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State of Madhya Pradesh - Section

Section 38 in The M.P. Adjustment and Liquidation of Industrial Workers' Debt Act, 1936

38. Penalty to encumbered industrial worker for obtaining credit.

- [(1) An encumbered industrial worker obtaining credit to the extent of five hundred rupees or upward from any person without informing such person that he is an encumbered industrial worker shall, on conviction by a Magistrate, be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to two hundred rupees, or with both] [Substituted by M.P. Act 16 of 1976.].
(2)Where the Court has reason to believe that an encumbered industrial worker has committed the offence referred to in sub-section (1) the Court, after making such preliminary inquiry, as may be deemed fit, may send the case for trial to the nearest Magistrate of the first class and may send the accused in custody or take sufficient security for his appearance before such Magistrate and may bind over any person to appear and give evidence on such trial.