Trial Court Must Assign Special Reasons For Imposing Double The Cheque Amount As Fine In Cheque Dishonour Cases: Karnataka High Court

The Karnataka High Court ruled that special reasons are necessary to impose double fines in cheque bounce cases under Section 138 of the Negotiable Instruments Act. The court emphasized that higher penalties should be justified and not arbitrary. This decision ensures fairness in the imposition of fines and protects individuals from excessive punitive measures. The ruling aims to balance the interests of creditors and debtors while maintaining the integrity of financial transactions.