Wednesday, May 16, 2012

BOUNCED CHEQUE CAN LEAD TO 2 CHARGES

Issuing a cheque which is dishonoured by a bank can lead to two separate criminal proceedings,
one under Section 138 of Negotiable Instruments Act and another for cheating or breach of trust
under the Indian Penal Code. The Supreme Court stated that they can precede independently of
each other, in the case, Sangeeta Ben vs. State of Gujarat. In this case, the person who issues
the case was convicted and later acquitted under the cheque law. However, there was another case
for cheating. The accused moved the Gujarat high court arguing that she cannot be tried again on
the same offence as it would amount to abuse of process of law. The high court dismissed the
petition and allowed the cheating case to proceed. Counter appeal to the Supreme Court was also
dismissed.

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