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Kerala High Court Upholds Conviction in Cheque Dishonour Case, Modifies Sentence

LAW FINDER NEWS NETWORK | May 21, 2026 at 9:10 AM
Kerala High Court Upholds Conviction in Cheque Dishonour Case, Modifies Sentence

Court rules procedural irregularities did not cause a failure of justice; reduces imprisonment term to time served in court.


In a recent ruling, the Kerala High Court upheld the conviction of Kannan in a case involving the dishonour of cheques under Section 138 of the Negotiable Instruments Act, 1881. The judgment, delivered by Justice G. Girish, also modified the sentence originally imposed by the lower courts.


The case stemmed from the dishonour of two cheques, amounting to Rs. 19,75,000 and Rs. 10,00,000, issued by Kannan to M/s.Adisiva Enterprises. The petitioner challenged the concurrent findings of guilt and the six-month simple imprisonment sentence handed down by the Chief Judicial Magistrate Court, Kollam, and subsequently upheld by the Additional Sessions Court-VI, Kollam. 


A significant point of contention was the procedural irregularity in the complaint, which was initially filed by the power of attorney holder of the complainant without direct personal knowledge of the transactions. The revision petition argued that this irregularity should have invalidated the trial. However, the High Court observed that the complainant himself later adduced evidence during the trial, which remedied any initial procedural shortcomings. The court found that this did not result in a failure of justice, as per Section 465 of the Code of Criminal Procedure.


Justice Girish noted that the petitioner had ample opportunity to cross-examine the complainant and failed to challenge the procedural aspects at an earlier stage. Citing the Supreme Court's judgments in similar cases, the court emphasized that procedural errors should not automatically vitiate a trial unless they lead to a miscarriage of justice.


While upholding the conviction, the High Court modified the sentence, reducing it from six months of simple imprisonment to imprisonment till the rising of the court, considering the nature and gravity of the offence. The court retained the directions for payment of Rs. 29,50,000 as compensation to the complainant and the default clause of additional imprisonment for non-payment.


This decision underscores the judiciary's nuanced approach in balancing procedural integrity with substantive justice, ensuring that technicalities do not overshadow the essence of justice.


Bottom line:-

Negotiable Instruments Act - Dishonour of cheques - Conviction under Section 138 upheld despite procedural irregularity in the complaint filed by power of attorney holder of the complainant, as the complainant later appeared and adduced evidence during trial. Sentence modified to imprisonment till the rising of the Court.


Statutory provision(s): Negotiable Instruments Act, 1881 Section 138, Code of Criminal Procedure Section 357(3), Code of Criminal Procedure Section 465


Kannan v. M/s.Adisiva Enterprises, (Kerala) : Law Finder Doc id # 2900813

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