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Delhi High Court Held That Security Cheque Can Constitute As An Enforceable Instrument Under Section 138 Of The NI Act
The High Court of Delhi through its judgment dated 11.11.2025 in Manmohan Gaind v. Negolice India Pvt. Ltd , held that a cheque issued as a security may constitute a legally enforceable instrument under Section 138 of the Negotiable Instruments Act, 1881 ("NI Act"), if any subsisting liability exists on the date of its presentation.
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