Mohammad Ali vs Sharanappa - S.138 NI Act - Fine & Compensation

Negotiable Instruments Act 1881 -Section 138 ; Code of Criminal Procedure 1973 - Section 357 - Section 138 of the Act authorises the learned Magistrate to impose by way of fine an amount which may extend to twice the amount of cheque, with or without imprisonment. In all such cases, where there is a conviction, there should be a consequential levy of fine of an amount sufficient to cover the cheque amount. There could also be interest on the cheque amount, followed by award of such amount as compensation from the fine amount- Referred to R. Vijayan vs. Baby, (2012) 1 SCC 260.