Compounding of offences - The Legal Chamber

Supreme Court Reinstates Conviction in Cheque Bounce Case, Slams High Court’s Interference

21Nov

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Reinstates Conviction in Cheque Bounce Case, Slams High Court’s Interference

This Supreme Court judgment reinforces the statutory presumptions under Sections 118 and 139 of the Negotiable Instruments Act, 1881, which arise upon admission of a cheque's execution. It clarifies that these presumptions are rebuttable, but the initial onus is on the accused. The ruling also establishes that a violation of Section 269SS of the Income Tax Act, 1961, does not render a debt legally unenforceable for proceedings under Section 138 of the NI Act. Facts Of The Case: The case originated from a complaint under Section 138 of the Negotiable Instruments Act, 1881, filed by the appellant, Sanjabij Tari, concerning a cheque for Rs. 6,00,000 issued by the respondent, Kishore S. Borcar. The cheque was dishonoured due to insufficient funds. The appellant contended that the amoun...

No Endless Cases: Supreme Court Uses Special Power to End Dowry Case After Couple Divorced

The Supreme Court quashed criminal proceedings under Sections 498A/34 IPC and Sections 3/4 of the Dowry Prohibition Act against the father-in-law, invoking Article 142 of the Constitution. The Court held that continuing prosecution after divorce and in the absence of specific, timely allegations amounted to an abuse of the process of law. Facts Of The Case: The marriage between the complainant (Respondent No. 2) and the appellant’s son was solemnized in December 2017. By May 2019, marital discord arose, leading the wife to leave the matrimonial home and allege mental and physical cruelty. Both parties attended police-led counselling sessions, which resulted in an agreement to remarry through Hindu rites. However, the wife soon left again and, in July 2019, filed an FIR alleging that her ...

Supreme Court Acquits Accused in Cheque Dishonour Case After Full Repayment : Section 138 Negotiable Instruments Act, 1881

The Supreme Court allowed the criminal appeal, setting aside the High Court's conviction under Section 138 of the Negotiable Instruments Act, 1881, and acquitted the accused. The Court held that the Goa Money-Lenders Act, 2001 provided a valid defense, as the complainant engaged in unlicensed money-lending. Exercising powers under Article 142 of the Constitution, the Court compounded the offence, noting full repayment of the cheque amount and compensation. The judgment underscores that statutory violations by complainants can vitiate prosecutions under the NI Act. Facts Of The Case: The case arose from a cheque dishonour complaint filed by respondent Govind Prabhugaonkar against appellant Rajendra Varik under Section 138 of the Negotiable Instruments Act, 1881. The trial court convicted ...