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 ...