Ankit Saha (CEO) 03 July 2014
Respected forum members,
In a cheque bounce case, it is established that cheque bounced due to STOP ORDER though sufficient funds are available in the bank. In such case, is it true as per law that accused can only be fined , but CAN NOT be given jail sentense?
R Trivedi (advocate.dma@gmail.com) 04 July 2014
No such law.
It is the discretion of court to give compensation up to twice the amount of cheque or imprisonment up to 2 years or both. Any mix.
The point is if accused has succeeded in giving suitable evidence with respect to need for his issuing Stop Payment Instruction, then no conviction. For example (as taken from SC order), if an advance cheque is issued to a Hospital for Surgery, and the patient dies before the surgery is conducted, then Stop Payment Instruction is valid and no conviction is called for.
Sunil S Nair (lawyer) 19 July 2014
Stop payment with sufficient payments in the bank does not attract 138 if reason is proved why such order was given to the bank
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