Technical Errors in Cheques Do Not Invalidate Legal Proceedings: Delhi High Court
Technical Errors in Cheques Do Not Invalidate Legal Proceedings: Delhi High Court By Abhishek Jat, Advocate In a significant ruling, the Delhi High Court has clarified that minor discrepancies in the amount mentioned in words and figures on a cheque, or overwriting of the date, do not render the cheque invalid under the Negotiable Instruments Act, 1881 (NI Act). The judgment, delivered by Justice Neena Bansal Krishna, underscores the importance of substance over technicalities in cases involving dishonored cheques. Background of the Case The petitioner filed a complaint under Section 138 of the NI Act against Respondent 2, alleging that a cheque issued for Rs. 4,65,000 was dishonored with the remark “payment stopped by the drawer.” The cheque was issued to discharge a loan liability of Rs. 5,00,000. However, the cheque contained a discrepancy: while the amount was written as Rs. 4,65,000 in figures, it was stated as “Rupees Four Lac Sixty-Five only” in words. Additionally, ...