Presentation of Security Cheque on Loan Default Does Not Amount to Criminal Breach of Trust: Delhi High Court
The Delhi High Court has delivered a crucial ruling clarifying the scope of Section 409 of the Indian Penal Code, 1860, holding that a bank does not commit criminal breach of trust by presenting a security cheque upon default of loan repayment. The Court quashed criminal proceedings initiated against China Trust Commercial Bank and its officials, observing that such disputes arise out of contractual obligations and not criminal liability. Background…
