Ruled in favour of Sasikala Gothandaraman (Petitioner)
In Short
A woman who borrowed five lakh rupees faced a ten-month jail sentence after her cheques bounced due to insufficient funds. While her case was pending in the High Court, she and the lender reached a compromise agreement to settle the dues for a lesser amount. The High Court accepted this settlement, allowing both parties to close the matter peacefully.
The Parties
Party A: Sasikala Gothandaraman
Party B: Sampath
Advocates & Judges
For Party A: Learned Advocate Mr. C.Shanmugasankar Bhanu
For Party B: Learned Advocate Mr. S.Mohamed Uduman
Judge(s): Hon'ble Justice Shamim Akhter
What the Case Was About
The petitioner had borrowed a loan of five lakh rupees back in 2018. To repay this debt, she gave two cheques in 2021, but both bounced because her bank account did not have enough money. The lender filed a legal complaint under the Negotiable Instruments Act. A trial court found her guilty, sentenced her to ten months in prison, and ordered her to pay four lakh rupees as compensation. A sessions court later agreed with this decision. Desperate to avoid prison, the petitioner took the matter to the High Court while having deposited some money along the way.
Judgment Date
02-11-2026
The Outcome
The court recorded the out-of-court settlement between the parties and disposed of the revision case accordingly, freeing the petitioner from the earlier sentence as the matter was fully resolved.
What the Court Looked At
- The trial court originally convicted the petitioner and ordered ten months of simple imprisonment along with compensation.
- The lower appellate court reviewed the case and confirmed the conviction and sentence.
- During the High Court proceedings, both parties signed a written settlement agreement to resolve the dispute for three lakh rupees.
- The petitioner already paid parts of the settlement through digital transfers and cash, while the lender agreed to withdraw deposited funds from the trial court.
- The lender gave full consent to close the offence under the relevant section of the Negotiable Instruments Act.
"The parties hereto state that all disputes and differences in this regard have been amicably settled by the parties hereto."
What This Means For You
Getting convicted in a cheque bounce case does not automatically mean all doors are shut forever. In this case, the borrower managed to avoid going to jail by negotiating directly with the lender and clearing a mutually agreed reduced amount before the High Court finalized its strict verdict. However, waiting until the very last stage—after losing in both the trial court and the sessions court—means you will waste a lot of time, stress, and money fighting through multiple levels of the judiciary. If you find yourself tangled in a financial dispute, talking to the other side early on can save you from a severe prison sentence. Setback Solutions can help you understand your options and coordinate next steps when you are trapped in a stressful financial dispute.
You Still Have Options
If you are facing a sudden conviction or a bounced cheque case and feel like you are out of options and money, do not panic just yet. Many people find themselves trapped in legal battles over unpaid debts without knowing how to negotiate a safe exit. You can still explore options like seeking a second opinion, evaluating your legal representation, or working out a delayed settlement outside the courtroom. Reach out to Setback Solutions for help understanding your options and coordinating the next step. Please remember that Setback Solutions is not a law firm and does not give legal advice or guarantee any result, but we can help you figure out your plain-language options.