Authority: Supreme Court of India
Order Date: 24-08-2026
Case Overview
- Petitioners: J. SARAVANAN (petitioner) vs. M/S. HANDMADE FILMS (respondent).
- The petitioner was convicted by a learned Magistrate under Section 138 of the Negotiable Instruments Act, 1881 and sentenced to two years simple imprisonment.
- He was also ordered to pay compensation of Rs 5,00,00,000 (Five Crore Rupees) within two months, with a default stipulation.
- An appeal against this conviction is pending before the XXI Additional Sessions Court at Allikulam, Chennai.
- The Appellate Court, on a petition for suspension of sentence, ordered on 30.03.2026 that the sentence be suspended provided the petitioner deposits 20% of the compensation (Rs 1 crore) within 30 days.
- Dissatisfied with this condition, the petitioner approached the High Court of Madras, which on 28.04.2026 modified the condition, directing payment of 20% of the cheque amount i.e., Rs 50,00,000, of which Rs 10,00,000 must be paid on or before 01.06.2026.
- The Supreme Court, after hearing counsel, considered that formal notice was unnecessary and granted the petitioner an additional 30‑day period from the date of the order to deposit the Rs 10,00,000 before the Trial Magistrate, as directed by the High Court.
Final Outcome
- The Special Leave Petition (Crl.) No. 14825/2026 is disposed of.
- The petitioner is given a further 30‑day extension to deposit Rs 10 lakh before the Trial Magistrate.
- Any pending applications, if any, are also disposed of.
- The order is digitally signed by Justice Ujjal Bhuyan and Justice Atul S. Chandurkar on 25‑08‑2026.
Topics: Legal Dispute, Cheque Bounce, Compensation Payment