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Wednesday, 24 February 2021

Cheque-bounce case: Company directors told to pay Rs 60-lakh relief

Tribune News Service

Chandigarh, February 23

A local court has asked two directors of a company to pay Rs60 lakh compensation to another company for issuing Rs30-lakh cheque, which got dishonoured.

Manu Mittu, Judicial Magistrate, First Class, also sentenced both directors of the company to one-year rigorous imprisonment after finding them guilty of the offences under Section 138 of the Negotiable Instruments Act, 1881.

While pronouncing the judgment, the court said: "The object of bringing Section 138 of the Negotiable Instruments Act, 1881, into the statute is to inculcate faith in efficacy of banking operations and creditability in business transaction".

Ishan Khurana of Anrose Pharma, Industrial Area, Chandigarh, had filed a complaint through advocate Satbir Singh Walia against Biotropic Pharma Private Limited, Baddi. In the complaint, Khurana said Biotropic Pharma used to supply goods to his company on the receipt of advance payment.

An amount of Rs62 lakh was due against Biotropic Pharma. To discharge that liability, a cheque for Rs30 lakh was issued, which got dishonoured. The directors of the said company refuted the charges during the hearing of the case.

After hearing both counsels, the court said the accused had committed a serious offence by deliberately failing in discharge of their economic liability and had failed to ensure the payment of cheque. It said the commission of offence punishable under Section 138 read with Section 141 of the Negotiable Instruments Act was increasing day by day and was required to be dealt with strictly. Thus, the accused did not deserve any leniency of probation under the Probation of Offenders Act, 1958. So, they were sentenced to undergo one-year rigorous imprisonment. They were also directed to pay Rs60 lakh compensation, double the cheque amount of Rs30 lakh, to the complainant within a period of one month of expiry of the period prescribed for appeal, or its disposal, if any.



from The Tribune https://ift.tt/2NqxwCx

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