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Anil Kumar v. Praveen

Criminal Appeal · 2026 INSC 452Decided 13 Apr 2026
Crl.A. No.-001960-001961 - 2026
Justice Dipankar Datta · Justice Satish Chandra Sharma

Background

The respondent had issued two cheques to the appellant, for Rs. 2,00,000 and Rs. 50,00,000, both of which were dishonoured. The trial court convicted the respondent under Section 138 of the Negotiable Instruments Act and sentenced him to two years' imprisonment along with a fine of double the cheque amounts; this conviction was upheld on appeal. However, the Karnataka High Court, exercising what it wrongly treated as appellate (rather than revisional) power, modified the sentence to require only repayment of the cheque amounts, with no prison term and no interest: effectively letting the respondent off without real punishment ten years after the cheques bounced. The appellant-complainant challenged this before the Supreme Court as unjust.

Decision Breakdown

The Supreme Court found the High Court's order "prima facie perverse and erroneous," noting the respondent's own counsel could not defend it. Rather than deciding the matter purely on legal merits, the Court used several hearings to press the respondent toward an out-of-court settlement, ultimately recording the respondent's undertaking (through counsel) to pay Rs. 45,00,000 in full and final settlement by 31 August 2026, which the appellant agreed to accept. The Court set aside the High Court's "wholly perverse and manifestly erroneous" judgment and allowed the appeals, while making clear that if the respondent failed to pay as promised, the appellant could apply to revive the appeals, at which point the Court would consider sending the respondent to prison outright.

Lesson Learnt

A High Court exercising revisional jurisdiction in a Section 138 cheque-bounce case cannot simply let a convicted accused off with mere repayment of the cheque amount and no penal consequence; the Supreme Court will correct such leniency, and a settlement reached under the Court's supervision carries the explicit threat of imprisonment if not honoured.

Official source (sci.gov.in)View Judgment (PDF)

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