Liability for dishonour of cheque also on borrower/ taker receiving cash loan beyond specified limit u/s 269SS

Arti Rajesh Karangutkar Vs Anna Rocky Fernandes (Bombay High Court) Conclusion: No person should accept any loan or deposit of a sum of Rs.20,000/- or more otherwise than by an account payee cheque or account payee bank draft. Where a person advance cash more than Rs.20,000/- to another person, restriction on cash advances was, in fact, on the taker and not on the person who made an advance. The penalty for taking such advance or deposit in contravention of provisions of Section 269-SS was to be suffered by the taker who accepts the advance. Held: Appellant and respondent were friends and neig...