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Cheque signature mismatch may lead to criminal proceedings – SC
Case Law Details
- Case Name
- M/s Laxmi Dyechem Vs State of Gujarat & Ors.(Supreme Court of India)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- Supreme Court of India
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A Bench of justices T.S. Thakur and Gyan Sudha Mishra set aside the verdict of Gujarat High Court which had held that criminal proceedings for dishonouring of cheque can be initiated only when the cheque is dishonoured because of lack of sufficient amount in the bank account and not in case where a cheque is returned due to mismatch of signature of account holder.
“Just as dishonour of a cheque on the ground that the account has been closed is a dishonour falling in the first contingency referred to in Section 138 of Negotiable Instrument Act, so also dishonour on the ground...
What is the position of the person whose cheque is stolen and signature is forged? This judgement may lead to this kind of instances.Please clarify