Thursday, February 23, 2017

Advocate’s laxity to obtain receipt from Police for transfer of bounced cheque isn’t misconduct

Client has filed a complaint before Bar Council of India alleging that cheque handed over to the appellant – Advocate to initiate criminal action against defaulter under Section 138 of the Negotiable Instrument Act was not returned to him. On the basis of complaint received, a disciplinary proceeding was initiated against Advocate and found him guilty of professional misconduct. Further, An Advocate has filed appeal to the Apex Court against the order of disciplinary committee.

The Apex Court held that it is only a case of negligence and not a case of 'gross negligence' and hence the Advocate is not guilty of professional misconduct as Advocate handed over the original bounced cheque to police given by his client and failed to obtain any acknowledgement from them. - [2017] 78 taxmann.com 220 (SC)

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