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Supreme Court Of India

(From : Madras)*

Hon'ble Judge(s): Satya Brata Sinha, Markandeya Katju , JJ

Negotiable Instruments Act (26 of 1881) , S.138— Criminal P.C. (2 of 1974) , S.357— Dishonour of cheque - Compensation instead of substantive sentence of fine - When can be awarded - Alleged withdrawal of money from joint account by respondent-partner after dispute arising with appellant-partner - Cheque issued by respondent pursuant to compromise was dishonoured - Respondent had admitted his liability to the extent of Rs. 7 lakhs - Cheque had been issued in discharge of debt - Plea by accused that he signed cheque under threat - Not tenable - Culpability of accused was established - However, there was no charge of fraudulent action against him - He also had probable defence as accounts were yet to be settled - In circumstances, grant of compensation of Rs. 7 lakhs instead of fine of Rs. 5,000/- would be proper. (Para 20 21 24 25)