Excelsior Correspondent
Srinagar, Jan 6: Observing that the commission of offense punishable under Section 138 of Negotiable Instrument (NI) Act is increasing day by day and is required to be dealt strictly, a local court has awarded six month imprisonment and Rs 10 lakh fine on the accused to be paid to the complainant as compensation for issuing cheques which bounced due to insufficient balance.
Sub Registrar (Judicial Magistrate 1st class) Srinagar presided by Touseef Ahmad Magrey after having heard the counsel Sajad Ahamd Sofi for complainant concluded that the convict-accused has committed the offense by deliberately failing in discharge of his economic liability and failed to ensure the payment of cheques drawn by him.
Advocate Sajad Sofi argued before the court that no leniency can be taken against the convict as to his age, criminal antecedents etc. He requested for imposing maximum sentence on convict as convict has committed an economic offense.
“…the interest of justice would be met if the convict Noor Mohammed Rah is sentenced to undergo simple imprisonment for a period of six months for commission of offense punishable under Section 138 of Negotiable Instruments Act, 1881”, reads the judgment
The accused, court directed, apart from liability amount has also to pay fine of Rs. 10 lakh along with interest at the rate of 6% per annum from the date of cheques till date within the period of one month of expiry of period prescribed for appeal, or its disposal, if any”, reads the judgment.
Court in default of payment of fine ordered that the accused shall undergo further simple imprisonment for six months.
The Court said the ends of justice would be best served, if the complainant is compensated and underscoring the Supreme Court ruling where under it has been held that the Magistrate has power to impose a fine limit of which may be twice the amount of the cheque amount.
The object of bringing Section 138 of Negotiable Instruments Act, 1881 into the statute court said, is to inculcate faith in efficacy of banking operations and credibility in transacting business by en-cashable instruments and to enhance the acceptability of cheque as a mode of payment due to sufficient arrangements made by drawer with the adequate safeguard to prevent harassment of honest drawers.
“Legislative intent in enacting section 138 in N.I Act is to provide a criminal remedy in order to prevent high incidents of dishonoring of cheque. Further, Negotiable Instruments Act, 1881 is more in the nature of providing monetary relief to the complainant rather than a severe measure of punishment since the Act is more in the nature of ensuring sanctity of commercial relations”, Court said.
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