SUPREME COURT EXPLAINS: ARE CIVIL COURTS' DECREES BINDING ON CRIMINAL COURTS

The Supreme Court in the case Prem Raj Versus Poonamma Menon And Anr. observed that though the outcome of the proceedings initiated under civil law would not have any binding effect on the outcome of the proceedings which are being initiated under criminal law, thus, the outcome of the civil proceedings would be binding on the criminal proceedings initiated only to the extent of holding the sentences or damages arising out of criminal proceedings as unsustainable in law.

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The bench comprising of Justice Sanjay Karol and Justice Aravind Kumar in the case observed and has stated that when the substance of the dispute is the same in civil and criminal proceedings, then the outcome of the civil proceedings which are initiated shall be binding on the outcome of the criminal proceedings to make sentences or damages awarded in criminal proceedings unsustainable under the law. The judgement of the case came in the case with the following facts:

Mr. X gives a cheque amounting to Rs. 2 Lakhs to Mr. Y in the form of security which being for the payment of an outstanding debt. In the matter, the encashment cheque was dishonored with ‘funds insufficient’ when encashed. On the other hand, Mr. X initiated a civil proceeding wherein it restrained Mr. Y from encashing the cheque citing that the cheque was given to Mr. Y for security purposes and not for encasement and the trial court decreed the suit in favor of Mr. X wherein X restraining Mr. Y from encashing the cheque holding that it was given only for security purposes.