Authority: High Court of Judicature at Madras
Order Date: 14 August 2026
Case Overview
- Petitioner: V.P. Sathish Kumar, Proprietor of M/s. Akshayam Abodes, Chennai.
- Respondent: N. Latha, daughter of K. Natesan, Chennai.
- The dispute arises from a conviction under Section 138 of the Negotiable Instruments Act for a dishonoured cheque (S.T.C. No.3830 of 2022).
- The learned XXXVIII Metropolitan Magistrate, Fast Track Court‑V, Saidapet, sentenced the petitioner to nine months simple imprisonment and ordered payment of compensation equal to the cheque amount, Rs 71,00,000, with interest at 3% per annum from the date of dishonour, and an additional three months imprisonment for default in payment.
- The petitioner appealed (C.A. No.650 of 2026) and sought suspension of the sentence. The appellate court, on 6 May 2026, suspended the imprisonment on condition that the petitioner deposit 20% of the compensation amount (Rs 14,20,000) within 60 days and obtain bail on a bond of Rs 10,000 with two sureties.
- The petitioner filed a Criminal Original Petition (Crl.O.P. No.18240 of 2025) under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023, requesting the High Court to reduce the 20% deposit requirement, citing the Supreme Court’s view that the deposit can be reduced in exceptional cases.
Final Outcome
- The High Court, after hearing counsel, found no exceptional circumstance warranting a reduction of the 20% deposit and therefore upheld the appellate condition.
- However, the Court extended the time for compliance, directing the petitioner to make the deposit on or before 21 August 2026.
- The Criminal Original Petition and the connected miscellaneous petition were disposed of, closing the proceedings.
Topics: Legal Procedure, Cheque Bounce, Compensation Deposit