Check Bounce Cases

Cheque Bounce Case: The Supreme Court has held that the accused shall deposit 20 per cent of the amount in question to appeal against order in a cheque bounce case. The apex court Bench of Justices Ashok Bhushan and MR Shah has also reiterated that Section 148 of the Negotiable Instruments Act can be applied with retrospective effect. Under this section, courts can order defaulters to deposit an amount during pendency of a cheque bounce case.
The Case :The appellants in the case were partners in an infrastructure company. The Respondent No.1 was also a partner of the firm. When the respondent retired, a check of Rs 45,84,915 was issued to him by the firm against the part payment of the retirement dues. As many as 63 other cheques were issued by the appellant in favour of the respondent. All of these cheques were dishonoured. The respondent filed 28 complaints under Section 138 of the NI Act before the Judicial Magistrate, Ist Class, Panchkula, which held the appellants “guilty for the offence punishable under Section 138 of the NI Act.