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IN THE HIGH COURT OF CHHATTISGARH
Shri Justice Sanjay K. Agrawal, J
Raj Agrawal S/o N.l. Agrawal – Appellant
Versus
State Of Chhattisgarh Through District Magistrate Korba – Respondent
Order :
(Sanjay K. Agrawal, J.)
1. The short question involved in this batch of criminal revisions filed under Section 397 read with Section 401 of the Code of Criminal Procedure (for short the “CrPC”) is:
“whether the criminal Court and the appellate Court are justified in granting compensation to the extent of Rs.2,00,000/-, which is more than the cheque amount i.e. Rs.15,52,985/-, in exercise of power conferred under sub-section (3) of Section 357 of CrPC ?
2. The aforesaid question of law arises for consideration on the following factual backdrop:
2.1 It is the case of complainant- Heetanand Agrawal (hereinafter referred to as the “complainant”) that accused- Raj Agrawal (hereinafter referred to as the “accused”) issued a cheque bearing No.60744 for an amount of Rs.15,52,985/- on 05.10.2009 in token of his liability to him, which stood dishonored on 13.10.2009 on account of insufficiency of funds. Thereafter, the complainant firstly served legal notices to the accused on 21.10.2009 & 10.11.2009 and, ultimately, he filed criminal complaint under Section 138 of the Negotiable Instruments Act, 1881 (for short the “NI Act”) on 10.12.2009, in which, the accused took a defence that the am
Compensation under Section 357(3) of CrPC must be reasonable and not exceed the actual loss suffered, aligning with the cheque amount in dishonor cases.
The main legal point established in the judgment is that in cases of conviction under Section 138 of the Negotiable Instruments Act, unless there are special circumstances, fine up to twice the chequ....
A single complaint is maintainable for multiple dishonoured cheques issued on the same cause of action, as established by the Supreme Court.
The court emphasized the need for uniformity in compensation for cheque dishonour cases, affirming that compensation should reflect the cheque amount and interest, as established in prior Supreme Cou....
(1) Reasons – Reasons are obvious inasmuch as if a cheque gets dishonored, the payee will suffer hardship in meeting his financial commitments. (2) Object and Reasons – The prime object of enacting t....
(1) Reasons – Reasons are obvious inasmuch as if a cheque gets dishonored, the payee will suffer hardship in meeting his financial commitments. (2) Object and Reasons – The prime object of enacting t....
The compensatory aspect is paramount in Section 138 cases, and trial courts must ensure adequate compensation to complainants while exercising discretion in sentencing.
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