Supreme Court of India · 2017-10-05

M/S METERS AND INSTRUMENTS PRIVATE LIMITED vs KANCHAN MEHTA

Citation / case number: SC 2017/21068
Court: Supreme Court of India
Petitioner: M/S METERS AND INSTRUMENTS PRIVATE LIMITED
Respondent: KANCHAN MEHTA
Author: HON'BLE MR. JUSTICE ADARSH KUMAR GOEL
Bench: HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE ADARSH KUMAR GOEL

Judgment text excerpt

The Supreme Court addressed the issue of compounding offences under Section 138 of the Negotiable Instruments Act, 1881, holding that consent from the complainant is necessary for compounding as established in JIK Industries Ltd. v. Amarlal Jumani (2012) 3 SCC 255. The Court reiterated that the objective of Section 138 is to enhance the acceptability of cheques while safeguarding against harassment of honest drawers. The appeals were dismissed as the High Court's refusal to allow compounding was upheld, emphasizing the need for complainant consent in such cases.