Thane Court Convicts Businessman In Cheque Bounce Case; 1-Year Jail & ₹60 Lakh Compensation Ordered

Thane, Dec 05: A Thane court has convicted a Mumbai businessman for issuing two cheques that bounced, directing him to pay Rs 60 lakh in compensation and sentencing him to one year of simple imprisonment for the offence.

The order was passed by Additional Chief Judicial Magistrate A. D. Margode in a case filed under Section 138 of the Negotiable Instruments Act by complainant Sushama Sachin Nikam.

Property Deal Gone Wrong

According to the complaint, Nikam, who was seeking a permanent home, approached accused Rakesh Ramesh Naik in 2016 to purchase a 2BHK flat in Thane (W) for about Rs 70 lakh.

She executed a Memorandum of Understanding with him in August 2017 and paid Rs 31 lakh as part payment through a bank cheque. Naik allegedly assured her that the flat would be handed over by September 2018, but no property was shown to her even after repeated requests.

Cheques Issued, But Returned Unpaid

When Nikam demanded her money back, Naik issued two Yes Bank cheques of Rs 15 lakh each, dated April 10 and April 13, 2018. However, both cheques were returned unpaid on April 27, 2018, with the remark “signature differs.” Despite receiving a legal notice dated May 4, 2018, Naik failed to repay the amount, leading Nikam to file the criminal complaint.

Evidence Unchallenged in Court

The court noted that Naik neither disputed the execution of the MoU nor denied issuing the cheques. It also recorded that he did not cross-examine the complainant, effectively leaving her evidence unchallenged.

The court held that all essential ingredients of Section 138 had been fulfilled, including issuance of the cheques, their dishonour, valid service of notice, and failure to pay within the prescribed period.

No Leniency for Denying Liability

Observing that Naik had attempted to “deny his liability” and caused financial and mental stress to the complainant, the court ruled that he was not entitled to leniency.

It sentenced him to one year of simple imprisonment and directed him to pay Rs 60 lakh as compensation within two months, failing which he will undergo an additional three months of simple imprisonment.

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Non-Bailable Warrant Issued

Since Naik was absent during sentencing, the court also issued a non-bailable warrant under Section 418(2) of the CrPC.

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