Dishonor of Cheque - Ascertaining nature of transaction - ...

Criminal Proceedings for Dishonored Cheque Must Align with Civil Court Declarations, Court Clarifies Standards of Proof.

April 6, 2024

Case Laws     Indian Laws     SC

Dishonor of Cheque - Ascertaining nature of transaction - whether a criminal proceeding can be initiated and an accused held guilty when there is already a civil court decree concerning the same transaction - The Supreme Court acknowledges the conflicting nature of civil and criminal proceedings concerning the same issue and transaction. However, it emphasizes that the standard of proof and burden of evidence in civil and criminal cases are different. - the Supreme Court clarifies that while civil court decisions may have persuasive value, they are not binding on criminal courts, except for limited purposes such as sentence or damages. - the Supreme Court concludes that the criminal proceedings, including the conviction and damages imposed by lower courts, are unsustainable. It asserts that the criminal court must abide by the civil court's declaration regarding the nature of the cheque involved.

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