Supreme Court of India

Nepc Micon Ltd. and Ors. v. Magma Leasing Ltd.

Neutral citation

Reported as [1999] 2 S.C.R. 932

Bench K.T. Thomas and M.B. Shah JJ.

Decided 29 April 1999

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

5 Supreme Court benches have cited this judgment.

What the Court ordered

In view of the aforesaid discussion we are of the opinion that even though Section 138 is a penal statute, it is the duty of the Court to interpret it consistent with the legislative intent and purpose so as to suppress the mischief and advance the remedy.

Judgment, page 10

From the headnote

Negotiable Instruments Act, 1881-Sections 138 and 140-Cheques Dishonour of-Cheque returned with an endorsement 'account closed' Applicability of section 138-Held, Account closed would mean that the cheque is returned as unpaid on the ground that the amount of money standing to the credit of that account is insufficient to honour the cheq;e~ Hence section 138 attracted. Interpretation of statutes : Penal statutes-Duty of the Court to interpret it consistent with the legislative intent and purpose. Words and Phrases : "Account closed"-Meaning of in the context of Negotiable Instruments Act,

Authorities it was built on

1998 Modi Cements Ltd. v. Shri Kuchil Kumar Nandi cited by 8
1974 Swantraj & Ors. v. State of Maharashtra cited by 7

Where later benches applied it

2024 Bijoy Kumar Moni v. Paresh Manna & Anr. relied on
2012 M/s. Laxmi Dyechem v. State of Gujarat & Ors. relied on
2022 State of Himachal Pradesh v. Nirmal Kaur @ Nimmo and Others referred to
2022 Dashrathbhai Trikambhai Patel v. Hitesh Mahendrabhai Patel & Anr referred to
2012 Aneeta Hada v. M/s. Godfather Travels & Tours Pvt. Ltd. referred to

Of those, 2 relied on · 3 referred to

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