R. Vijayan vs Baby & Anr

The Supreme Court addressed the interplay between Section 138 of the Negotiable Instruments Act, 1881 and Section 357 of the Code of Criminal Procedure, 1973. It held that compensation under Section 357(3) can be awarded in cases of cheque dishonour, and that the High Court erred in not restoring the compensation order alongside the fine. The Court emphasized that both provisions should be read harmoniously, allowing for compensation to meet losses from dishonoured cheques, and thus restored the direction for payment of Rs.20,000 as compensation to the appellant.