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2022 (6) TMI 296 - HC - Indian LawsDishonor of Cheque - power to trial court to impose fine / penalty upto double of the amount of cheque - appellate court reduced the penalty equal to cheque amount - Section 138 of the Negotiable Instruments Act, 1881 - HELD THAT:- The trial court after finding the accused guilty for the offence under Section 138 NI Act had imposed a substantive sentence of imprisonment till rising of the court and fine of Rs. 7,02,500/- and to undergo simple imprisonment for four months as default sentence. In a prosecution under Section 138 NI Act the trial court is empowered to sentence the accused to imprisonment upto two years or with fine upto twice the amount of the cheque or with both. The amount covered by Ext. P1 cheque being Rs. 5,00,000/-, the trial court is empowered to direct payment of compensation, double that amount. Rs. 7,02,500/- is the fine imposed in the case on hand and the trial court is justified in doing so. The appellate court has modified the sum to Rs. 5,00,000/-, but, without stating any reasons for doing so. The modification made by the appellate court in the fine amount is set aside. The sentence imposed by the trial court with the modified term of default sentence for two months is restored. Therefore, the accused has to serve imprisonment till rising of the court and pay fine of Rs. 7,02,500/- as substantive sentence and to serve simple imprisonment for two months as sentence in case of default in payment of fine.
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