Thane Businessman Gets 1-Year Jail, Rs 20 Lakh Fine For Bounced Cheques
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Thane court sentences Nitin Tawade to one year in jail and Rs 20 lakh fine for issuing four cheques that bounced. An extra six months jail if he fails to pay.
Thane: Today, on June 13, a businessman from Thane, Nitin Tawade, has been sentenced to one year of simple imprisonment by the 11th Additional Chief Judicial Magistrate, A D Margode, for issuing four cheques that later bounced.
The total amount involved in the case was Rs 10 lakh. Along with the prison term, the court has also directed Tawade to pay a fine of Rs 20 lakh.
ALSO READ: Cheque Bounce Cases: New Supreme Court Guidelines
According to the order dated June 9, which was made public on Friday, the court held Tawade guilty under the Negotiable Instruments Act, 1881, for dishonouring cheques.
The bounced cheques were issued to a minor girl, and the complaint in the case was filed on her behalf by her father, Santosh Palshikar.
The magistrate noted that if Tawade fails to pay the fine of Rs 20 lakh, he will have to serve an additional six months in prison.
The court clearly stated in the order:
“The accused, Nitin Tawade, is sentenced to one year simple imprisonment and a fine of Rs 20 lakh is imposed on him.”
It further mentioned:
“In case of default in payment of fine, the accused shall undergo further six months of imprisonment.”
The complaint arose after four cheques issued by Tawade were dishonoured by the bank due to insufficient funds.
Also Read: Former Cricketer Virender Sehwag’s Brother Arrested in Rs 7 Crore Cheque Bounce Case
These cheques were handed over to the complainant’s father as part of a financial transaction. Upon bouncing, Palshikar initiated legal proceedings under Section 138 of the Negotiable Instruments Act, which deals with offences related to dishonour of cheques.
The court took note of the fact that the complainant was a minor and expressed its concern for protecting the financial interests of such individuals. The judicial officer emphasised the seriousness of cheque dishonour cases and observed that such actions shake the trust placed in banking instruments.
the court remarked in its order,
“The act of issuing cheques and allowing them to bounce causes mental and financial stress to the complainant and undermines the credibility of financial dealings,”
Key Changes, Impact, and Public Awareness
What are the new rules for cheque bounce cases introduced by the Supreme Court?
- The new regulations aim to speed up trial processes, utilize digital platforms for case management, and enforce stricter penalties for repeat offenders.
How will these rules affect pending cheque bounce cases?
- Pending cases are anticipated to be resolved more quickly thanks to streamlined procedures and a focus on alternative dispute resolution methods.
Are there any penalties for repeat offenders under the new guidelines?
- Yes, the guidelines impose stricter penalties on repeat offenders to discourage habitual cheque bouncing.
What role do digital platforms play in the new cheque bounce rules?
- Digital platforms are essential for the filing and tracking of cases, facilitating quicker and more efficient case management.
How can individuals learn more about the new cheque bounce rules?
- Public awareness initiatives and workshops are being organized to inform individuals about the new guidelines.
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