SECURITY CHEQUE DOES NOT ATTRACT 138

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An important judgment of the Bombay High Court holding that a cheque issued as security at the time of grant of loan does not attract the provisions of S.138 of NI ACT. Thus despite the existence of debt or liability, if a cheque issued with reference to or in relation to such a debt or liability is dishonoured provisions of S.138 is not attracted. #pdf

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