Cheque Bounce Cases: Sections 138 and 147 of the Negotiable Instruments Act, 1881 Explained; Guidelines Issued on Compounding of Offences: Supreme Court

In a landmark judgment, the Supreme Court has laid down important guidelines regarding the settlement of cheque bounce cases under Section 138 of the Negotiable Instruments Act, 1881. The Court held that although cheque dishonour cases can be settled at any stage under Section 147 of the Negotiable Instruments Act, 1881, parties should resolve disputes as early as possible to reduce unnecessary litigation and the burden on courts. Background of…