Web Analytics
Register Login Subscribe
Resources
A-List lawyers Law firm directory
Law.asia home
Archive
.TV
Events
Jobs
About us
Contact us
Follow Law.asia
Our publications:
  • ABLJ
  • CBLJ
  • IBLJ
  • Menu
    • Sections
      • Business law digest
      • Deal digest
      • Dispute digest
      • Expert briefing
      • Features
      • Inbox
      • Intelligence report
      • Leader
      • Market pulse
      • Obituary
      • Practitioner’s Perspective
      • Spotlight
      • The Briefing
      • Vantage point
      • What’s the deal?
    • Correspondents
  • Archive
  • .tv
  • Events
    • Our events
      • CBLJ Forum · Shanghai 2019
      • CBLJ Forum Beijing 2019
    • Other events
  • JOBS
  • Subscribe
  • icon
    • Login
    • Register
Our publications
  • ABLJ
  • CBLJ
  • IBLJ
Home SNG & Partners Dishonour of post-dated cheques taken as security
  • SNG & Partners

Dishonour of post-dated cheques taken as security

By Amit Aggarwal and Rahul Sud, SNG & Partners
26 February 2017
0
3500

Using a post-dated cheque (PDC) as a security for repayment of a loan is a common practice among lenders and financial institutions. An unresolved question is whether issuing a PDC for the satisfaction of debt and issuing a PDC as a security have similar or a different meaning under section 138 of the Negotiable Instruments Act, 1881, for the purposes of prosecution.

Amit Aggarwal Partner SNG & Partners
Amit Aggarwal
Partner
SNG & Partners

In the case of Sampelly Satyanarayana Rao v Indian Renewable Energy Development Agency Limited the Supreme Court recently considered whether the dishonour of a cheque, which was issued after a loan was advanced, was covered by section 138. The court held that if on the date of the cheque, the liability or debt exists or the amount has become legally recoverable, section 138 is attracted and not otherwise. The court further explained that whether a PDC is for the discharge of a debt/liability depends on the transaction.

The litmus test applied by the court was whether the PDC is for the discharge of an existing enforceable debt/liability or whether it represents advance payment without there being a subsisting debt/liability. The court held that the repayment becomes due under the agreement the moment the loan is advanced and the instalment falls due. Therefore, if a PDC is issued after the loan is advanced, it would attract section 138, as it would satisfy the criteria of existing debt at the time of issuance of the cheque.

You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.

For group subscribers, please click here to access.
Interested in group subscription? Please contact us.

你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章,欢迎成为我们的订阅会员成为我们的订阅会员。

已有集团订阅,可点击此处继续浏览。
如对集团订阅感兴趣,请联络我们。

Username:
Password:
Lost your password?

SNG & Partners has offices in Delhi, Mumbai, Singapore and Doha. Amit Aggarwal is a partner and Rahul Sud is an associate partner.

SNG & Partners

One Bazaar Lane, Bengali Market

New Delhi – 110001
India

Contact details:

Tel: +91 11 4358 2000

Fax: +91 11 4358 2033

Email: info@sngpartners.in

Website: www.sngpartners.in

  • TAGS
  • Amit Aggarwal
  • Banking
  • Finance & Restructuring
  • Post-dated cheque
  • Rahul Sud
  • SNG & Partners
Previous articleEase of doing business: myth or battle cry?
Next articleTop tips for US companies doing business in India
Windy

RELATED ARTICLESMORE FROM AUTHOR

india digital currency
SNG & Partners

Cashing in on a digital currency

By Devyani Dhawan and Neha Pethe, SNG & Partners.
India supreme court giving tax authorities secured creditors
SNG & Partners

Making states secured creditors weakens IBC

By Saroj Pandey and Rachit Munjal, SNG & Partners
Market pulse

SNG rewards Gupta and Aggarwal with promotions

Most Popular

The business of billing

As clients get savvier, law firms face pressure to lower their fees

21 December 2022

The A-List 2022-23

The leading lawyers and icons most recommended by clients

19 January 2023
Lalit Bhasin interviewvideo

Man on a mission

Lalit Bhasin talks to IBLJ about completing 60 years in law, leading many associations, retirement and more

27 February 2023

In-house Counsel Awards 2022

IBLJ recognises the most commended general counsel, their in-house teams and the splendid work done by them

14 March 2023
As clients get savvier, law firms face pressure to lower their fees
The leading lawyers and icons most recommended by clients
Lalit Bhasin talks to IBLJ about completing 60 years in law, leading many associations, retirement and more
IBLJ recognises the most commended GCs, their in-house teams and the splendid work done by them

Market Pulse

India oasis of hope

India ‘oasis of hope’ for growth: IBA conference panellists in Mumbai

2 June 2023
Suadat Ahmad Kirmani join IndusLaw

Suadat Kirmani bolsters IndusLaw disputes practice in Bengaluru

2 June 2023
sr promotes meher mehta and oishika dagupta

S&R promotes Meher Mehta, Oishika Dasgupta as counsel

2 June 2023

Correspondents

cookie use in Indiavideo

Cookie use in India: A legal vacuum

By Mathew Chacko, Aadya Misra and Shambhavi Mishra, Spice Route Legal
28 February 2023
Incentive structures for startup promotersvideo

How to keep startup promoters on board

By Swathi Girimaji and Sachit Ram, Bharucha & Partners
6 February 2023
roof afza trademark injunction

Success in IP appeal is sweet indeed

By Manisha Singh and Akanksha Kar, LexOrbis
28 February 2023

Features

india regulatory foreign law firm

Mixed signals

Domestic opposition to opening of legal market gives foreign law firms pause for thought

15 May 2023
liberalisation of India's education sector

Liberalising education

Is the liberalisation of the education sector a lesson in how not to open a market?

18 May 2023
Best Top Indian Law Firms 2023

Indian Law Firm Awards 2023

We recognise the ingenuity and achievements of the country’s top law firms

15 May 2023
Domestic opposition to opening of legal market gives foreign law firms pause for thought
Is the liberalisation of the education sector a lesson in how not to open a market?
We recognise the ingenuity and achievements of the country’s top law firms

Practitioner’s perspectives

harmful content to children intermediaries

Zero tolerance on inaction by intermediaries regarding content harmful to children

By Pravin Anand, Vaishali Mittal and Siddhant Chamola, Anand and Anand
16 May 2023

Managing founder disputes in startups

By Nitu Agarwal, YNSS Law Offices
2 May 2023
global privacy law

Navigating global privacy laws: Best practices

By Sreenidhi Srinivasan and Mayank Takawane, Ikigai Law
3 April 2023

Vantage point

New safety net a surety

Why surety bond insurance is a sure thing for the infrastructure sector

17 May 2023
Why surety bond insurance is a sure thing for the infrastructure sector

Jobs

Compliance Manager - 16848/VTA

APAC Legal Counsel, Funds – 16993/VTA

22 April 2023
LAW.ASIA

Asia’s leader in legal intelligence

Law.asia is the digital home of Asia Business Law Journal, China Business Law Journal and India Business Law Journal and a wealth of other resources for Asia-focused in-house counsel and lawyers in private practice. It is produced by Vantage Asia Publishing Limited, an independent media company based in Hong Kong.
Follow Law.asia
Law firm directory A-List lawyers Events Legal jobs • Post a job
About us Archive Archive Archive Archive Subscribe Contact us
Please send any press releases, deal announcements, details of new hires, newsletters and any other news items to: news@law.asia
  • Policy on advertising & sponsorship
  • Terms & conditions of use
  • Privacy Policy
© Copyright © 2022 Vantage Asia Publishing Limited. All rights reserved.
Imagined by DOOD Website Design

Join our mailing list for legal news and alerts

Sign up