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Invoking S.138 Of NI Act Does Not Bar Registration Of Crime Under Sections 406, 420 IPC: Karnataka High Court

[13 May 2022] The Karnataka High Court has held that proceedings under Section 420 of the Indian Penal Code are maintainable even if a complaint has been invoked Section 138 of the Negotiable Instruments Act. A single judge bench of Justice M Nagaprasanna said, “In a case under the Act what is required to be noticed is, whether it is for a legally enforceable debt and a fine is imposed. In an offence involved on the same instrument under Sections 406 or 420 IPC sentence of seven years can be imposed and the element mens rea is what is required to be seen in a case for offence of cheating under Section 420 of the IPC inter-alia.”

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