Defences available to the Accused in a Cheque Bounce Cases
The accused cannot be prosecuted under section 138 of Negotiable Instruments Act of 1881.Usually; the plea in most cheque dishonor cases is that the cheque in question was issued as a security cheque.
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The Plea of Security Cheque: If the cheques admitted were only for security and not for prompt repayment then it makes it amply clear that it was not lieu for discharging any liability or debt. The accused cannot be prosecuted under section 138 of Negotiable Instruments Act of 1881.Usually; the plea in most cheque dishonor cases is that the cheque in question was issued as a security cheque. “Security cheque” does not per se extricate the liability of the accused as the term has not been clearly mentioned under the exceptions of dishonor of cheques.
