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Author Topic: Taher N. Khambati v. Vinayak Enterprises  (Read 1037 times)

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Offline advgaurav.sharma

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Taher N. Khambati v. Vinayak Enterprises
« on: July 31, 2013, 03:10:38 AM »
where in a loan transaction, a blank signed cheque was given as security, the Andhra Pradesh High Court held that the provision of s. 138 of the Act were not attracted in such a case. The Andhra Pradesh High Court held that it could not be construed that the cheque had been issued voluntarily for the discharge of any debt or legal liability as envisaged under s.138 of the Act. In the instant case, the appellant advanced some money to the respondents and obtained a pro-note. It was stipulated that the respondent should pay interest every month. At the same time appellant-creditor took a blank signed cheque from the respondents with the understanding that the complainant could fill the other columns in the cheque and present it if the respondents committed default in payment of interest. So, the appellant has obtained this blank signed cheque with a view to make use of it, as a threat to the respondents for realisation of the amount.
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