Thane businessman gets 1-year imprisonment in 2018 cheque bounce case

A Thane court has sentenced a businessman to one-year simple imprisonment in a cheque bounce case of 2018 and imposed a fine of Rs 10 lakh on him, directing it to be paid as compensation to the complainant, reported news agency PTI.

The accused failed to make the payment deliberately and hence was not liable for leniency, the 11th Additional Chief Judicial Magistrate, A D Margode, observed in the order passed on Monday.

If he defaults on paying the fine, he will face an additional six months of simple imprisonment, the court said, reported PTI.

As per the case, a Thane resident had given an interest-free friendly loan of Rs 17 lakh to the accused in 2015 for his ice cream parlour business.

The accused later repaid Rs 3.05 lakh, leaving a balance of Rs 13.95 lakh. To settle this liability, he issued six cheques, totalling Rs 15 lakh, in the name of the lender`s minor daughter, reported PTI.

A dispute arose when two of the cheques, each of Rs 2.5 lakh and dated June 22, 2018, were dishonoured by the bank concerned, citing “account closed”.

Despite a legal notice, the businessman failed to pay the amount, following which the minor girl lodged a complaint against the accused in August 2018 under provisions of the Negotiable Instruments Act, reported PTI.

The counsel for the accused claimed it was a false case, arguing the cheques were merely for `security` and that he had not received the legal notice.

The court said the accused failed to provide any probable evidence to support his claims.

“Bare denial of the existence of legally enforceable debt or other liability cannot be said to be sufficient to rebut the presumption and something which is probable has to be brought on record to shift the onus back to the complainant,” it said, reported PTI.

The court found the `security cheque` defence without merit, pointing out that the accused`s part-payment of over Rs 3 lakh acknowledged the existence of the loan transaction.

“It appears from the facts and circumstances and evidence before the court that the accused anyhow wanted to deny his liability for repayment of the amount and caused loss to the complainant,” Judge Margode observed, reported PTI.

“He failed to make the payment of cheque amount deliberately. So the accused is not liable for the leniency,” the court added.

(With inputs from PTI)

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