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Showing contexts for: cheque outdated in Gajanan Fabrics vs Love Stich Apparell on 11 March, 2026Matching Fragments
minimal variation arising out of inter-bank clearing processes cannot be attributed to the complainant. Such technical objections cannot be permitted to defeat the substantive object of Section 138 of the Negotiable Instruments Act, which is to enhance the credibility of commercial transactions and ensure promptitude in financial dealings.
57. Significantly, the cheque was not dishonoured on the ground of being stale. The return memo does not record "stale cheque" or "outdated instrument" as the reason for dishonour. On the contrary, the dishonour was for reasons attributable to the drawer, thereby clearly indicating that the cheque was treated as valid by the banking system at the time of presentation. In these circumstances, the contention raised by the accused is found to be meritless and is accordingly rejected.