Srinagar, October 13: The Court of the 2nd Additional Munsiff (Judicial Magistrate First Class), Srinagar, has convicted Pirzada Iftikar Ahmad in a cheque dishonour case under Section 138 of the Negotiable Instruments Act, 1881, sentencing him to three months of simple imprisonment and imposing a fine of ₹3 lakh payable to the complainant.
The judgment was pronounced on September 18, 2026, by Vikas Bhardwaj, 2nd Additional Munsiff (JMIC), Srinagar, in a complaint filed by Mohammad Yousuf Sheikh, a resident of Newa, Pulwama.
According to the complaint, the accused had borrowed ₹2 lakh from the complainant for his fruit business and issued two cheques of ₹1 lakh each, dated January 29, 2019, and February 7, 2019. Both cheques were dishonoured upon presentation due to insufficient funds. Despite the issuance of a statutory demand notice, the accused failed to make the payment within the prescribed period, prompting the complainant to initiate criminal proceedings.
During the trial, the accused admitted that the cheques belonged to his bank account, bore his signatures, and had been filled in by him. However, he disputed the underlying liability, claiming that the cheques were connected with a separate financial and property transaction involving third parties, including Bachnu Devi.
The court examined the testimony of the complainant, his son, the accused and the defence witnesses. It observed that the defence had failed to present a consistent and probable explanation regarding the issuance of the cheques. The alleged alternative transaction was also not substantiated by reliable documentary evidence.
Relying on the statutory presumptions under Sections 118(a) and 139 of the Negotiable Instruments Act, the court held that once the execution of the cheques was admitted, the presumption arose that they had been issued towards discharge of a legally enforceable debt or liability. The accused failed to rebut that presumption through a probable defence.
Holding that the essential ingredients of Section 138 of the Act had been established, the court convicted the accused and sentenced him to three months of simple imprisonment at Central Jail, Srinagar.
In addition, the court imposed a fine of ₹3 lakh, directing that the entire amount be paid to the complainant as compensation. The judgment further provides that, in the event of non-payment, the District Magistrate, Srinagar, shall identify the accused’s movable or immovable properties for attachment and sale in accordance with law, with the proceeds up to ₹3 lakh to be paid to the complainant.
The complainant was represented by Abid Mushtaq Wani.
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