If a person convicted for issuing a cheque without balance in his bank account is ordered to pay compensation to the payee, he can be sentenced to imprisonment under Section 357(3) of the Criminal Procedure Code, the Supreme Court has held in the case, K A Abbas Vs Sabu Joseph. In this case, the court asked the drawer to pay Rs 5 lakh as compensation for issuing a cheque which bounced.
The drawee did not pay. So he was sentenced to two months more for the default. The Kerala high court reduced it to imprisonment till the rising of the court. Both parties appealed to the Supreme Court, the payee arguing that the sentence was minimal. The court ruled that sentence of imprisonment can be imposed in such cases.