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2017 (10) TMI 31 - HC - Indian LawsDishonor of cheque - Is "an Insolvent" a immune from criminal prosecution arising out of dishonour of cheque? - Whether the "retired partner" is liable for criminal prosecution for dishonour of cheque and whether such a plea can be considered in the quashment of the private complaint arising out of dishonour of cheque? - Held that:- The protection given under Section 29 and 31 of the Presidency Towns Insolvency Act is only in respect of debtor for a civil decree and he cannot be detained in civil detention and the civil arrest has contemplated under the Civil Procedure Code. The primary concept of the Insolvency Act gives only protection against the civil detention and civil arrest for a person for non-payment of money in the business transaction either based on the pro-note or a cheque before the amendment. But after the amendment in respect of bouncing of cheque that has been specifically declared as an offence and hence, the protection contemplated under the Section 29 and 31 of the Presidency Towns Insolvency Act does not loom large and protect the petitioner herein. Since, after the amendment as stated above dishonor of cheque has became a criminal liability and in this view of the matter though the petitioner herein be declared has "insolvent" under the "Presidency Towns Insolvency Act". However, it does not cloth him with immunity from criminal prosecution for dishonour of cheque and in this view of the matter this petition is devoid of merits and the same is dismissed.
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