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Thursday, May 6, 2010

CHEQUE BOUNCING GUIDELINES

SC GUIDELINES
TO
SETTLE CHEQUE-BOUNCE CASES
The Supreme Court of India has issued guidelines for encouraging quick settlement of cheque bounce cases, stipulating graded penality ranging from 0-20 per cent of cheque amount, depending upon delay.
If the accused made an application compounding the offences at the first or the second hearing of the case, the trial court would allow it without imposing any costs, a three-member Bench headed by Chief Justice KG Balakrishanan ruled.
The magistrate concerend would impose a penality of 10 per cent on any request made after the second hearing. Similarly, if the application for compounding is made before a sessions court or a High Court in revision or appeal, the accused would have to pay 15 per cent of the cheque amount by way of costs.
At the Supreme Court level the penality would be 20 per cent, the Bench, which included Justice P.Sathasivam and JM Panchal, said. The guidelines issued in view of a legal vacuum on the subject were also aimed at facilitating quick disposal of 30 lakh cheque-dishonour cases pending in various courts.
Source: The Tribune May 6, 2010.

1 comment:

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