2006 (6) TMI 539

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..... d sweet meats. The complainant was taking supplies from the accused and had given caution deposit. The contract was terminated. The accused issued cheque Ex.P.1 for Rs. 2,37,411.78 towards repayment of caution deposit. On presentation cheque is dishonoured. The intimation of dishonour is received on 23.3.1996 as per Ex.P.2. The complainant issued statutory notice and thereafter filed a private com .....

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..... endorsement and received the cheque agreeing to the terms mentioned in Ex.D.2. The contents of Ex.D.2 states that the accounts to be settled on or before 6.3.1999. The Ex.D.7 is the endorsement showing settlement of amounts and it permits the complainant to present the cheque for encashment. Ex.D.7, dated 18.3.1999 bears the seal and signature of the manager of the accused. The cheque is presented .....

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..... some time to enable the drawer to make payment by cash and take back the cheque or allow time to arrange funds for encashment of cheque. When the amount is not paid as per oral understanding the payee is well justified to present the cheque for encashment. The cheque even if it is issued as a security for payment, it is negotiable instrument and encashable security at the hands of payee. Therefore .....

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