Dishonour of cheque - Cash loan given

Sanjeev kuchhal good judgment brought to the notice on this site and I am sure it will BRING lot of pleasure to NI.138 complainants but still it is not last word since amount is more so parties will go to further litigation.

PLEASE KEEP DOING IT.

Many Many thanks to Mr.Sanjeev to publish and made legal awarance on this site and brought impt judgment.

Rgds

BASAVARAJ.R

Yes it can be challanged in SC since the penalty u/s 271 D of IT act is 100% of the amount, so what is the benefit to the borrower to take such risk.

Sir,

As it appears from your text that a case where a loan given in cash ( even in excess of 20000) can be contested on grounds of sec 138 of NI act. What if only a promissory note is executed for the loan amount but without any receipt. Can a cheque taken at the time of sanctioning the loan be presented to the bank as issued against discharge of the debt and on dishonour can a case be filed u/s 138 of NI act..

thanks in advance..

Now there is a further judgement of Bombay HC which contricts above judgment on account of section 23 of contract act.

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