MAKWANA MANGALDAS TULSIDAS Vs. STATE OF GUJARAT
SUPREME COURT OF INDIA
Makwana Mangaldas Tulsidas
STATE OF GUJARAT
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(1.)This Petition relates to dishonour of two cheques on 27.01.2005, for a total amount of Rs. 1,70,000/-, tried and contested over a period of 15 years up till this Court. A matter which is supposed to be disposed of summarily by the trial court in six months, it took seven years for this case to be disposed of at the trial court level. A dispute of such nature has remained pending for 15 years in various courts, taking judicial time and space up till this Court.
(2.)Dishonour of cheque, which originally gave cause of action to file a civil suit, was criminalised in the year 1988, with the insertion of Chapter XVII in the Negotiable Instrument Act, 1881. Cheque dishonour, followed by default Date: 2020.03.07 12:47:31 IST Reason: in payment after a demand notice, became punishable under Section 138 with imprisonment or fine which may extend to twice the amount of the cheque or both.
(3.)The legislative intent behind the above-mentioned amendment was to ensure faith in the efficacy of banking operations and credibility in transacting business on cheques. It was to provide a strong criminal remedy in order to deter the high incidence of dishonour of cheques and ensure compensation to the complainant. Subsequent amendments in the Act and the pronouncements of this Court reflect that it was always perceived that these cases would be disposed off speedily so as to preserve the object of criminalisation of the act.
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