The Madras High Court has referred to a division bench the question of whether the proprietor of concern would alone be considered as the drawer of a cheque when a prosecution has been initiated.
Rajasthan High Court has recently iterated that the punishment on the drawer for a dishonoured cheque is secondary as far as Section 138 of the Negotiable Instruments Act is concerned. The court added.
The Chhattisgarh High Court has clarified that appeal against the order of acquittal under Section 138 of the Negotiable Instruments Act, 1881 lies to the High Court under Section 378(4) of the Code.
The Karnataka High Court has held that when the drawer of the cheque signs and issues a blank cheque to the complainant, if any alteration appears on the body of the cheque, such alterations need not.
The Bombay High Court recently held that a borrower who received loan in cash is liable for dishonour of cheques issued towards repayment even if the loan amount was beyond the permissible limit for.