Bounced cheque fine can't be more than double

The Honorable Supreme Court has held that courts can not impose a fine more than double the amount of cheque in the case of bounced cheques. The court said that this limit is invoidable and must be respected.

"First and foremost is the fact that the power to levy fine is circumscribed under the statute to twice the cheque amount. 

Court held that even in the case of the accused favored for non imprisonment, the fine can not be more than double. 

In a recent case, Calcutta High court ordered to pay 149500 as against the bounced cheque of Rs. 69500. In this case, the trail court has sentenced six months imprisonment with Rs. 80000 compensation. The accused approaches to Calcutta high court where imprisonment weived and guide to pay an additional 69500 Rs. as compensation.

Accused moved a mercy plea before the Supreme court that he is unable to pay the amount. Court set aside High court order and reduced the amount from 69500 to Rs. 20000. 

"The High Court has, in the case at hand, obviously overlooked the statutory limitation on its power to levy a fine," the bench said 

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About Nitin Aggarwal

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