Contract Law: The Case of Reliance Communications Ltd v. EDELWEISS ASSET RECONSTRUCTION COMPANY LTD

I remember this one mock test like it was yesterday (and I wish I could forget it . It was the Judicial Services exam prep, and our team had to debate on the validity of a contract between Reliance Communications and Edelweiss. The contract was signed under section 138 of the Negotiable Instruments Act, 1881, which makes it a criminal offense if a cheque is dishonored.

The twist? The cheques were dishonored because the companies were involved in a bitter dispute over debt repayment. We had to argue whether the dishonor was a genuine commercial dispute or a deliberate attempt to defame the other party. I scored 80/100 on this question and felt quite proud of myself, but looking back, I think I could've done better.