The court also ruled: “The dishonour of the cheque issued for the subsequent relief of liability is clearly covered by the statute in question … In determining the applicability of section 138 of the Act, it is important to know whether the cheque constitutes the fulfillment of existing enforceable debts or debts or whether it constitutes a non-fault or obligation down payment. The dishonour of the cheque in this case, which is the relief of existing liability, falls within section 138 of the act, as the High Court quite rightly stated. In Sampelly Satyanarayana Rao v. Indian Renewable Energy Development Agency Limited (1), the Supreme Court found that a disgraced cheque for the repayment of a loan tranche, described as “security” in the loan agreement, is covered by the criminal liability established in Section 138 of the Negotiable Instruments Act 1881. Section 138 is punishable when a person issues a cheque, which is then disgraced by an account they maintain, in order to pay a sum of money from that account to another person for setting up a debt or other liability in full or in part. “3.1. Loan security. – The loan, with interest, interest, liquefied damages, commitment costs, repayment or repayment costs, fees, expenses and other funds are guaranteed by: if the cheque has jumped, you can send a legal opinion within 30 days of that rebound and if it does not pay money, either you can bring criminal proceedings in JMFC court according to Sec 138 of Negotiable Instruments Act , or you can bring a civil action in the civil court. In deciding whether the dishonourable cheques issued for the performance of the existing liability fall within Section 138 of the Act, the Supreme Court added that the question of whether a post-dated cheque is a “deleveraging or liability” depended on the nature of the transaction. Section 138 is only attracted if, at the time the cheque was issued, there was a liability or liability or if the amount had become legally recoverable. This case was challenged in the Supreme Court, where it was asked whether, with respect to the facts, the dishonour of loan advance repayment cheques, also known as “guarantee” in the loan agreement, was covered in Section 138.