Court convicts man in Rs 7.20 lakh cheque bounce case

Srinagar, Nov 18: A Srinagar court has convicted a man in a cheque bounce case and sentenced him to six months of simple imprisonment besides imposing a fine of Rs 7.20 lakh along with six percent annual interest. The order was passed by the Court of the 4th Additional Munsiff and Judicial Magistrate First Class Srinagar in a complaint filed under Section 138 of the Negotiable Instruments Act.
The case was initiated by complainant Ishfaq Rashid, who stated that he had provided financial assistance of Rs 7.20 lakh to accused Showkat Ahmad Zargar of Dangerpora Tulmulla for business purposes. The accused allegedly failed to return the amount despite repeated reminders and later issued a cheque to settle the liability.
According to the court record, the cheque bearing No. 387870 was presented on June 12, 2023, at J&K Bank N S Road Srinagar but was returned unpaid for insufficient funds. A demand notice was issued to the accused on July 3, 2023, which he received but did not respond to or comply with.
During the proceedings, the accused admitted to issuing the cheque, writing the amount on it and owing Rs 7.20 lakh to the complainant. The court held that these admissions attracted statutory presumptions under Sections 118 and 139 of the NI Act and that the accused had failed to rebut them through credible evidence.
The court observed that the cheque was issued for a legally enforceable debt and that all ingredients required for establishing the offence under Section 138 had been met. It ruled that the complainant had proved the case beyond reasonable doubt.
The court sentenced Zargar to six months of simple imprisonment and directed him to pay a fine of Rs 7.20 lakh with six percent interest from the cheque date until November 13, 2025. The amount is to be paid as compensation to the complainant. In case of failure to pay the fine, the convict will undergo an additional six months of simple imprisonment.
A free copy of the judgment was provided to the convict in open court. [KNT]