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Rice mill owner borrowed funds to cheat a person how to proceed


04-Aug-2023 (In Criminal Law)
One rice mill owner borrowed funds from Mr X . To cheat Mr X ,rice mill owner issued a cheque in the name of Mr Y and showed payment to Mr X in his books of account and closed the loan account of Mr X . The rice mill owner opened a bank account in the name of Mr Y and deposited the cheque and withdrew the money. Is this criminal act and if so under what section? How to proceed to recover the loan amount.
Answers (1)

Answer #1
532 votes
Yes, certainly it falls under section 420 of IPC . Does Me. X has proof lending.? Then only he can proceed against the borrower for cheating as well as for recovery of the amount due to him in a recovery suit.
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