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M/S Meters And Instruments Private ... vs Kanchan Mehta on 5 October, 2017

22. Even otherwise, the offences, under Section 138 of the NI Act, are based upon civil wrong. The nature of offences, under Section 138 of the NI Act, has elaborately been discussed by the Hon'ble Supreme Court, in Meters & Instruments (P) Ltd. versus Kanchan Mehta, reported ::: Downloaded on - 25/04/2024 21:47:45 :::CIS 13 in (2018) 1 Supreme Court Cases 560. Relevant paras-6 and 7 of the judgment, are reproduced, as under:
Supreme Court of India Cites 48 - Cited by 753 - A K Goel - Full Document

Goa Plast (P) Ltd vs Chico Ursula D'Souza on 20 November, 2003

7. This Court has noted that the object of the statute was to facilitate smooth functioning of business transactions. The provision is necessary as in many transactions cheques were issued merely as a device to defraud the creditors. Dishonour of cheque causes incalculable loss, injury and inconvenience to the payee and credibility of business transactions suffers a setback. [Goa Plast (P) Ltd. v. Chico Ursula D'Souza, (2004) 2 SCC 235, p. 248, para 26 : 2004 SCC (Cri) 499] At the same time, it was also noted that nature of offence under Section 138 primarily related to a civil wrong and the 2002 Amendment specifically made it compoundable.
Supreme Court of India Cites 11 - Cited by 321 - A R Lakshmanan - Full Document
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