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Jarkiholi had taken a loan from Chikkodi-based Beereshwar Credit Cooperative Society.
He had later submitted a cheque of Rs 5.2 crore to the Society which had bounced.
The Society had approached the local court but the case was dismissed after Society officials did not appear at the hearing.
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The High Court now has overturned the verdict of the local court and instructed for a fresh hearing.