Man Sent to 2 Years of Rigorous Imprisonment in Cheque Bounce Case

Commercialization and extensive business transactions have increased the crime rate in society in a variety of ways, one of which is the frequent dishonouring of cheques issued with mala fide intention.

This not only disrupts the smooth operation of business transactions, but it can also result in extremes such as bankruptcy or loss of earnings for the rest of one’s life.

During this time, a local court convicted Sahib Singh, the owner of Nambardar Pesticides Nabha Road in Punjab’s Sangrur, to two years in prison in a cheque bounce case.

Godrej Agrovet Limited Mumbai, through counsel Ravi Inder Singh, filed a case against the accused under Section 138 of the Negotiable Instruments Act of 1881.

According to the complaint, a firm representative stated that the accused approached them to purchase pesticides, which they delivered to him. The accused works as a pesticide dealer for the corporation.

The accused owed Rs.74,88,981 in total. In order to discharge legal liability, the accused issued a cheque dated August 20, 2019, drawn on Allahabad Bank in the sum of Rs.60,00,000 in favour of the company; however, when the complainant submitted the cheque, it was returned unpaid with the remarks “Exceeds Arrangement”.

Counsel representing the accused, on the other hand, contended that the complainant misused a blank security cheque and owed nothing to the corporation.

He alleged that the complainant firm’s blank signed cheques, which were taken as collateral at the time of the distributorship appointment, were misused by the complainant company and its officials in order to lure him into fraudulent accusations. The alleged material was never provided to him, as claimed in the current complaint.

He further claimed that the invoices and other account-related documents were made by himself and faked.

After hearing the arguments, the court stated that the accused claimed he did not receive the products from the complainant, but no witness was interviewed or a document was filed to dispute delivery of bills.

Instead of proving it, he kept utterly silent. The court condemned the offender to two years of rigorous imprisonment. In addition, the court ordered the offenders to pay the complainant Rs.60,00,000 in compensation.

In the event that compensation is not paid, the convict will be sentenced to another two months of simple imprisonment.