Cheque Dishonour Cases And Security Deposit Enigma: Explicating The Incertitude By Dictates

The primary objective behind the enactment of the Negotiable Instruments Act, 1881 ("NI Act") was to engender binding and authoritative rules of law relating to negotiable instruments¹ so that the claims upon mercantile instruments could be equated with ordinary goods, passing from hand to hand. While terming the law relating to negotiable instruments as the law of commercial world, the Hon'ble Apex Court in Shri Ishar Alloy Steels Ltd. v. Jayaswals Neco Ltd.² observed that the provisions under the said enactment are aimed to, "facilitate the activities in trade and commerce, making provision of giving sanctity to the instruments of credit which could be deemed to be convertible into money and easily passable from one person to another. In the absence of such instruments, the trade and commerce activities were likely to be adversely affected as it was not practicable for the trading community to carry on with it the bulk of the currency in force." Significantly, in