Double penalty in cheque bounce cases

Chandigarh, September 24

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Bounced cheques have cost a Himachal firm dear. Kundlas Loh Udyog and its partners have been asked to cough up double the amount of the cheques after the bills bounced.

The court of Judicial Magistrate (first class) Nazmeen Singh today imposed double penalty in two cheque bounce cases of Rs 25 lakh each. The court directed the Himachal firm and its partners to pay Rs 1 crore to the complainant, Jindal Steel and Power Ltd, Hisar.

Jindal Steel and Power Ltd, through its representative Deep Raj, an employee of Divyadeep Associates Pvt Ltd, Panchkula, had filed a complaint under Section 138 of the Negotiable Instruments Act against Kundlas Loh Udyog, Balyana village, Barotiwala, Himachal Pradesh, and its partners — Tarsem Chand Jain, Rajiv Jain, Manoj Bansal, Dr Dharamveer.

According to the complaint, the partners of Kundlas Loh Udyog had purchased sponge iron fines of Grade ‘A’ from Jindal Steel and Power Ltd and the total outstanding due against all accused was Rs 59,99,393.

On July 15, 2008, in partial discharge of their liability, they issued two cheques (905389 and 905388) of Rs 25 lakh each. But the cheques were dishonoured by the banker with the remarks of “funds insufficient”. Hence, they filed two cheque bounce cases in the court. In their defence, the partners said they were innocent and there was no legally recoverable amount. They said they had issued Rs 50 lakh cheque in advance to the company, which was encashed as well.

As the complainant has been successful in proving his case against the accused beyond reasonable doubt, the court held Kundlas Loh Udyog and its partners accused Tarsem Chand Jain, Rajiv Jain and Manoj Bansal under joint and vicarious liability guilty and convicted them for commission of offence punishable under Section 138 of the Negotiable Instrument (NI) Act.

However, fourth accused Dr Dharamveer had been declared proclaimed offender in the case in 2011.

The court said, “The convicts have committed a serious offence by deliberately failing in discharge of their economic liability and have failed to ensure the payment of cheque drawn by them. The commission of offence punishable under Section 138 of the NI Act is increasing day by day and is required to be dealt with strictly.”

The court directed the convicts to pay compensation jointly and severally with Kundlas Loh Udyog double to the cheque amount of Rs 25 lakh in each case and total amounting to Rs 1 crore within a period of one month. — TNS