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Indian Laws - Highlights / Catch Notes

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The High Court quashed the criminal proceedings u/s 138 of the ...


Court quashes criminal case for cheque dishonour due to civil dispute, calling it malicious prosecution.

Case Laws     Indian Laws

June 18, 2024

The High Court quashed the criminal proceedings u/s 138 of the Negotiable Instruments Act arising from a complaint case. The petitioners were accused of criminal conspiracy to encash cheques by forging bills despite no material being supplied. The Court held that the cheque issued as security in a financial transaction matures for presentation if not repaid as agreed, leading to consequences u/s 138. The Court found the complaint to be malicious prosecution to shortcut civil proceedings, quashing the entire criminal case. The decision was influenced by a Supreme Court judgment emphasizing the legal consequences of dishonored cheques used as security.

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