SUGANTHI SURESH KUMAR vs JAGDEESHAN

The Supreme Court held that under Section 138 of the Negotiable Instruments Act, the trial Magistrate has the discretion to impose adequate punishment and should consider invoking Section 357(3) of the Code of Criminal Procedure for compensation to the complainant. The Court emphasized the need for liberal use of Section 357(3) to ensure that the complainant is not left with inadequate compensation, as highlighted in previous rulings such as K. Bhaskaran v. Sankarna Vaidhyan Balan and Hari Singh v. Sukbir Singh. The Court ultimately directed that trial Magistrates must keep in mind the object of providing stringent punishment and the guidelines established in prior judgments, reinforcing the importance of adequate compensation in cases of dishonoured cheques.