Thane Court Imposes Jail Term and Heavy Fine in Cheque Bounce Case
A magistrate court in Thane delivered a strong verdict in a long-running property dispute. The court convicted a resident of Borivali and sentenced him to one year of simple imprisonment. This punishment came for dishonouring two cheques that totalled Rs 30 lakh.
Court Orders Double Compensation in Decade-Old Dispute
The court took a stern view of the case, which stretched back over a decade. It ordered the accused to pay Rs 60 lakh as compensation to the complainant. This amount is double the original cheque value. The court emphasized the need for such a penalty due to the prolonged nature of the conflict.
Origins of the Property Transaction
The dispute began in August 2016. The complainant approached the accused to buy a 2 BHK flat in Thane (West). The agreed price was approximately Rs 70 lakh. Both parties executed a Memorandum of Understanding on August 1, 2017.
A part payment of Rs 31 lakh was made via cheque at that time. The accused promised to hand over the property by September 2018. However, he failed to provide the flat as agreed.
Failed Refund and Bounced Cheques
When the flat was not delivered, the complainant demanded a full refund. To settle this debt, the accused issued two cheques for Rs 15 lakh each in April 2018. Both cheques were presented for payment on April 27, 2018.
The bank returned them unpaid. The reason cited was that the "signature differs". This bounced cheque incident triggered the legal battle.
Legal Proceedings and Court Observations
The complainant served a legal notice in May 2018. When the money remained unpaid, he filed a criminal case under the Negotiable Instruments Act. Additional Chief Judicial Magistrate A D Margode presided over the matter.
The magistrate observed several key points during the trial:
- The accused failed to challenge the complainant's evidence effectively.
- He did not rebut the legal presumption of liability under the act.
- The transaction was already seven years old, causing prolonged stress.
The court noted that the accused's failure to pay caused significant mental and financial stress to the complainant. This justified a strict penalty.
Verdict and Consequences
In its final judgment, the court sentenced the accused to one year of simple imprisonment. It also directed him to pay Rs 60 lakh in compensation within two months.
Since the accused was absent during the judgment pronouncement, the court issued a non-bailable warrant for his arrest. This ensures the sentence will be enforced.
The case highlights the serious consequences of cheque dishonour under Indian law. It shows courts are willing to impose both imprisonment and substantial financial penalties to deter such offences.
