Bouncing the cheque is a serious offense but still, people do not take it seriously and keeps dishonoring the cheques, most of them also managed to get away with it, but some get caught into the clutches of the law. In one such case, a resident of Sanquelim Goa had been awarded one-year jail term and asked to pay double the amount of the cheque by the court.
According to the reports, one Shivaji Naik, a resident of Navelim Sanquelm, was sentenced by the Bombay High Court to one-year simple imprisonment in a case of cheque dishonor. The Court has asked him to pay double the amount of Rs. 1.70 lakh or in default undergo further imprisonment of three months.
The Judicial Magistrate First Class had acquitted Naik, but the High Court found that Naik was indeed guilty of dishonoring a cheque and after overturning the judgment, ignored his plea for mercy in sentencing.
Naik had borrowed Rs 23 lakh from one Ivan Singh, the owner of Warrior Minerals since the two were friends and since Naik wanted to expand his mining trucking business back in 2010. The amount was given by Singh to Naik as an ‘interest-free loan’ on account of the cordial relationship between the two.
As part of the partial repayment of the loan, Naik issued a cheque of Rs 1.70 lakh in 2013 to Singh but when Singh deposited the cheque, it returned with the memorandum stating “funds insufficient.”
“The learned trial Court has erroneously observed by holding that there was no legally enforceable debt unmindful of the admissions brought on record during the cross-examination of the appellant vis-a-vis the other documentary evidence as discussed hereinabove,” the Bombay High Court ruled.
The duo had initially agreed to a loan of Rs 42 lakh but only Rs 23 lakh was eventually loaned by Singh to Naik.
Source: THE GOAN