5 December 2022

Dehradun : A local court in Dehradun expressed deep concern over the traders ‘ growing trend of issuing blank cheque to the suppliers in the name of ” security ” .

On Friday , the court awarded six – month imprisonment to a garment shop owner , identified as Akshat Malhotra , over issuing blank cheques to suppliers as security . Petitioners ‘ counsel advocate Gaurav Sharma said that while pronouncing the judgement , additional chief judicial magistrate VI Afia Mateen ex pressed deep concern over the growing trend and said that the practice of issuing blank cheques as ‘revadis ‘ ( a type of sweet ) should be discouraged and curbed for good .

” The Supreme Court has maintained in its judgements that a security cheque is an equally valuable instrument . After signing a cheque , the accused cannot escape the liability unless re butted by evidence , ” Sharma said .

Issuing Blank Cheques As Security
Issuing Blank Cheques As Security

Haldwani – based ready made garment firm’s owner Malhotra had issued two blank cheques to his suppliers – Deep Traders and MP Apparels .

When asked to clear dues , Malhotra didn’t pay heed to his suppliers . Both then decided to fill in the outstanding figure and de posit the cheques in the bank . But the cheques bounced , following which both suppliers sent legal notices to Malhotra and finally approached the court .

After hearing both sides , the court held Malhotra guilty under section 138 of the Negotiable Instrument Act ( dishonour of cheque for insufficiency of funds in the account ) and ordered Malhotra to pay the outstanding amount to his suppliers .

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