Court Sends Businessman to Jail in Cheque Bounce Case, Rs.20 Lakh Fine imposed

After BJP MLA has been sent to Jail in Cheque bounce case, a new case of cheque bounce has come to light. A court in Thane has sentenced a businessman, Nitin Tawade, to jail and ordered him to pay a fine of ₹20 lakh in a cheque bounce case.

The judgment was given by Additional Chief Judicial Magistrate A.D. Margode under Section 138 of the Negotiable Instruments Act, which deals with cases where cheques are dishonoured or “bounced.”

What Happened in the Case?

Nitin Tawade had taken a loan of ₹17 lakh from a person named Santosh Palshikar, who filed the complaint on behalf of his minor daughter. As part of the repayment, Tawade sent ₹3.05 lakh through NEFT (bank transfer). However, he also issued six cheques, and four of them, each worth ₹2.5 lakh, were bounced when presented to the bank due to insufficient funds.

Why Was He Convicted?

The court found that all the five key legal conditions required for a cheque bounce conviction were met. These include:

1. Cheque issued against a valid loan/debt
2. Cheque presented to the bank on time
3. Cheque was dishonoured or bounced
4. Legal notice was sent to the accused after the cheque bounced
5. Payment was not made even after receiving the notice

Since all these conditions were proven in court, the judge ruled in favour of the complainant.

What Is the Punishment?

The Court has imposed strict punishment on him and sent him to Jail. Along with this, he has been ordered to pay a ₹20 lakh fine. If he fails to pay the fine, he will have to spend an additional six months in jail.

The court also directed that the entire ₹20 lakh should be paid as compensation to the complainant within three months.

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