BOUNCED CHEQUE: CIVIL AND CRIMINAL LIABILITY CAN RUN SIMULTANEOUSLY

The Supreme Court has set aside the judgement of the Delhi High Court and ruled that in a case of bounced Cheque, both civil and criminal cases can go on at the same time. In this case, Vishnu Dutt vs. Daya Sapra, the drawer of bounced Cheque stated that her Cheque book was forcibly taken by a former policeman and used in lieu of a bribe in a property transaction. The criminal court believed it and acquitted her of the charge of issuing Cheque without sufficient funds in the bank account. However, she was sued for repayment of the loan. She argued that since the criminal court had acquitted her, the civil suit for recovery of the loan could not stand. The high court accepted this contention, but the Supreme Court quashed the high court decision, stating that the civil suit for recovery of loan would continue even if she was acquitted under Section 138 of the Negotiable Instruments Act.