14 May 2024 Cheque Bounce >> Civil/Debt  

A man (Petitioner) has been found guilty of bouncing a check worth Rs. 5,26,785 written to a supplier (Respondent) for paper and board. The revision petition filed by the accused was dismissed by the court.

The Case:

The Petitioner had purchased paper and board from the respondent and issued a cheque as payment. However, the cheque bounced due to insufficient funds. The Respondent then filed a complaint under Section 138 of the Negotiable Instruments Act.

Defense:

The Petitioner argued that the goods supplied were defective, and he had returned them. He claimed the cheque was issued as an advance payment and not for an existing debt since the purchase was not completed.

Court's Judgement:

The court noted that the petitioner did not take any action to stop the cheque payment despite claiming he had returned the goods. The Petitioner also failed to provide convincing evidence to support his claim. The court ruled that even if the goods were defective, the proper course of action would have been to stop the cheque and not let it bounce.

Court's Reasoning:

The Negotiable Instruments Act presumes that a cheque issued is for a valid debt unless proven otherwise. The Petitioner, in this case, failed to rebut this presumption. The court also highlighted that the Petitioner did not respond to a legal notice from the supplier regarding the bounced cheque.

Conclusion:

The court dismissed the revision petition, upholding the judgements of the lower courts. This means the petitioner will face the sentence of simple imprisonment for four months and a fine of Rs. 8,50,000.

  Negotiable Instruments Act, 1881    General Clauses Act, 1897