Cheque Dishonour Due to Subsequent Freezing of Drawer’s Bank Account – S.138 NI Act Not Attracted: Karnataka HC

ND Developers Private Ltd. Vs Ritesh Raushan (Karnataka High Court) Cheque Dishonour Due to Subsequent Freezing of Drawer’s Bank Account – S.138 NI Act Not Attracted: Karnataka HC The Karnataka High Court held that prosecution under Section 138 of the Negotiable Instruments Act cannot be sustained when the cheque is dishonoured due to debit freezing of the bank account by police investigation, and not due to insufficiency of funds. In the present case, the complainant had purchased a flat under a No-Pre-EMI scheme from the developer company. Due to delay in handing over possession, the...