or towards discharge of liability is a question to be decided by the Trial Court during the course Crl.M.C. 1136/2011 Page 8 of 8 of trial. Therefore, the point regarding issuance of cheque as security cannot be urged at this stage before this Court.” 12. From all these prima facie it is established that the dishonoured cheques were issued towards the discharge of a liability notwithstanding the fact that the money was by way of security deposit for the due performance of the terms of the agreement and was refundable at the time of vacation of the premises

Crl.M.C. 1136/2011 Page 1 of 8 * THE HIGH COURT OF DELHI AT NEW DELHI + CRL.M.C. 1136/2011 Reserved on: 14.12.2011 Pronounced on: 11.01.2012 DEEPAK VIG ….. Petitioner Through: Mr. Harish Malhotra, Senior Advocate with Mr. V.L. Madan and Mr. K.K. Madan, Advocates versus AVDESH MITTAL ….. Respondent Through: Mr. Ashish Middha and Mr.Y.R. Yadav, … Continue reading →