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Cheque bounce case: Dindoshi Sessions Court sets aside magistrate court order

The session court agreed with the arguments of the defence lawyer and stopped the proceedings issued by the magistrate, saying that the order is not legal.

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Representative Image.

Representative Image.

The Dindoshi Sessions Court has set aside the order of the magistrate court in a cheque bounce case, where the magistrate has issued proceedings against a private firm under Section 138 and 141 of the Negotiable Instruments (NI) Act. The court has also said that the order passed by the magistrate is illegal, and it has also referred to the recent judgement of the Supreme Court, which says that "a cheque cannot be presented for encashment without recording the part payment, and the offence u/s 138 of the N.I. Act would not be attracted if the unendorsed cheque is dishonoured on presentation since the cheque does not represent legally enforceable debt at the time of encashment."

A real estate company, Hubtown, has moved to the Dindoshi Sessions Court against the proceedings issued by the Andheri magistrate in connection with a 7.55 crore cheque bounce complaint filed against them by a private firm, International Assets Reconstruction Company (IARC) Pvt. Ltd. Initially, the complaint was filed by Dena Bank, but later it was taken over by the private firm IARC.

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