In Brief
The Supreme Court allowed a criminal appeal challenging a High Court's acquittal of an accused under Section 138 of the Negotiable Instruments Act (cheque bouncing). The appellant-complainant had lent Rs. 6 lakh to the accused, who issued a cheque that bounced. The Trial and Sessions Courts had convicted the accused, but the High Court set aside the conviction. The Court held that once a cheque's execution is admitted, statutory presumptions of a legally enforceable debt arise against the accused. The accused failed to rebut these with credible evidence. The Court also issued comprehensive guidelines to address the massive backlog of Section 138 cases and revised compounding guidelines to encourage early settlement, with digital payment portals, modified service procedures, and structured summons formats.
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