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M/s. Laxmi Dyechem Vs. State of Gujarat [27/11/12]

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[Criminal Appeal Nos. 1870-1909 of 2012 arising out S.L.P. (CRL.) Nos. 1740-1779 of 2011]. [Criminal Appeal Nos. 1910-1949 of 2012 arising out S.L.P. (CRL.) Nos. 1780-1819 of 2011]. These appeals are directed against orders dated 19th April, 2010and 27th August, 2010 passed by the High Court of Gujarat at Ahmedabad whereby the High Court has quashed 40 different complaints under Section 138 of the Negotiable Instruments Act, 1881 filed by the appellant against the respondents. Relying upon the decision of this Court in Vinod Tanna & Anr. v. Zaher Siddiqui & Ors. (2002) 7 SCC 541, the High Court has taken the view that dishonour of a cheque on the ground that the signatures of the drawer of the cheque do not match the specimen signatures available with the bank, would not attract the penal provisions of Section 138 of the Negotiable Instruments Act. According to the High Court, the provisions of Section 138 are attracted only in cases where a cheque is dishonoured either because the amount of money standing to the credit to the account maintained by the drawer is insufficient to pay the cheque amount or the cheque amount exceeds the amount arranged to be paid from account maintained by the drawer by an agreement made with the bank.

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