Right of defendant to prosecute the plaintiff owing to the dishonour of the cheque issued by the plaintiff cannot be frustrated by seeking a declaration that the said cheque was handed over as a security – Such a declaration cannot be ex facie granted as it would be contrary to the provisions of the N.I. Act and particularly Section 118(a) thereof – Hence, the plaint is liable to be rejected in exercise of jurisdiction under Order VII Rule 11 CPC.
SUPREME COURT OF INDIA DIVISION BENCH M/S FROST INTERNATIONAL LIMITED — Appellant Vs. M/S MILAN DEVELOPERS AND BUILDERS (P) LIMITED AND ANOTHER @ RESPONDENT ( Before : M.R. Shah and…