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ARTICLE · 20 JULY 2023

Cases Of Cheque Dishonour Can Be Compounded On Fair Compensation To The Complainant

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In 2012, a two judge bench of the Supreme Court ("SC") in the case of JIK Industries Limited and Ors. Vs. Amarlal V. Jumani and Anr. [(2012) 3 SCC 255] observed that...

IndiaLitigation, Mediation & Arbitration

Case Reported:

Smt. Rani Gaur Vs. State of U.P. and 4 Others [Criminal Revision No. 2047/2023]

Court:

The Allahabad High Court

Case Referred:

JIK Industries Limited and Ors. Vs. Amarlal V. Jumani and Anr. [(2012) 3 SCC 255] and
Meters and Instruments Pvt. Ltd. and Anr. Vs. Kanchan Mehta [(2018) 1 SCC 560]

Ratio:

Cases of cheque dishonour under Section 138, Negotiable Instrument Act, 1881 can be compounded by the Court, without direct consent of the Complainant, if the Accused offers a compensation to the Complainant that is just and fair in the opinion of the Court

Judgement date:

May 24, 2023

Act/Law:

Negotiable Instrument Act, 1881 ("NI Act") and Code of Criminal Procedure, 1973 ("Cr.P.C")

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