Daijiworld Media Network - Panaji

Panaji, May 26: The Judicial Magistrate First Class (JMFC) Court in Mapusa has convicted a resident of Pernem in a cheque bounce case involving Rs 19 lakh, holding that the accused failed to rebut the statutory presumption that the cheque was issued against a legally enforceable debt.

In its order pronounced on Monday, Magistrate Jude Torex Sequeira sentenced Milind Kolwalkar to six months of simple imprisonment and directed him to pay Rs 19 lakh as compensation to VPK Urban Co-Operative Credit Society Ltd within 30 days. Failure to comply will result in an additional 30 days of imprisonment.

According to the case details, the complainant cooperative society had sanctioned a loan of Rs 14 lakh to Kolwalkar after he approached them citing financial difficulties. Towards repayment, he allegedly issued a cheque dated August 8, 2024, for Rs 19 lakh drawn on The Catholic Syrian Bank Ltd’s Panaji branch.

When the cheque was presented through Saraswat Co-operative Bank’s Porvorim branch, it was returned unpaid with the remark “Account Blocked.”

The court noted that despite a legal demand notice issued on August 28, 2024, the accused failed to clear the dues, prompting proceedings under Section 138 of the Negotiable Instruments Act.

The court further observed that Kolwalkar did not dispute his signature on the cheque or ownership of the account, and failed to provide any credible defence to rebut the presumption that the cheque was issued for a legally valid debt.

The judge also recorded that the accused was given sufficient opportunity to settle the matter but allegedly attempted to delay proceedings.

Holding that no leniency was warranted in such cases, the court imposed both imprisonment and compensation as a deterrent against financial misconduct involving dishonoured cheques.