Cheque bounce case -- Cheques presented before agreed date – Held, at the time of presentation of cheque before bank, there was no legally enforcement debtor liability – Complainant had received certain amounts, which has not been mentioned in his complainant and what is balance – Offence u/s 138 is not made out.

(P&H HC) Decided on: 25.01.2019

Cheque bounce case – Filling of cheque by drawee – Negotiable Instruments Act raises a presumption u/s 118 that a negotiable instrument is presumed to be fully supported by consideration -- If a cheque is issued as security or with an authority given to the drawee that it could be filled up or used for certain claims which are later ascertained, it is still a valid instrument as per Section 20 of the Negotiable Instruments Act which states that document which is inchoate with authority granted to the drawee to fill up the recitals, the document would become the full-fledged enforceable negotiable instrument, the moment the recitals were filled up by the drawee of the negotiable instrument.

(P&H HC) Decided on: 30.03.2016