Anilkumar Manohar Devadhar v. Praveen Adivayya Hiremath, 2026 INSC 452 - S.138 NI Act
Negotiable Instruments Act 1881 - Section 138 - No legal aspects discussed in this judgment - The respondent issued two cheques of Rs. 2,00,000 and Rs. 50,00,000 to the appellant, which were dishonoured, leading to his conviction under Section 138 of the Negotiable Instruments Act with a sentence of two years’ imprisonment and fines equal to double the cheque amounts, as upheld by the appellate court. The Karnataka High Court, in revision, reduced the sentence to payment of only the cheque amounts without imprisonment or interest, which the Supreme Court found to be wholly perverse and manifestly erroneous, and therefore set aside.
Case Info
Case Information
Case name and neutral citation:Anilkumar S/o Manohar Devadhar v. Praveen S/o Adivayya Hiremath, 2026 INSC 452
Coram:Justice Dipankar Datta and Justice Satish Chandra Sharma
Judgment date:13 April 2026 (New Delhi)
Statutes / laws referred:
- Section 138, Negotiable Instruments Act, 1881
Three-sentence brief summary
The respondent issued two cheques of Rs. 2,00,000 and Rs. 50,00,000 to the appellant, which were dishonoured, leading to his conviction under Section 138 of the Negotiable Instruments Act with a sentence of two years’ imprisonment and fines equal to double the cheque amounts, as upheld by the appellate court. The Karnataka High Court, in revision, reduced the sentence to payment of only the cheque amounts without imprisonment or interest, which the Supreme Court found to be wholly perverse and manifestly erroneous, and therefore set aside. Recording a settlement proposal, the Supreme Court granted the respondent time till 31 August 2026 to pay Rs. 45,00,000 to the appellant in full and final settlement, with liberty to the appellant to seek revival of the appeals and possible imprisonment if payment is not made.