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SC says you can pay up to avoid jail in cheque bounce case
Big update from the Supreme Court this week—if you're convicted for a bounced cheque under Section 138, you can now avoid jail by settling up with the person who filed the complaint.
The judges described these cases as "primarily a civil wrong" and said that once both sides agree and settle, the conviction can be wiped out under Section 147.
Court's ruling on personal disputes
The court highlighted that cheque bounce disputes are personal and should be resolved if both parties are on board.
If you pay back what's owed and reach a deal, even past convictions can be overturned.
This new ruling also undoes an earlier decision from Punjab and Haryana High Court that didn't allow this kind of escape route.