Punjab man gets 2-year jail in cheque bounce case

Commercialization and extensive business transaction has shot up the crime rate in society in various way and one such way is frequent dishonoring of the cheque issued with a mala fide intention.

This not only affects the smooth running of business transactions but sometimes also leads to extremities like bankruptcy of the concerned or loss of earning of whole life.

While observing this, a local court sentenced Sahib Singh, proprietor of Nambardar Pesticides Nabha Road, in Punjab’s Sangrur to undergo two-year rigorous imprisonment in a cheque bounce case.

The complaint against the accused was filed by Godrej Agrovet Limited Mumbai, through counsel Ravi Inder Singh under section 138 of the Negotiable Instruments Act, 1881.

In the complaint, a representative of the company said that the accused had approached them for purchase of pesticides and the same were supplied to him. The accused is the distributor of the company for pesticides.

The total outstanding against the accused was Rs 74,88,981. The accused in discharge of the legal liability, issued cheque dated August 20, 2019 drawn on Allahabad Bank for an amount of Rs.60,00,000 in favour of the company, however, when the cheque was presented by the complainant, it was returned unpaid with the remarks “Exceeds Arrangement”.

On the other hand, counsel for the accused argued that the complainant has misused blank security cheque and nothing is due towards the company.

He claimed that the blank signed cheques which were taken by the

complainant company on account of security at the time of appointment of distributorship, have been misused by the complainant company/officials just to drag him in false complaints. The alleged material was never supplied to him as alleged in the present complaint.

He also contended that the invoices and other account related documents are self-created and fabricated documents.

After hearing of the arguments the court said that the accused had taken the defence that he didn’t receive the goods from the complainant, but no witness was examined or a document was placed on record to deny delivery of bills.

He remained completely silent rather than prove the same. The court sentenced the accused to undergo two-year of rigorous imprisonment. The court has also directed the accused to pay Rs 60,00,000 compensation to the complainant.

In default of payment of compensation, the convict shall further undergo simple imprisonment for 2 months.