Supreme Court Has Laid Down -Guidelines On Compounding Of Offence Under 138 Of NI ACT, 1881


Quick Summary
The Supreme Court has issued new guidelines for handling offences under Section 138 of the Negotiable Instruments Act, 1881. The court emphasised that these offences are primarily civil in nature, aiming for compensation rather than punishment. It encourages compounding of cases, even at later stages, provided the complainant is adequately compensated. The court also outlined a summary procedure for trials, encouraging early resolution and potentially avoiding lengthy court proceedings.

Court :
Apex Court

Brief :
These appeals have been preferred against the order of the High Court of Punjab and Haryana where the High Court rejected the prayer of the appellants for compounding the offence under Section 138 of the Negotiable Instruments Act, 1881 (the Act) on payment of the cheque amount and in the alternative for exemption from personal appearance.

Citation :
Criminal Appeal No. 1731-33 of 2017

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