Proceedings U/S 138 N.I. Act Justified In Cases Arising From Commercial Transactions Regardless Of Their Civil Nature: J&K High Court

The Jammu & Kashmir High Court upheld that proceedings under Section 138 of the Negotiable Instruments Act are appropriate for cases stemming from commercial transactions, regardless of their civil nature. This judgment reaffirms that the criminal provisions related to dishonored cheques apply even in disputes primarily of a civil nature, ensuring that commercial transactions involving dishonored instruments are subject to criminal proceedings to uphold financial integrity and accountability.