SRI SUJIES BENEFIT FUNDS LIMITED versus M. JAGANATHUAN
The Supreme Court restored the Trial Court's conviction and sentence, holding that a cheque issued for discharge of loan and returned with endorsement 'Account Closed' attracts liability under Section 138 N.I. Act; discrepancies in stated rates of interest (1.8% v. 3% per month) were insufficient to displace the appellant's claim, and the Appellate Court and High Court erred in acquitting the respondent on that basis; the respondent was held liable to pay one and a half times the cheque amount (Rs.28,50,000) and imprisonment was waived subject to payment within eight months.
Source excerpt
- Section 138 n.i. act
- Dishonour of cheque 'account closed'
- Interest rate dispute
- Tamil nadu prohibition of charging exorbitant interest act, 2003
- Additional evidence under section 391 crpc