Summary: In a recent judgment by the Delhi High Court, Manila and Deepali Kundara were found guilty under Section 138 of the Negotiable Instruments Act. They were accused of writing checks that bounced because of a "Payment Stopped by Drawer" notice. The court confirmed their guilt and rejected their appeals.
In June 2014, Manila and Deepali Kundara bought jewellery worth over ₹39 lakhs from Ajay Goyal. To pay for this, they wrote two cheques dated June 27, 2014. However, these cheques bounced with the remark “Payment Stopped by the Drawer.”
Even after getting a legal notice to pay the money, the Kundaras did not clear their debt. This led Ajay Goyal to file complaints under Section 138 of the NI Act. On April 18, 2023, and April 27, 2023, the Trial Court found both Manila and Deepali guilty, sentencing them to six months in jail and large fines.
The Kundaras appealed the decisions, but the higher court agreed with the Trial Court's rulings. They argued that Ajay Goyal couldn't file the complaint because the cheques were made out to Yashman Diamonds, not his personal name.
Justice Swarana Kanta Sharma explained that a sole proprietorship like Yashman Diamonds is legally the same as its owner. Therefore, Ajay Goyal had every right to file the complaint. The court found no proof to support the Kundaras' claims of cheque misuse.
The Kundaras couldn't provide proof for their claims that the cheques were misused or written for other reasons. The court noted their changing stories and the fact that they didn't file any police report about the supposed misuse.
After looking over the case, the High Court found no reason to change the decisions of the lower courts. The petitions were dismissed, confirming the convictions under Section 138 of the NI Act.
