once agreement between parties provided for which monies due and payable - Cheque furnished as 'security' is covered under provisions of S.138 of NI Act.

Citation

AIR 2022 SUPREME COURT 147

SUPREME COURT

: AIROnline 2021 SC 1120 (From : Gujarat)

DR . DHANANJAYA Y. CHANDRACHUD , J. and A. S. BOPANNA , J.

Criminal Appeal No. 1446 of 2021 with 1447 of 2021, D/- 3 - 12 - 2021

Sunil Todi and Ors. v. State of Gujarat and Anr.

(A)Negotiable Instruments Act (26 of 1881), S.138 - Dishonour of cheque - Legally enforceable

debt - Merely labelling cheque as security would not obviate its character as instrument designed

to meet legally enforceable debt or liability, once agreement between parties provided for which

monies due and payable - Cheque furnished as 'security' is covered under provisions of S.138

of NI Act.