In a ruling that reshapes the treatment of cheque dishonour offences, the Supreme Court has declared that those convicted under Section 138 of the Negotiable Instruments Act can now claim the benefit of the Probation of Offenders Act, 1958.
The bench, led by Justices Manmohan and NV Anjaria, stressed that such cases often spring from business setbacks or short-term financial strain—circumstances that call for reformative measures rather than rigid punishment.
The Court clarified that while parties may settle matters through compromise under Section 147 of the NI Act, probation is also available when the accused pleads guilty on the Magistrate’s suggestion, even if the complainant presses for more than the cheque amount. In such situations, courts can invoke powers under the Cr.P.C., BNSS, or directly extend the protection of the Probation of Offenders Act.
Justice Manmohan, who authored the judgment, firmly set aside the Kerala High Court’s 2009 view in M.V. Nalinakshan v. M. Rameshan, which had shut probation’s doors to cheque dishonour offenders. By doing so, the apex court resolved a lingering conflict in law and underscored that financial missteps should not automatically translate into jail terms.
The decision, delivered in Sanjabij Tari v. Kishore S. Borcar & Anr., signals a more balanced approach: a system that acknowledges accountability but also extends a chance at rehabilitation instead of pushing offenders further into a cycle of punishment.