Cheque bounce case fine imposed – whether paid to complainant?

[Anonymous]

Section 138 of the Negotiable Instruments Act says that in a cheque bounce case, a fine which may extend to twice the amount of cheque may also be imposed? Whether this fine can be paid or is paid to the complainant to compensate him for the amount of cheque which was dishonoured?

[Dr. Ashok Dhamija]

Yes, on many occasions, the whole or part of the fine amount imposed on accused in a cheque bounce under Section 138 of the Negotiable Instruments Act is awarded to the complainant to compensate him for the cheque amount.

There is a specific provision in the Criminal Procedure Code that when a Court imposes a sentence of fine, the Court may order the whole or any part of the fine recovered to be applied, inter alia, in the payment to any person of compensation for any loss or injury caused by the offence, when compensation is, in the opinion of the Court, recoverable by such person in a Civil Court.

So, whole or part of the fine amount imposed on accused in cheque bounce is generally paid as compensation the complainant for the cheque amount. It generally also obviates the need for filing a civil suit by the complainant for recovery of such amount.

     

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Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.

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