Cheque bounce case: Man sentenced to one year imprisonment
In a cheque bounce case, a local court here convicted a man to one year imprisonment and directed him to pay Rs 13 lakh compensation to the complainant.
Forest magistrate, Srinagar, BA Munshi convicted the person to one year simple imprisonment under Negotiable Instrument Act (NI Act). The court directed the convict to pay a compensation of Rs 13 lakh including to the amount of cheque to the complainant.
The complainant, Ghulam Nabi Khan of Wanbal, Srinagar had filed a complaint before the court in 2013, pleading that the accused had entered into a business transaction with him and out of this business transaction, Rs 9.50 lakh remained outstanding against the accused person.
According to case details, the accused had issued the cheque to clear the liability but cheque was not honored by the bank.
Despite legal notices from the complainant, the accused did not pay the amount following which the complainant lodged the complaint in the court.
The court observed that the accused has committed the offence under section 138 of NI Act and as such was held guilty.
"Admittedly on the date of cheque i.e. 15-03-2013 there was outstanding amount of Rs 9.50 lacs against the accused. In other words it can be said that there was liability of Rs 9.50 lakh existing on the date of issuance of the cheque. So the cheque was issued in discharge of the liability and was not the security cheque," the court said after hearing the counsels of both parties.
"Before parting with, it is pertinent to mention here that punishment has been ordered to the lesser side because the accused has been ordered to pay Rs 13 lakh as compensation to the complainant which is Rs 3.50 lakh more than the cheque amount," court said.