Stop payment of post-dated cheques an offence: SC

In a major order helping financial institutions and banks to recover loans, the Supreme Court has ruled that stop payment of post-dated cheq...

In a major order helping financial institutions and banks to recover loans, the Supreme Court has ruled that stop payment of post-dated cheques issued by a person to discharge his debt or liability could amount to a penal offence.

‘‘A post-dated cheque will lose its credibility and acceptability if its payment can be stopped routinely,’’ a bench comprising Justice M.B. Shah and Justice Arun Kumar said in a recent judgment.

Referring to an amendment to Section 138 of Negotiable Instruments Act making bouncing of cheques a penal offence, the bench said the amendment was brought forward with the object of inculcating faith in the efficacy of banking operations and giving credibility to negotiable instruments in business transactions.

The faith, which the legislature had desired that such instruments should inspire in commercial transactions, would be completely lost if parties were allowed to interdict payment by issuing instructions to banks to stop payment of cheques, it stated.

SP leader Azam Khan walks out of jail after 23 months, hundreds of supporters welcome him

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Senior Samajwadi Party leader Azam Khan, who is facing multiple cases, walked out of the Sitapur jail today after 23 months. He was scheduled to be released early Tuesday morning, but it was delayed due to impending court proceedings. Hundreds of supporters gathered outside the Sitapur jail, waiting for the SP leader to walk out of prison.

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