Srinagar, Sep 10: A local court has sentenced a Srinagar man to one year imprisonment and imposed a compensation of over Rs 40 lakh in a high-value cheque bounce case, following conviction under Section 138 of the Negotiable Instruments Act.
The City Judge Abdul Bari convicted Hakeem Zaffar Ahmad of Buchpora in a case filed by Rattan Singh of Lalpora, Tral Pulwama, over bounced cheques amounting to Rs 30 lakh.
The cheques, issued as repayment of loans, were dishonoured due to insufficient funds when presented in March 2019 by the complainant at J&K Bank Parimpora Qammarwari.
Despite repeated requests and the service of a legal notice, the accused failed to pay the due amount, prompting proceedings under Section 138 of the NI Act.
During the trial, the court found that the cheques had not been issued as security but constituted repayment for a legally acknowledged debt.
The accused's defense, alleging that his signatures were forcibly obtained and the cheques were not for a valid liability, was not substantiated in court, nor was any complaint lodged with the police or bank authorities.
After evaluating witness testimony and documentary evidence, including an undertaking, receipts, and the dishonoured cheques, the court held that the complainant proved all essential elements of the offence. The court further noted the accused failed to rebut the legal presumption under Section 139 of the Act.
Judge Abdul Bari sentenced the convict to one year of simple imprisonment and ordered him to pay the full cheque amount—Rs 30 lakh—plus 6% interest (totaling Rs 40,35,000) as compensation to the complainant, to be paid within one month after the expiry of the appeal period or its disposal.
In the event of non-payment, the convict will serve an additional three months in prison.
Comment List