Fine can’t exceed twice the value of bounced cheque: Karnataka HC | India News – The Times of India

BENGALURU: In a cheque bounce case, the Karnataka high court has ruled that trial courts cannot levy fines exceeding twice the dishonoured cheque amount.Justice V Srishananda made the observation while partly allowing an appeal filed by Mahadevi, an agriculturist from Banahatti in Bagalkot district. In Nov 2007, Mahadevi bought two trailers for Rs 3.8 lakh after she was allowed a Rs 5,000 discount. She issued a cheque for the trailers, but the cheque was dishonoured. Following this, the seller registered a cheque bounce case. On May 8, 2017, the magistrate’s court at Banahatti convicted her, directing her to pay Rs 7.6 lakh as compensation to the seller and Rs 5,000 as defraying expenses to state govt.Mahadevi’s appeal against the order was dismissed by the district court, and she moved the HC. She said the trailers had not been delivered to her, but Justice Srishananda noted Mahadevi had failed to establish her claim. The judge directed Mahadevi to pay Rs 7.6 lakh as compensation to the complainant, but set aside the order regarding Rs 5,000 to be paid towards defraying expenses, ruling that no state machinery was involved in the transaction.