In Brief
A seller was convicted under Section 138 of the Negotiable Instruments Act for issuing a cheque for ₹8,53,531.51 that was dishonoured following cancellation of a property sale agreement. The trial court sentenced him to one year imprisonment and a fine of ₹11,50,000. The High Court upheld the conviction. However, when the matter came before the Supreme Court, both parties filed a joint settlement agreement dated 11-11-2017, agreeing that the seller would pay ₹8,50,000 to the purchaser within 60 days. The Supreme Court accepted the settlement, set aside the High Court's order, quashed the sentence, and disposed of the appeal.
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