Case Note & Summary
The case involved a dispute arising from a dishonoured cheque issued by the appellant in favour of the respondent. The appellant issued a cheque for Rs.1,30,000/- which was dishonoured, leading the respondent to file a complaint under Section 138 of the Negotiable Instruments Act, 1881. The Trial Court convicted the appellant and imposed a fine of Rs.2 lakhs, which was upheld by the revisional court and the High Court. The appellant deposited Rs.1 lakh with the Trial Court and another Rs.1 lakh in the Supreme Court's Registry. The respondent expressed willingness to withdraw the complaint if Rs.1,90,000/- was paid to him from the deposited amount. The Supreme Court, considering the peculiar facts, decided to set aside the conviction and directed the payment of Rs.1,90,000/- to the respondent, along with interest, while appropriating Rs.10,000/- to the State. The court clarified that this decision was based on the specific circumstances of the case and should not serve as a precedent. The appeal was disposed of with these directions.
Headnote
A) Criminal Law - Cheque Dishonour - Setting Aside Conviction - Negotiable Instruments Act, 1881, Section 138 - The court considered the unique circumstances of the case and the respondent's willingness to withdraw the complaint upon receiving the due amount. The court ordered the payment of Rs.1,90,000/- to the complainant and set aside the appellant's conviction, emphasizing that the decision was based on specific facts and should not be treated as a precedent. Held that justice was served by compensating the complainant (Paras 6-10).
Issue of Consideration
Whether the conviction under Section 138 of the Negotiable Instruments Act should be set aside based on the peculiar facts of the case.
Final Decision
The Supreme Court set aside the conviction of the appellant under Section 138 of the Negotiable Instruments Act, 1881, and directed the payment of Rs.1,90,000/- to the respondent-complainant, with interest, while appropriating Rs.10,000/- to the State.
Law Points
- Negotiable Instruments Act
- 1881
- Section 138
- cheque dishonour
- conviction
- fine
- payment to complainant
