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2013 (8) TMI 54 - ALLAHABAD HIGH COURTDishonor of the cheques issued during search proceedings - Action u/s 138 of the Negotiable Instrument Act - Search and seizure done u/s 45 - PD cheques issued as security - Held that:- Goods were not seized at time of search, instead the security was taken for safe keeping of the goods in the shape of post dated cheques offered voluntarily - account books were not found at the place of business at the time of search. The petitioner no.1 knows the consequence of search and seizure, and if he signed five post dated cheques and had tendered the cheques along with a letter to the officers carrying out survey, it is difficult to believe that he was put under any pressure or coerced to part with security. The department may have acted in a haste at the instance of complainant but that they cannot be said to have acted arbitrarily or without any authority of law - Now since the Commercial Tax Tribunal has passed the order by which the security has been reduced and that the entire amount has been deposited, no useful purpose will be served in initiating proceedings under Section 138 of Negotiable Instrument Act - Decided in favour of assessee.
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