Court Upholds Section 138: Ensuring Trust in Banking by Discouraging Cheque Dishonor and Promoting Financial Responsibility.

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....Dishonor of Cheque - object underlying Section 138 of the Act is to promote and inculcate faith in the efficacy of banking system and to create an atmosphere of faith and reliance by discouraging people from dishonouring their commitments which are implicit when they pay their dues through cheques - As per settled principle of law while interpreting statutory provision the Court must adopt an approach that effectuates the object of the legislation and not the one which defeats or frustrates the same. - HC....