Cheque Bounce u/s 138Dishonour of Security Cheque Issued For Discharge Of A Debt Or Other Liability

March 23, 20160

Dishonour of Security Cheque Issued For Discharge Of A Debt Or Other Liability under Sections 138, 139 and 118(a) of Negotiable Instruments Act, 1881 will result into Conviction .

Supreme Court upheld the  Conviction of guarantor and/or surety who had issued cheques as security for payment of amount due by principal debtor, as principal debtor had defaulted .

[Don Ayengia v. State of Assam, (2016) 3 SCC 1]

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