E-Paper
Chandigarh: Firm director sentenced to one-year RI in ₹43-lakh cheque bounce case
As per the complaint, his firm had invested ₹53 lakh in the accused’s company between 2017 and 2018 through a series of agreements
A local court has convicted a company director in a cheque dishonour case involving ₹43 lakh and sentenced him to one year of rigorous imprisonment.
Judicial magistrate first class Jasbeer Singh, in an order dated April 17, held the accused, Amarjeet Singh, director, Light Air Transmission Private Limited, guilty under Section 138 of the Negotiable Instruments Act.
The complaint was filed by Color Advertisers, a proprietorship firm based in Zirakpur, through its owner Rahul Sharma.
As per the complaint, the firm had invested ₹53 lakh in Singh’s company between 2017 and 2018 through a series of investment agreements.
When the amount was not returned, both parties entered into a compromise deed dated April 26, 2021, under which the accused agreed to repay ₹50 lakh within a stipulated period.
The complainant stated that ₹7 lakh was subsequently received, leaving an outstanding amount of ₹43 lakh. To discharge this liability, a cheque dated September 5, 2022, for ₹43 lakh was issued by the accused, Singh. However, upon presentation, the cheque was dishonoured due to ‘funds insufficient.’
The court noted that Singh admitted his signatures on the cheque. It held that the statutory presumption under the law operated in favour of the complainant and that the accused failed to rebut it with any credible evidence.
Rejecting the defence arguments, including objections regarding the validity of the legal notice and denial of personal liability, the court observed that the agreements and the compromise deed clearly indicated the accused director’s responsibility. It also noted that the cheque had been issued towards discharge of a legally enforceable debt.
During sentencing, the court awarded one year of rigorous imprisonment to Singh.
It also directed him to pay compensation of ₹43 lakh along with interest at 6% per annum from the date of the cheque until realisation.
The court further observed that the accused had been convicted in two other connected cheque dishonour cases arising out of related transactions. It ordered that the sentences in all three cases will run concurrently.
