Srinagar, Feb 13: A Pulwama-based businessman has been acquitted in a ₹13 lakh cheque bounce case after the Court of Sub Judge Srinagar ruled that the complainant failed to establish the existence of a legally enforceable debt, a mandatory requirement for conviction under Section 138 of the Negotiable Instruments Act.
The Court of Sub Judge Srinagar has acquitted Wasim Raja Khan of Pulwama in a cheque bounce case filed by Mohammad Ismail Qureshi of Sonwar, Srinagar, after determining that the complainant failed to establish the existence of a legally enforceable debt a foundational requirement under Section 138 of the Negotiable Instruments Act. In a judgment delivered on February 12, 2026, Sub Judge Junaid Imtiaz Mir held that while a cheque for ₹13,00,000/- (bearing No. 606815 dated January 15, 2021) was admittedly drawn on the accused’s account with Jammu and Kashmir Bank’s Pulwama branch and subsequently dishonored for “insufficient funds” when presented on February 8, 2021, the prosecution failed to prove that this cheque was issued to discharge any debt owed specifically to the complainant, asper news agency Kashmir News Corner — KNC.
The accused, represented by Advocate Aamir Masoodi, secured acquittal primarily through effective cross-examination that exposed critical inconsistencies in the prosecution’s case.
During cross-examination of Mohammad Maqbool Dar (CW-2) a local respected figure from Pulwama cited as a witness by the complainant himself the defense elicited testimony that fundamentally undermined the prosecution’s claim. Dar unequivocally stated that Khan had informed him he owed ₹13 lakhs to one Javid Iqbal not to Qureshi and that any settlement discussions revolved around payment to Iqbal. Dar, who is illiterate, confirmed the document drafted during settlement talks recorded Khan’s liability toward Iqbal.
Further, Javid Iqbal who appeared as CW-7 for the complainant admitted to having business dealings with Khan since 2011-12, including involvement in Exide battery business and maintaining “family-like relations” with the accused for several years. Khan consistently maintained throughout proceedings that he had business dealings exclusively with Iqbal, to whom he had given a blank signed security cheque around 2014.
He claimed that after settling accounts with Iqbal in 2018-19, the latter allegedly misused the old cheque by filling in Qureshi’s name and the amount, leading to the present litigation.
The court observed that bank statements produced by the complainant merely showed debits from his account and credits to Khan’s account at different times, but failed to establish direct payment by Qureshi to Khan or prove any business partnership between them. No receipts, partnership deed, or assignment document transferring liability from Iqbal to Qureshi was produced.
“The existence of a legally enforceable debt or liability in favour of the complainant is the foundational and indispensable prerequisite for constituting an offence under Section 138,” Judge Mir emphasized in the 30-paragraph judgment. “Once it is shown that the alleged liability was towards Javid Iqbal and not towards the complainant, the statutory presumption under Sections 118 and 139 stands rebutted.”
The court noted that Khan’s defense remained consistent from his initial statement under Section 242 CrPC through his Section 342 statement and defense evidence a factor that strengthened his credibility. Legal experts note that this judgment reinforces the principle that mere dishonor of a cheque is insufficient for conviction under Section 138 NI Act; the prosecution must affirmatively establish that the cheque was issued against a legally enforceable debt owed to the complainant specifically.
The acquitted accused, Wasim Raja Khan, resides in Industrial Estate, Chat Pora, Pulwama, and previously operated a business under the name M/s Gulshan and Company. The account from which the disputed cheque was drawn has remained dormant since 2016. (KNC)
