6-month jail term in cheque bounce case

Non-repayment of a friendly loan has proved costly to a businessman as a court here has sentenced him to a six-month jail term, besides imposing a fine of Rs 12.02 lakh for dishonour of a cheque.
   
Metropolitan magistrate Vivek Kumar Gulia convicted Shiv Narain Sharma under section 138 (dishonour of cheque) of the Negotiable Instruments Act for his failure to honour the post-dated cheque issued to a friend against a loan in 2004.
    
Sanjay Kumar Gupta, the complainant, had advanced a loan of Rs 11.75 lakh to Sharma in cash and by several cheques issued on different dates.

The convict, a resident of Vikaspuri area, had issued a post-dated cheque of Rs 11.75 lakh towards the liabilities which was dishonoured on account of insufficiency of funds.

Despite the legal notice seeking payment of the loan amount after dishonouring of the cheque, Sharma refused to make the payment and denied his liability.

However, the court while holding Sharma guilty under the Act said, "Gupta has withstood the test of cross examination and the accused has not been able to bring on record any material to demolish the case of the complainant."
    
The court also turned down the plea of Sharma that there were many financial transactions involving Gupta but he had cleared all the dues saying, "the defence appears to be improbable, insufficient and unconvincing."