Payment by cheque is considered in law as Payment received Issuance of Cheque is an acknowledgment of liability 1. The Apex Court in the case of Commissioner Of Income Tax, Bombay Versus Ogale Glass Works Limited, [AIR 1954 SC 429], in Para 11, inter alia, said – It is said in Benjamin on Sale, 8th Edition, p. 788: “The payment takes effect from the delivery of the bill, but is defeated by the happening of the condition, i.e. non-payment at maturity”. In Byles on Bill, 20th Edition, the position is summarized pithily as follows: A cheque, unless dishonoured, is payment”. To the same effect are the passages to be found in Hart on franking 4th Edition, Volume I. p.342. In Felix Hadley & Co. V/s. Hadley', 1898 2 Ch 680. Byrne, J. expressed the same idea in the following passage in his Judgment: “In this case I think what took place amounted to a conditional payment of the debt; the condition being that the cheque or bill should be duly met or honoured a