Exemption in cheque bounce case as cheque not signed by account holder

I was working as an agent for a Co of sonipat they had taken one cheque of axis bank as security amount not written only name of the Co written by me and signed by me. I always made their payment depositing chq In my local city in GUJARAT I had never made payment by giving them chq for depositing in sonipat. There was a accounts dispute N they deposited my axis bank chq by writing the amount. I. E AMOUNT Was not written by. Me and the chq got bounced. Now the company has filed a case against me us 138 NI ACT. CAN ANYBODY GIVE ME SOME JUDGEMENT FAVOURING THE CHQ ISSUER MENTIONING THE DIFFERENCE OF SIGNATURE. PL INTIMATEE AT THE EARLIEST. THANKS

Answers (1)

188 votes

In the case of Vinita S. Rao v. Essen Corporate Services (P) Ltd., (2015) 1 SCC 527, the Supreme Court remitted the case back to the High Court by setting aside its order, inter alia, on the ground that the cheques which were dishonoured were issued as a security and that there was no crystallised liability or outstanding dues.

Thus, it is clear that no offence under section 138 of the Negotiable Instruments Act will be made out if the cheque that has been dishonoured was issued only as a security and not for discharge of any debt or liability.

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