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Suresh Chandra Goyal vs Amit Singhal on 14 May, 2015

15.The defence of the accused is that the cheque in question was given as security to the complainant. A security in common parlance would suggest an assurance or safety. Security means "anything that makes the money more assured in its payment or more readily recoverable and may range from a mere personal bond or promissory note or guarantee, or even a mere pledge of something of no intrinsic value, to a mortgage of property from out of which money can be realised1". A security does not suggest a non-committal attitude but has a positive overtone of faith and sureness of payment. Similar defences taken by an accused in cases of complaints under Section 138 of the N.I. Act that the cheque was given as a security cheque is a misunderstood defence. In such cases, the accused has to show that at the time the cheque in question was issued/delivered to the complainant or presented for encashment, it was not in discharge of an existing debt or liability. This defence which is generally taken in cases filed under Section 138 of the N.I. Act has been explained in decisions of various High Courts. Reference in this regard is being made to two recent decisions of the Hon'ble High of Delhi in Suresh Chandra Goyal v. Amit Singhal., Crl A. No. 601 of 2015 decided on 14.05.2015 and Credential Leasing & Credits Ltd., v. Shruti Investments & Ors., Crl. L.P. No. 558 of 2014 decided on 29.06.2015.
Delhi High Court Cites 39 - Cited by 712 - V Sanghi - Full Document
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