Case Law Analysis
|Madhya Pradesh High Court
Section 138 NI Act | Security Cheque for Third-Party Liability Without Legally Enforceable Debt Not an Offence: MP HC Gwalior
MP High Court rules that a cheque issued as security for a third party's liability, without a legally enforceable debt against the accused, does not constitute an offence under Section 138 of the Negotiable Instruments Act. The judgment clarifies that mere issuance of a security cheque, absent compliance with statutory conditions, cannot sustain criminal proceedings.