In Brief
Appellants, partners in an infrastructure company, were convicted under Section 138 of the Negotiable Instruments Act for dishonoring 64 cheques totaling Rs 9.40 crore issued as part of a partner's retirement settlement. The appellate court suspended their sentence on condition of depositing 25% of the compensation amount. The appellants challenged this condition, arguing amended Section 148 of the NI Act could not apply retrospectively to cases filed before September 2018. The Supreme Court upheld the condition, holding that Section 148 applies retrospectively to pending appeals to prevent delay tactics by cheque drawers, and that non-compliance with a conditional suspension of sentence results in vacation of that suspension.
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