further submitted by the accused that a condition for furnishing
collateral security was imposed by him before granting of the loan to the
complainant ... complainant failed to give collateral security for the first
time and the loan cheque which he had earlier given to the complainant was
returned back
accused, who issued 7 post dated cheques as collateral
security and it was observed by Hon'ble Gujarat High Court that
no offence ... clear from this averments that the
cheques were issued as the collateral security for the due
performance (vernacular matter omitted.) of the contract, by which
rights to utilise the provided
securities/shares, which can be used as collateral for his own margin
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and utilized the subject shares as a collateral. They claim that due to non-
payment of the loan amount
argued that while extending the financial assistance,
NAFED had sought for a collateral security and accordingly one property situ-
ated at Meerut was offered ... considered
by NAFED and NAFED issued NOC for disposal of such collateral security
vide letter dated 19.11.2005. Accused were also able to find
without any consideration. He further
stated that complainant assured him to give collateral security in lieu of proposed
financial assistance but no such collateral security ... which the complainant was supposed to give collateral security to the
accused and same was not given to him.
20. In order to prove
without any consideration. He further stated that
complainant assured him to give collateral security in lieu of proposed financial
assistance but no such collateral security ... which the complainant was supposed to give collateral
security to the accused and same was not given to him.
20. In order to prove
case under Order 37;
(ii) The cheques issued were a mere collateral security or
"comfort" and did not amount to a negotiable instrument ... next contended by the Defendant that the cheques were merely
a collateral security for repayment of the loan. The defence is merely illusory.
5 Company
cheque. When Ex.A1 cheque was not issued as a collateral security for the loan, there cannot be said to be debt or subsisting ... cheque is proved to have been issued as a collateral security for the loan transaction, it cannot be said that Ex.A1 cheque
High Court held that if
the post dated cheques are issued as collateral security for due
performance of the contract then on its dishonour ... loan. So the post dated
cheques given earlier were mere a collateral security without any debt
or liability, so on the basis of dishonour
High Court held that if
the post dated cheques are issued as collateral security for due
performance of the contract then on its dishonour ... Pardeep Kumar Khanna Page13/16
cheques given earlier were mere a collateral security without any debt
or liability, so on the basis of dishonour
