Friday, 19 February 2021

Supreme Court guidelines on the grant of compensation in cheque dishonour case

  As regard to the claim of compensation raised on behalf of the

respondent, we are conscious of the settled principles that the object

of Chapter XVII of the NIA is not only punitive but also compensatory

and restitutive. The provisions of NIA envision a single window for

criminal liability for dishonour of cheque as well as civil liability for

realisation of the cheque amount. It is also well settled that there

needs to be a consistent approach towards awarding compensation and unless there exist special circumstances, the Courts should uniformly levy fine up to twice the cheque amount along with simple interest at the rate of 9% per annum. R. Vijian v. Baby, (2012) 1 SCC 260 ¶20. {Para 20}

 REPORTABLE

IN THE SUPREME COURT OF INDIA

CRIMINAL APPELLATE JURISDICTION

CRIMINAL APPEAL NO. 123 of 2021


M/s. Kalamani Tex & Anr  Vs P. Balasubramanian 

Author: Surya Kant, J:

DATED :10.02.2021.

Read full judgment here: Click here

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