S.R. SUNIL & CO. vs D. SRINIVASAVARADAN

The Supreme Court emphasized that the bouncing of a cheque is a serious offense under Section 138 of the Negotiable Instruments Act, necessitating a sentence that reflects the gravity of the situation. The Court noted that despite the principal amount being paid, the accused failed to pay the promised interest, leading to a prolonged delay of 15 years without any effort to settle the matter. Consequently, the Court imposed a fine of Rs. 5,38,425/- and a default sentence of two years simple imprisonment if the payment is not made by the end of March 2011.