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2019 (11) TMI 1064 - HC - Indian LawsDishonor of Cheque - discharge of legally recoverable debt - Section 138 of Negotiable Instrument Act - HELD THAT - The fact remains that the amount was paid by the society on behalf of its individual member to facilitate the transaction in getting their houses constructed by the respondent. Since the individual members of the petitioner society immediately doubted whether the respondent would be able to complete the flats they did not deposit the amount with the society and thus the cheques issued by the society got dishonoured - It is not disputed that the society was constituted for the welfare of its members who were interested in getting their houses constructed by the respondent. Therefore the society played a role only to facilitate its members in getting their houses constructed and the society had no liability as per Section 138 NI Act on the date of signing of the MOU. Even if it is presumed that the said amount was paid to the respondent as advance money even then there appears to be no criminal liability or any liability which is recoverable under provisions of Section 138 NI Act. Petition allowed.
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