Shopian Court sentences trader to 2-yr jail, fine in cheque bounce case

Shopian, Apr 22: A court in Jammu and Kashmir’s Shopian district on Wednesday convicted a local trader in a cheque bounce case, sentencing him to two years’ imprisonment and directing him to pay double the cheque amount along with compensation.

Chief Judicial Magistrate Shopian, Rayaz Ahmad Choudhary, found Manzoor Ahmad Paul guilty under Section 138 of the Negotiable Instruments Act after three cheques amounting to Rs 9 lakh, issued to a fruit grower, were dishonoured due to insufficient funds.

The complaint was filed by Farooq Ahmad Mir, who alleged that he had supplied thousands of apple boxes to the accused in 2018, leaving an unpaid balance. The accused later issued three cheques of ₹3 lakh each, which were returned unpaid upon presentation, prompting legal action.

The court held that the complainant had successfully established the foundational facts, including issuance and dishonour of the cheques and service of legal notice. It observed that statutory presumptions operated in favour of the complainant and were not effectively rebutted by the defence.

“The accused has failed to produce any credible evidence to support his claims of prior payment or misuse of cheques,” the court said, adding that mere denial was insufficient to counter the presumption of liability.

While noting minor inconsistencies and a lack of documentation in parts of the complainant’s case, the court ruled that these did not outweigh the legal presumption arising from the dishonoured cheques.

Apart from the jail term, the court directed the convict to pay ₹18 lakh—double the cheque amount—along with 6 per cent annual interest and ₹50,000 as compensation to the complainant. In case of non-payment, the convict will face an additional three months’ imprisonment.

The court further ordered that the convict’s assets may be attached if the payment is not made.