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Man gets 1-year imprisonment in cheque bounce case

Convict directed to pay 12 lakh to complainant

LCT Desk by LCT Desk
March 3, 2025
in News
Reading Time: 2min read
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Sajid Raina

Srinagar, Mar 3: A local court in North Kashmir’s Bandipora district sentenced a man to 1-year simple imprisonment and Rs 12 lakh fine in a cheque bounce case.
According to the details available, the Judicial Magistrate 1st Class court Sumbal sentenced Ghulam Hassan Bhat of Kathpora Hajin to 1-year simple imprisonment and directed him to pay a fine of Rs 12 lakh as compensation to the complainant, Bashir Ahmad Dar.
The case was filed under Section 138 of the Negotiable Instruments Act (NI Act) by the complainant in 2017, alleging that Bhat had issued a cheque that was dishonored due to insufficient funds.
The court, after hearing arguments from both sides, found Bhat guilty and convicted him under Section 138 of the NI Act.
During the sentencing arguments, Bhat’s counsel requested the court to take a lenient view, arguing that the offence was financial in nature and did not involve moral turpitude or public safety concerns.
The defence cited Supreme Court rulings that emphasize compensation over punitive punishment in such cases. The counsel argued that the main objective of the law was to ensure the complainant received the due amount rather than imposing imprisonment.
On the other hand, the complainant’s counsel urged the court to impose a strict sentence, citing financial loss, legal expenses, and mental distress suffered by the complainant.
It was argued that a lenient approach would weaken the law’s intent, which is to maintain financial discipline in commercial transactions.
The complainant’s lawyer further argued that Bhat had been given several opportunities to clear his dues but failed to do so.
The court, after examining the case, found that a balance was needed to be struck between deterrence and compensation. While the maximum sentence was not deemed necessary, the court ruled that merely imposing a fine would not serve the purpose of justice.
Bhat was sentenced to one-year simple imprisonment and ordered to pay Rs 12 lakh as compensation to Dar.
The court further directed that Bhat be lodged in District Jail Pulwama to serve his sentence.

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