In Brief
In this criminal appeal, the Supreme Court set aside the High Court's conviction of the accused-appellant under Section 138 of the Negotiable Instruments Act for cheque dishonour. The High Court had reversed an earlier acquittal but failed to consider the accused-appellant's valid defence under the Goa Money-Lenders Act, 2001, which prohibited the complainant from prosecuting as he operated an unlicensed money-lending business. Since the accused-appellant had already paid the full cheque amount of Rs. 2,00,000 and compensation of Rs. 30,000, the Court exercised its constitutional power to compound the offence and acquitted him, subject to ensuring the complainant receives the paid amount.
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