look news india
Cheque Bounce Case: In an important decision, the Allahabad High Court has said that the bouncing of cheques of banks which have merged with another bank will not be considered a crime under Section 138 of the NI Act. If the cheque bounces, the person who issued it will not be prosecuted under Section 138 of the NI Act. Justice Arun Singh Deshwal has given this order while accepting the petition of Archana Singh Gautam of Banda in the case of cheque bouncing of a bank which has merged with Indian Bank.
The petitioner issued a cheque to the opposite party on 21 August 2023, which he presented to the bank on 25 August 2023. The bank declared it invalid and returned the cheque. On which the opposite party filed a complaint of cheque bounce against the petitioner under 138 NI Act. The petitioner challenged the summons order issued by the court in the High Court.
The court said that according to section 138 of the NI Act, if a void cheque is dishonoured by the bank when presented to the bank, then the offence under section 138 is not committed. Allahabad Bank was merged with Indian Bank on 1 April 2020 and its cheques were valid till 30 September 2021. After this, if the bank rejects the cheque presented, then it does not become a case of cheque bounce. The court said that according to the NI Act, the cheque issued should be valid, only then it becomes a crime if it bounces.
