SC Levies Exemplary Costs Of Rs. 1 Lakh For Delayed Settlement Of Cheque Bounce Case [Read Judgment]

The Supreme Court, on Monday, levied exemplary costs of Rs. 1 lakh on an Appellant, in view of the delayed settlement between the parties.

The Bench comprising Justice J. Chelameswar and Justice S. Abdul Nazeer directed payment of costs to an orphanage- Delhi Council for Child Welfare within four weeks.

The Appellant, Ms. P. Chandrakala was convicted for dishonor of cheque by the Metropolitan Magistrate, Hyderabad, and was sentenced to undergo imprisonment for a period of six months, along with payment of a fine of Rs. 500. Her Appeal before Hyderabad High Court and the subsequent Revision Petition was also rejected.

On an Appeal to the Supreme Court, the Appellant informed the Court that the matter had been settled between the parties and full payment was made to the Respondent during the pendency of the Revision Petition.

This was accepted by the Apex Court, which, thereby, set aside the lower Court judgment. It, however, ordered payment of compensation, observing, “We are of the view that since the appellant has wasted the public time, while setting aside the aforesaid orders, she should be burdened with exemplary costs, which we quantify at Rupees one lakh.”