Section 357(3) of the Code of Criminal Procedure, 1973 in India gives the discretion to the Court to order the accused person to pay compensation to the person who suffered loss by reason of the act of the accused. This provision is used also with cases in Negotiable Instruments Act when the cheque given by the accused bounces and he is found guilty.
Now the honourable Supreme Court of India has expressed its recommendation to the lower courts that it is always desirable to award compensation to the complainants in cheque bounce cases. A Bench comprising of Honourable Mr.Justices H.L.Dattu and P.Sathasivam has passed the judgement in this regard.
The provision has been a least noted one by the trial courts. The Court expressed that merely sending the accused to jail will not serve the real purpose of criminal justice system. The provision provides to impose the compensation in addition to punishment. So this can be safely used. Furthermore, the use of such power will be much reasonable in cheque cases.
The case arised when one K.A.Abbas filed an appeal against the order of the High Court to deposit the compensation to hear the appeal against the trial court Order.The complainant Sabu Joseph has a judgement in his favour in which the payment of compensation is also awarded in addition.

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