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1 - 10 of 13 (0.20 seconds)Section 420 in The Indian Penal Code, 1860 [Entire Act]
Dcm Financial Services Ltd vs J.N.Sareen & Anr on 13 May, 2008
11. Section 138 of the Act moreover provides for a penal provision. A
penal provision created by reason of a legal fiction must receive strict
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construction. [See R. Kalyani v. Janak C. Mehta and Ors. (2009) 1 SCC 516
and DCM Financial Services Ltd. v. J.N. Sareen and Anr. (2008) 8 SCC 1].
Such a penal provision, enacted in terms of the legal fiction drawn would be
attracted when a cheque is returned by the bank unpaid. Such non-payment
may either be: (i) because of the amount of money standing to the credit of
that account is insufficient to honour the cheque, or (ii) it exceeds the
amount arranged to be paid from that account by an agreement made with
that bank.