Supreme Court Advocates for Offence Compounding in Cheque Bounce Cases

The Supreme Court has expressed concern over the high number of cheque bounce cases and endorsed the compounding of offences under the Negotiable Instruments Act if both parties agree. It overturned P Kumarasamy's conviction after he settled with the respondent, demonstrating the priority of a compensatory approach over punitive measures.

The Supreme Court has raised alarms over the backlog of cheque bounce cases, urging courts to promote the compounding of offences under the Negotiable Instruments Act when both parties are amicable to a compromise.

A bench comprising Justices Sudhanshu Dhulia and Ahsanuddin Amanullah annulled the conviction of P Kumarasamy in a cheque bounce case, recognizing a settlement where Rs 5.25 lakh was paid to the complainant.

The court emphasized that the compensatory aspect should take precedence over punitive measures in such matters, and advised judicial bodies to encourage settlements to reduce the strain on the judicial system.