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SANJABIJ TARI v. KISHORE S. BORCAR & ANR.

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0.95Score Supreme Court of India 25-09-2025 Manmohan, J., N.V. Anjaria, J.
Why this case matters
This judgment issues revised guidelines for compounding and sentencing in Section 138 NI Act cases, modifying earlier frameworks to encourage early settlement and reflect changed economic circumstances. (see page 10)
Issues
01 What sentencing and compounding framework (including graded costs/percentages and probation considerations) should apply in Section 138 NI Act cases given changed circumstances (e.g., fall in interest rates) and the objective of ensuring payment and credibility of cheques.
Key Points
01 The Court revisits and modifies earlier compounding guidelines to reflect changed economic circumstances and to incentivise early settlement, reducing judicial burden. The revised scheme prescribes that payment of the cheque amount before defence evidence permits compounding without costs; post-evidence but pre-judgment compounding attracts an additional 5%; compounding in Sessions/High Courts and the Supreme Court attracts 7.5% and 10% respectively, with ancillary directions on probation and plea options where full settlement is sought. The framework is designed to encourage payment and preserve the cheque's credibility while retaining judicial discretion to tailor orders to case specifics.
Decision
The modified graded compounding and sentencing framework set out by the Court (no cost if paid early; incremental percentages thereafter; probation options) shall apply to Section 138 NI Act cases.
My note
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2025 INSC 1158
REPORTABLE
IN THE SUPREME COURT OF INDIA
CRIMINAL APPELLATE JURISDICTION
CRIMINAL APPEAL NO. 1755  OF 2010
SANJABIJ TARI..… APPELLANT
VERSUS
KISHORE S. BORCAR & ANR...…RESPONDENTS
J U D G M E N T
MANMOHAN, J.
1. The present Appeal has been filed challenging the ex-parte judgment and order dated 16th April 2009 passed by the High Court of Bombay at Goa acquitting the Respondent No.1-Accused under Section 138 of the Negotiable Instruments Act, 1881 (for short 'NI Act') and reversing the concurrent judgments of the Trial Court and the Sessions Court.
ARGUMENTS ON BEHALF OF APPELLANT-COMPLAINANT
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