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Dishonored cheques by companies can lead to legal action u/s 138 of the Negotiable Instruments Act.

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Full Text of the Document

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....Dishonor of Cheque - cheque was issued in discharge of any debt or liability of the company or not - Every award of the Lok Adalat is deemed to be decree of a civil court and executable as a legally enforceable debt - . The dishonour of the cheque gave rise to a cause of action u/s 138 of the Negotiable Instruments Act.....

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