Panaji: The chief judicial magistrate court in Merces on Monday sentenced Atul Madhusudan Rangnekar, proprietor of M/s Balaji Constructions, to six months of simple imprisonment in a cheque-bouncing case involving Rs 60 lakh from 2020. The court convicted him under the Negotiable Instruments Act, 1881 and directed him to pay a fine of Rs 10 lakh as compensation to the complainant within one month.
Court Observations
Chief judicial magistrate Sarika N Fal Dessai observed that the matter dates back to 2021 and that the accused delayed proceedings by remaining absent. The complainant’s advocate stated that the accused remained absent despite giving an undertaking to appear on all hearing dates, alleging this was done to avoid payment. The defense argued that the accused had paid the entire cheque amount and that the complainant misused two blank cheques given to him.
Background of the Case
According to the complaint by M/s JB Developers, a partnership firm represented by Joao Rodrigues, the complainant had known the accused for nearly ten years in the construction business. In 2016, Rodrigues approached Rangnekar with a work order and offered a joint venture to execute work involving the sale of scrap materials and old machinery in the open market. The venture was structured with profit sharing in return for financing.
An MoU was signed in November 2016. As per the accused’s request, the complainant paid Rs 60 lakh. Under the MoU terms, the accused agreed to complete lifting scrap materials and old machinery from the factory premises within three months, but the work was never finished.
Cheque Dishonour
After repeated inquiries and requests for a refund if the work could not be completed, the accused issued two cheques in November 2020: one for Rs 55 lakh and another for Rs 5 lakh. Both cheques were dishonoured due to insufficient funds.
The court held that considering the accused’s antecedents, no leniency could be shown.
