The director of Delhi-based CBS Steel Pvt Ltd was today awarded two-year rigorous imprisonment by a local court and was asked to give Rs 50 lakh to Bhushan Power and Steel Limited in a cheque-bounce case.
The complainant, Satya Parkash, General Manager of the Bhushan firm, said the company was dealing in manufacturing and sale of steel wire, CR, CTD bars and other steel products. The accused, Vikas Singla, used to purchase material from it on a cash/credit basis. To discharge his legal and part financial liability, the accused issued a cheque on November 18, 2013, for Rs 50,00,000 drawn on the Union Bank of India, New Delhi, in favour of the complainant.
The complainant presented the cheque for encashment, but it was dishonoured with the remarks “exceeds arrangement.”
Thereafter, the complainant served a legal notice on November 26, 2013, on the accused asking him to pay the amount within the stipulated period, but to no avail. Following this, the present complaint was filed.
The defence counsel argued that a false and frivolous complaint had been filed by the complainant, who had misused the cheque in question. The accused had already made the payment to the complainant for the material purchased by him.
“This court is of the considered opinion that there exists a legally enforceable debt or liability in favour of the complainant and against the accused. The cheque in question has been issued in order to discharge the said liability and it has been dishonoured for want of funds. The accused has committed an offence punishable under Section 138 of the Negotiable Instruments Act,” said the court.
SOurce:TribuneIndia