In Brief
M/s Ganga Bhavani Constructions was convicted under Section 138 of the Negotiable Instruments Act for issuing a cheque that was dishonored with the endorsement "payment stopped by drawer." The appellant was sentenced to one year imprisonment, affirmed by the High Court. The Supreme Court, however, allowed the appeal on the ground that the parties reached a valid compromise, with the creditor confirming receipt of the full amount of Rs. 10 lakhs. Accordingly, the conviction and sentence were set aside, the appellant was acquitted, and the amount deposited before the trial court was ordered to be refunded."
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