Click or Just copy and past this link to see the Important case laws on Dishonour of Cheques.

[vskesavan]

http://docs.google.com/View?docid=dc8s42kp_2fbg6skff

[dipti raut]

please sir let me know the any authority or citetion......on Even if the cheque is issued for security or guarantee purposes, if dishonoured, it will attract prosecution U/s.138 of NI Act. The account holder should have the sufficient amount in his account to honour the cheque on the date of issuing of the cheque itself. Even though this is not followed in today's transactions, atleast the drawer should maintain sufficient balance of cheque value on the date of cheque as precautionary measure. Further, he should give stop payment advice to the bank concerned stating all the reasons for stopping the payment.