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Before 1988, there was no provision inside the Act prohibiting folks from issuing checks with no sufficient cash in their account, nor was there any provision punishing them if their checks were being dishonoured.
Since the punishment presented beneath Section 138 of the Act was considered to be inadequate, and the strategy specified to the Courts to handle this sort of circumstances was discovered to become complicated, it had been felt that revisions towards the Act were being expected.
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To refute this presumption, points should be presented, and they have to be shown by a preponderance on the proof. It isn't a defence in a very prosecution for an offence less than Segment 138 the drawer experienced no induce to Believe when he issued the Examine that It could be dishonoured when offered, Based on Area one hundred forty of your Act.
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To offer for summary trial in the situations beneath the Act using a check out to speeding up disposal of circumstances.
Even with several attempts produced occasionally to make sure the timely, Expense-efficient, and seamless disposition of instances involving check dishonour, the expected effect on situation pendency wasn't realized.
Although Part 142 of the Act, which was enacted in 1988, outlined the circumstances through which a criticism about cheque dishonour could be submitted, it didn't define the territorial jurisdiction on the courts in which this type of grievance might be lodged. Therefore, it absolutely was up towards the courts to find out whether a situation submitted fell in their territorial jurisdiction.
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The ruling harmonises and harmonises the Code’s and Act’s provisions. It preserves the corporate debtor’s belongings in the course of the insolvency resolution procedure though also making it possible for recovery treatments towards administrators/persons in administration or Charge of the corporate debtor to carry on under the phrases of Portion 138 on the Act.
Supplied the breadth of the term “proceedings,” as previously set up, the courtroom established that it had been difficult to concur that it ought to be limited to civil litigation only.
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