Bizman convicted in Rs 60L cheque bounce case

Panaji: Chief judicial magistrate court, Merces, on Monday sentenced Atul Madhusudan Rangnekar, proprietor of M/s Balaji Constructions, to simple imprisonment of six months in a 2020 cheque-bouncing case of Rs 60 lakh. The court convicted him under the Negotiable Instruments Act, 1881 and also directed him to pay a fine of Rs 10 lakh as compensation to the complainant within one month.

Chief judicial magistrate Sarika N Fal Dessai observed that the matter dates back to 2021 and that the accused delayed it by remaining absent. The complainant’s advocate said that the accused remained absent despite having given an undertaking to remain present on all dates of hearing, and alleged that this was done to avoid payment. The advocate for the accused argued that the accused has paid the entire cheque amount and that the complainant misused the two blank cheques given to him.

According to the complaint by M/s JB Developers, a partnership firm represented by Joao Rodrigues, the complainant had known the accused for almost ten years in the construction business.

The complainant said that in 2016, he approached Rangnekar with a work order and offered to join them in executing the work for the sale of scrap materials and old machinery in the open market. This was done as a joint venture with profit sharing in return for the finance amount.

He formed a joint venture and signed an MoU with the accused in Nov 2016. As per the accused’s request, he was paid Rs 60 lakh. Under the terms of the MoU, he agreed to complete the lifting of scrap materials and old machinery from the factory premises within three months of the MoU’s execution, but the work was never completed.

After repeatedly enquiring about the work and requesting a refund if it could not be completed, the accused handed over two cheques in Nov 2020 for Rs 55 lakh and Rs 5 lakh. Both cheques were dishonoured due to insufficient funds.

The court held that considering his antecedents, no leniency can be shown.