ORDER

1. Leave granted.

2. These appeals take exception to the Judgment and Order dated 23rd July, 2018 passed by the High Court of Delhi at New Delhi in Crl. M.C. Nos. 3084/2015 and 3086/2015 whereby the proceedings initiated against respondent No.1 for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881 came to be quashed.

3. The High Court mainly referred to the assertion in the complaint that the security cheques were demanded in response to which the accused had issued three signed blank cheques and stated if the amount is not returned within two years then by presenting the cheques the same may be encashed. This assertion was assumed by the High Court to mean that the cheques were given only by way of security. Having said that, the High Court proceeded to hold that the “security” offered was not for the discharge of any debt or any liability. Resultantly, it came to hold that the action under Section 138 of the Negotiable Instruments Act, 1881 cannot proceed against the accused any further.

4. We have heard counsel for the parties.

5. In our opinion, the High Court has muddled the entire issue. The averment in the complaint does indicate that the sign