Court Rejects Security Cheque Defence, Holds Accused Guilty Under Negotiable Instruments Act; ₹1.75 Lakh Fine With Interest Awarded
Jammu, Aug 7: In a significant judgment, a Jammu court on Friday convicted a businessman in a 14-year-old cheque dishonour case and sentenced him to six months’ simple imprisonment while directing payment of compensation to the complainant.
The Court of Sub-Judge/Special Railway Magistrate, Jammu, presided over by Sundeep Singh Sen, convicted Prithvi Singh, authorised signatory of M/s Bharat Engineering, under Section 138 of the Negotiable Instruments Act for dishonouring a cheque worth ₹1.75 lakh issued in favour of Bee Enn Charitable Trust.
According to the case, the cheque was issued towards payment for the purchase of generator sets. However, the cheque was dishonoured, leading to the filing of a complaint before the court.
During the proceedings, the accused argued that the cheque had been issued merely as a security instrument and claimed that the generator sets were never delivered. The court, however, rejected the defence, observing that the accused had admitted his signature on the cheque and failed to rebut the statutory presumption available under the Negotiable Instruments Act.
Holding the accused guilty, the court sentenced him to six months’ simple imprisonment and imposed a fine of ₹1.75 lakh, along with 6 percent annual interest calculated from the date of the cheque till August 7, 2026.
The court further directed that the entire amount, including the interest, be paid to Bee Enn Charitable Trust as compensation.
Following the pronouncement of the judgment, the convict was taken into custody and ordered to be lodged in the District Jail for serving the sentence. (KNC)
