Summary
- The Allahabad High Court has ruled that dishonour of a cheque from a merged bank does not attract criminal liability under Section 138 of the Negotiable Instruments Act, 1881.
- In the case of Smt. Archana Singh Gautam Vs State of U.P., the court quashed proceedings against Gautam for a cheque issued after its validity expired post-merger of Allahabad Bank into Indian Bank.
- The court emphasized that the cheque was invalid as it was presented after the deadline set by Indian Bank, which had announced that Allahabad Bank cheques would only be honoured until September 30, 2021.
- This judgment clarifies that cheques from merged banks presented beyond their validity cannot lead to legal repercussions
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