In Brief
A.T. Sivaperumal was accused of issuing a cheque for Rs. 10,22,419 as repayment of a loan, which was dishonoured with the endorsement "account closed." The trial court acquitted him, but the High Court reversed this and convicted him under Section 138 of the Negotiable Instruments Act, imposing a fine of Rs. 11,00,000. The Supreme Court, on the appellant's special leave petition, facilitated an amicable settlement between the parties for Rs. 6,00,000 (including Rs. 3,00,000 already deposited). The Court set aside the High Court's conviction and allowed the appeal, requiring the appellant to pay the remaining Rs. 3,00,000 within three months.
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