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Supreme Court Quashes Criminal Complaint Under Section 138 NI Act for Cheque Issued as Security — Endorsement on Cheque and Plaint Admission Confirm Security Purpose, No Legally Enforceable Debt Exists

The Supreme Court allowed the appeals filed by the Directors and Managing Director of R.L. Steels & Energy Limited, quashing the criminal complaint un...

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Supreme Court Upholds Contempt Conviction for Breach of Undertaking in Loan Recovery Proceedings. Directors' Failure to Honour Court Undertaking Despite Multiple Opportunities Constitutes Wilful Contempt Under Contempt of Courts Act, 1971, Sections 10 and 12.

The Supreme Court considered a special leave petition challenging contempt convictions for breach of an undertaking given during loan recovery proceed...

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High Court of Karnataka Allows Appeal in Negotiable Instruments Act Case — Restores Conviction for Dishonour of Cheque. Complainant's Financial Capacity to Advance Loan and Legally Enforceable Debt Established, Reversing Acquittal by Sessions Court.

The appellant, Krishna Gopal Khetan, filed a criminal appeal under Section 378(4) of the Code of Criminal Procedure, 1973, challenging the judgment of...

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Bombay High Court Upholds Conditional Leave to Defend in Summary Suit Based on Dishonoured Cheques — Defendant Must Deposit Full Suit Amount. Court holds that under Order XXXVII CPC, leave to defend can be granted on condition of deposit when defence is not bona fide or raises no triable issue.

The petitioner, Navnath R. Adak, was the defendant in Summary Suit No. 464 of 2015 filed by the respondent, Rakesh Giridharilal Rungta, under Order XX...

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Bombay High Court Quashes Process Against Directors in Cheque Dishonour Case Due to Lack of Specific Averments. Directors Cannot Be Prosecuted Under Section 138 of Negotiable Instruments Act, 1881 Without Allegations of Their Role in Company's Day-to-Day Affairs.

The petitioners, who were directors of the accused company, filed a criminal writ petition under Article 226 of the Constitution of India read with Se...

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Bombay High Court Allows Appeal in Cheque Dishonour Case, Sets Aside Acquittal. Presumption under Section 139 of Negotiable Instruments Act, 1881 operates in favour of complainant once issuance and signature are admitted, shifting burden on accused to rebut.

The appellant, Pandurang Ramchandra Ghorpade, filed two criminal appeals against the acquittal of respondent No.1, Vijay Gopala Lohar, in two separate...

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Bombay High Court Quashes FIR in Cheating and Criminal Breach of Trust Case Due to Civil Nature of Dispute. Dispute Arising from Business Transaction Does Not Attract Sections 406 and 420 IPC When Ingredients Are Not Made Out.

The petitioner, Jitendra Nathmal Joshi @ Sharma, filed a criminal writ petition under Section 482 of the Code of Criminal Procedure, 1973 seeking quas...