As an advocate practicing at the Supreme Court, I’ve handled my fair share of cheque bounce cases under Section 138 of the Negotiable Instruments Act. But one case, involving a staggering 10 crore dispute, left me deeply reflective about how easily trust can be exploited in business transactions.

In this case, my client had issued multiple cheques in good faith, purely as security for day-to-day business dealings. Little did he know, these cheques would later be misused to fabricate a false debt claim. The legal battle was grueling – from handling police inquiries to dealing with local goons and navigating the complexities of the court. Everything seemed stacked against us.

But with a well-thought-out strategy, relentless effort, and a focus on multiplying my client’s capital to strengthen his position, we turned the tide in his favor. It was a hard-fought victory, but it underscored a critical lesson: *issuing cheques, even in good faith, requires extreme caution.*

Here’s my advice to everyone:
1️⃣ *Avoid Blank Cheques:* Never issue a blank cheque, even as security. Fill in all details, including the amount and payee name.
2️⃣ *Clearly Define Purpose:* If a cheque is issued as security, document its purpose in writing with the recipient.
3️⃣ *Limit Cheque Amounts:* Ensure the cheque amount aligns with the actual transaction value.
4️⃣ *Maintain Records:* Keep a record of all cheques issued, including dates, amounts, and purposes.
5️⃣ *Monitor Cheque Usage:* Regularly check if issued cheques have been encashed or returned.

The NI Act is stringent, and the presumption of liability under Section 138 can be a double-edged sword. Protect yourself from false claims and misuse.

Let’s spread awareness about this critical issue. Share this post to help others avoid falling into similar traps. 💼⚖️

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Stay cautious, stay safe! 🙏