Delhi HIgh Court

Delhi High Court: Property Dealer's Bad Cheque Conviction Upheld

Updated
Dec 7, 2025 10:50 PM
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Quick Summary: Rajendra Singh was found guilty of giving a bad cheque as part of a property deal. Even though he tried to challenge the decision, the court maintained his guilty verdict, rejecting his claims of acting on behalf of a group.

Background of the Case

In 1987, Rajendra Singh, who dealt in property, sold a piece of land in Agra to Saroj Singh but never actually gave her the land. In 2015, they agreed that Rajendra would pay ₹6,48,000 to Saroj, and in return, she would drop her claims to the land. Rajendra gave her a cheque, which bounced in 2016. Saroj then took him to court, leading to Rajendra being sentenced to one year and fined ₹9,72,000.

Appeal and Arguments

Rajendra challenged the decision, saying the cheque was an advance and not a real debt. He argued that since Saroj didn't cancel the original sale or take the land, there was no debt when the cheque was given. He also said the cheque was given on behalf of a group, not by him personally.

"The main point under Section 138 of the NI Act – having a real debt or responsibility when the cheque was given – was not shown in this case."

Respondent's Stand

Saroj's lawyer said the deal was clear: Rajendra would pay, and she would give up her claim to the land. The cheque was from Rajendra's own account, not a group's. She did her part by giving up her claim to the land.

"Rajendra had taken money from Saroj as far back as 1987 and, despite several deals over the years, had not paid back the amount."

Court's Analysis

Justice Swarana Kanta Sharma pointed out that Rajendra signed the deal himself, not for a group. The cheque was from his own account, and he couldn't prove otherwise. The court didn't believe his claims that the cheque was just a backup or given under pressure.

"The signing of the settlement deal dated 27.09.2015 is not in question."

Verdict

The court kept the guilty verdict, saying Rajendra was responsible for the cheque. His reasons were rejected, and he was told to serve his sentence.

Tags:
Cheque Bounce
Contract Law
Property Rights