Mere dishonour of the cheque alone cannot form the basis to attract Section 138 of the NI Act – R.Prakash Vs. T.Sivakumar and Anr. – Madras High Court
When the appellant has not established that there exists a legally enforceable debt, which has to be paid by the respondents for which the cheque was issued, which has since been dishonoured, the mere dishonour of the cheque alone cannot form the basis to attract Section 138 of the Act, more so, when it is the case of the respondents that the cheque, which was given for the purpose of carrying out the day-to-day activities has been misused cannot be brushed aside.