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AIR 2002 SUPREME COURT 3014 ::2002 AIR SCW 3358
Supreme Court Of India
(From : Kerala)*
Hon'ble Judge(s): U. C. Banerjee, Y. K. Sabharwal , JJ

Negotiable Instruments Act (26 of 1881) , S.138— Dishonour of cheque - Key expressions 'any cheque' and 'other liability' in S. 138 - Clarifies the legislative intent - Issue regarding co-extensive liability of guarantor and principal @page-SC3015debtor - Is totally out of purview of S. 138 - Cheque issued by guarantor - Cannot be said to have not been issued for purpose of discharging any debt or liability - Complaint under S. 138 for its dishonour - Maintainable.Crl. M. C. No. 1530 of 2000, D/- 24-7-2000 (Ker), Reversed. The commencement of the Section stands with the words 'where any cheque'. The said three words are of extreme significance, in particular, by reason of the user of the word 'any' the first three words suggest that in fact for whatever reason if a cheque is drawn on an account maintained by him with a banker in favour of another person for the discharge of any debt or other liability, the words any debt or other liability if read with the first three words at the commencement of S. 138, leave no manner of doubt that for whatever reason it may be, the liability under this provision cannot be avoided in the event the same stands returned by the banker unpaid. The legislature has been careful enough to record not only discharge in whole or in part of any debt but the same includes other liability as well. Therefore the finding t....

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