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Suresh Chandra Goyal vs Amit Singhal on 14 May, 2015

20. Further, accused has stated that cheque in question was given as a RAM SINGH MEENA VS JEET RAM MEENA CC NO.20607-19 Page no.9 of 14 security cheque. Before, evaluating the claim of the accused let us understand the position with regard to the security cheque as settled by Hon'ble Delhi High Court in Suresh Chand Goyal vs Amit Sighal; "The contention that the cheque was issued only as security is preposterous. The cheque whether issued for payment of debt or as security makes no distinction in law. The cheque is a negotiable instrument, it may be that sometimes the cheque is issued with a request on the part of the drawer to defer the presentation of the cheque for some time to enable the drawer to make payment by cash and take back the cheque or allow time to arrange funds for encashment of cheque. When the amount is not paid as per oral understanding the payee is well justified to present the cheque for encashment. The cheque even if it is issued as a security for payment, it is negotiable instrument and encashable security at the hands of payee. Therefore, merely because the drawer contends that it is issued as security is not a ground to exonerate the penal liability under Sec.138 of the NI Act". Therefore, the defence of the accused that cheque in question was issued as security cheque has no force.
Delhi High Court Cites 39 - Cited by 712 - V Sanghi - Full Document

Rohitbhai J Patel vs The State Of Gujarat on 15 March, 2019

In view of law laid down by Hon'ble Apex Court in Rohitbhai J Patel vs The State Of Gujarat, criminal appeal no. 508/19 wherein it has been categorically held that the complainant need not prove the source of funds which were subsequently used for advancement of loan till the time accused has discharged his burden. In the present case accused has failed to discharge his initial burden of proof.
Supreme Court of India Cites 16 - Cited by 93 - D Maheshwari - Full Document
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