Srinagar, June 02: In a significant judgment under Section 138 of the Negotiable Instruments Act, the Court of the 2nd Additional Munsiff/Judicial Magistrate 1st Class, Srinagar, presided over by Vikas Bhardwaj, has convicted a Rajbagh resident in a cheque dishonour case and sentenced him to one year of simple imprisonment besides directing payment of ₹8.2 lakh as compensation to the complainant.
The complainant was represented by Advocate Aijaz Ahmad Bhat and Associates, while the defence was represented by Advocate Razia Shafi and Associates.
The complaint arose from the dishonour of a cheque amounting to ₹6 lakh, which was returned unpaid by the bank with the remark “Funds Insufficient”. Despite issuance of a statutory demand notice, the liability remained unpaid, leading to initiation of criminal proceedings under the Negotiable Instruments Act.
During the trial, the accused admitted issuance of the cheque and acknowledged the liability. The Court observed that the admission attracted the statutory presumptions under the law and that the accused failed to rebut the same despite being granted sufficient opportunities.
Relying upon the settled principles laid down by the Supreme Court regarding cheque dishonour cases, the Court held that the ingredients of the offence stood proved and that the plea of guilt was voluntary and unequivocal. Consequently, the accused was convicted and sentenced to one year of simple imprisonment. The Court further imposed a fine of ₹8.20 lakh, payable to the complainant as compensation, after adjusting the amount already paid during the proceedings.
The Court also directed that in case of failure to pay the compensation amount, the authorities shall proceed against the movable and immovable properties of the convict in accordance with law for recovery of the amount.
The judgment is being seen as a reaffirmation of the legal consequences attached to cheque dishonour and the judiciary’s commitment to preserving confidence in commercial and financial transactions.
