Cheque bounces in India might not always result in a jail term for the concerned person, thanks to the Allahabad High Court's reasoning that the High Court can use S. 482 of CrPC, which is the section used to quash the First Information Reports. If there has been a subsequent compromise of the case by the contesting parties, the High Courts now have the power to nullify the order of conviction.

The bench also added that this would not facilitate any convict escape justice since this is a distinct offense, opening up avenues for amicable settlement. The accused petitioner had moved the High Court, in the backdrop of the amicable settlement, to set aside the prison sentence.