India: Criminal Law

The High Court of Punjab and Haryana through its judgment dated 20.07.2026 in Ajay Gupta and Another v. Can Bank Factors Limited dismissed a Petition filed under Section 482 of the Code of Criminal Procedure, 1973 seeking quashing of criminal proceedings under Sections 138 and 141 of the Negotiable Instruments Act, 1881 on the ground that insolvency proceedings had been initiated against the company under the IBC.

The Supreme Court of India, in a criminal appeal decided on 17 July 2026 by a Bench comprising Justice Sanjay Kumar and Justice Sanjeev Sachdeva, has set aside a long chain of concurrent convictions under Section 138 of the Negotiable Instruments Act, 1881, on the ground that the cheque in question was materially altered. The case, arising out of Special Leave Petition (Criminal) No. 17025 of 2025, highlights the fundamental principle that a materially altered negotiable instrument cannot form the basis of criminal liability for its dishonour.

For many Non-Resident Indians, discovering they have been declared a "proclaimed offender" in India often comes as a shock, sometimes years after a dispute or complaint they were never properly informed about. The label carries serious legal consequences, including passport impounding, property attachment, and a bar on anticipatory bail, and it is increasingly relevant given how often NRIs are named in matrimonial, property, or business disputes back home while living abroad.