Court directs for Rs 15 cr compensation in cheque bounce

Excelsior Correspondent
SRINAGAR, Aug 10: A local court here imposed a penalty of Rs 15 crores in a cheque bounce case and directed the accused to pay the compensation to the complainant within 60 days.
Judge Small Causes Srinagar presided by Fayaz Ahmad Qureshi while disposing off the interim application of complainant-Shafeeq Ahmad Mir of Pampore directed the accused Bilal Hassan Anim of Hyderpora Srinagar and Safdar Ali Wani of Hawal Srinagar to pay interim compensation of amount Rs 15 crores in lieu of Rs 100 crores cheque bounce to the complainant-Mir within 60 days.
Court said there is a presumption of law that the cheques have been issued for legal enforceable debt and therefore, at this stage, this court shall raise same presumption that the accused persons have issued these cheques to the complainant and it is a fact that the trial of the case is going on which shall take further time in its disposal and prima-facie the complainant has made out a case.
“Therefore, interim application is allowed and the accused persons are directed to pay interim compensation amount to the extent of 15% i.e to say Rs 15.00 crores as cheques are for an amount of Rs. 100.00 crores”, read the order.
The court, however, has clarified that in case the accused persons are acquitted at the final stage of the case then the complainant-Mir shall repay the amount of interim compensation with the interest at bank rate prevailing at the beginning of this year of this order within a period of 60 days from the date of such order and to this extent, complainant shall furnish an undertaking and indemnity bond before this court.
The interim measure has been passed by the court keeping in view that the complainant has succeeded in convincing the court to exercise its power for granting interim compensation in accordance with the law. “Section 143A empowers a court trying offence under section 138 of of N.I. Act to grant interim compensation not exceeding 20% of the amount of the cheque.
Court further added that there is no denial to the fact that the accused persons have issued the cheques, which they say, have been issued for some other purpose to show to the bank for negotiating on OTS, but the fact remains that there have been various agreements including a basic agreement dated: 14.04.2017 regarding various factories and companies mentioned in the agreement.
Court observed that the documents support the case of the complainant that there was transaction between the complainant and the accused pursuant to which cheques in question have been issued.
The cheques were issued as consideration for the manufacturing units and factories and the complainant has also filed the suit before the Principal District Judge Pulwama seeking therein that accused persons to surrender the possession and occupation of these factories.
Court on issuance of cheques said these are Negotiable Instruments as defined in Negotiable Instrument Act and the very object lying behind legislating Negotiable Instrument Act is that these cheques must have passed from hands to hands like goods and there should be negotiability and mobility in its free movement.
“Cheques are not pieces of paper and if the cheques have been issued for some civil transaction and these cheques get bounced, the cheques are enforceable in the court of law and the accused persons cannot say that the transaction had failed and so, cheques cannot be encashed”, the court recorded.