In the present scenario, the complainant gets arbitrary power to ask for an amount which is much higher than the cheque amount and the applicable interest on it.
A Jamnagar Court noted that Santoshi had admitted to the execution of the cheque, which led to the presumption in favor of the complainant that the cheque was issued to him for discharge of a legal debt.
The Court was dealing with a plea by a lawyer who had raised concern that it has become a routine practice in district courts to not inform advocates and litigants about the dates on which cases are listed.
The Delhi High Court recently observed that dishonor of a cheque given as security attracts Section 138 of the Negotiable Instruments Act (“NI Act”) and cases where cheques are dishonored for.