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1994 Supreme(Guj) 188

S.D.SHAH
DADA SILK MILLS – Appellant
Versus
INDIAN OVERSEAS BANK AND BANKING COMPANY,surat – Respondent


Advocates Appeared: AKKAD V.TRIVEDI, ASHOK C.GANDHI, N.N.GANDHI, Navin K.Pahwa

S. D. SHAH, J.

( 1 ) ). This group of applications filed under Section 482 of Code of Criminal Procedure raises an interesting question of interpretation of Section 138 read with Section 142 of the Negotiable Instruments Act 1881 (hereinafter referred to as the said Act for brevity ). The question raised is as to whether penal or criminal liability sought to be imposed on the drawer of a cheque by Section 138 of the said Act is limited to two specified cases of dishonour of the cheque by the banker or whether section would apply and inability could be imposed in all cases of dishonour of the cheque by the banker for reasons referable either to insufficiency of funds in the account from which the cheque is drawn or whether the drawer has failed to make arrangement for the funds so that cheque may be honoured. In other words the question is one of interpretation of a penal provision in the statute should it be strictly construed so as to confine operation of Section 138 to the cases of dishonour of the cheque to two specified classes of cases or should it be liberally construed consistent with the legislative intent and object sought to be achieved by Legislature while introducing Cha
























































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