News Tags: SC ruling on cheque bounce case

In a landmark decision, the Supreme Court of India overturned a cheque dishonor conviction based on a civil court ruling. This article explains the limited situations where civil judgments, like those involving Section 138 NI Act disputes, can influence criminal cases. Read to understand the case background, Supreme Court’s reasoning on the conflict of decisions, and the impact of the ruling. Learn about the interplay between civil and criminal proceedings in India. Supreme Court Overturns Cheque Dishonour Conviction Based on Civil Court Ruling New Delhi – April 2 In a landmark decision, the Supreme Court on Tuesday set aside a conviction for cheque dishonour under Section 138 of the Negotiable Instruments Act. The ruling highlights the limited circumstances under which civil court judgments can influence criminal proceedings. Background of the Case: Cheque bounce overturned The case involved a dispute over a cheque issued by the appellant (accused) to the complainant (respondent). The appellant filed a civil suit to prevent the encashment of the cheque, claiming it was only meant as security. Meanwhile, the complainant initiated criminal proceedings under Section 138 for cheque dishonour. The appellant was found guilty by the lower courts and sentenced to one year imprisonment with a fine of Rs. 2 lakhs. Supreme Court’s Reasoning: The Supreme Court clarified that while civil and criminal proceedings are independent, a civil court’s decision can impact the criminal case in specific instances like sentencing or damages. In this case, the civil court had declared the cheque as security, making the […]