In Brief
Gimpex Private Limited disputed a High Court order quashing a Section 138 cheque dishonour complaint. The Court held that once parties settle a dispute by deed of compromise and issue fresh cheques in performance of that deed, the original complaint is subsumed and cannot proceed in parallel. However, if those fresh cheques are dishonoured, a new cause of action arises. The Court set aside the quashing order, allowing the second complaint to proceed, but quashed the original first complaints as they were subsumed by the settlement deed. The Court emphasised that whether cheques were issued to discharge a 'legally enforceable liability' is a trial question, not for determination during quashing proceedings. Appeals partly allowed.
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