A Court in Anantnag district of south Kashmir Wednesday sentenced a man to two years imprisonment and directed him to pay Rs 13 lakh compensation to the complainant, in a cheque bounce case.
After hearing counsels for complainant and accused, thecourt of Judicial Magistrate, Fayaz Ahmad Qureshi, Anantnag, said the accusedhas violated object of law on negotiable instruments.
“In the circumstances of the instant case, this court isleft with no other option but to convict the accused,” the court said.
It said the accused shall undergo two years simpleimprisonment and he shall pay Rs 13,24,160 to the complainant as compensation,which is double the cheque amount he had issued.
“The amount of compensation shall be paid by the accusedwithin one month from the date of this judgment failing which it shall berecovered in accordance with law,” the court said.
While referring to various provisions of law and SupremeCourt judgments, the court said the intention of the legislature to legislatelaw on negotiable instruments was to legalize a system by which instrumentscontemplated by it could pass from hand to hand by negotiation like any othergoods without any hindrances.
“It must ensure that the cheque shape the trust of thepeople and be a reliable document. The bouncing of the cheque when takes placenot only breaches the trust of the person in whose favour cheque is drawn butit also jeopardizes and hampers the smooth mercantile transactions by bonafidepersons,” the court said.
It said because ofdishonest drawers of instruments of cheques, people have lost faith in smoothand orderly commercial transactions which has not only stalled free circulationof money from hand to hand like goods but has also adversely affected economyof the country.
“It cannot be lost sight of that in present era there areheaps of matters pertaining to negotiable instruments before various courts of thecountry. The drawer of the cheque has turned the value of the cheque as merepiece of paper and hard earned money of the holder in due course is frozen foryears together by issuing fake cheque,” the court observed.
As per the complainant, hewas issued a cheque by the accused during a business transaction. However, itwas dishonored by the bank on the ground of “funds being insufficient” in theaccount of the accused.
The complaint had served a legal notice upon the accused,giving him an opportunity to clear the liability.