Jamnagar Court upholds two-year sentence for filmmaker Rajkumar Santoshi in cheque bounce dispute

The Jamnagar Sessions Court on Wednesday upheld the decision of trial court of  two years imprisonment and fine of double the cheque amount of Jamnagar Magistrate court in cheque bounce case filed by industrialist Ashok Haridas Lal for 10 cheques of ₹10 lakh.

The court has directed Santoshi to remain present on October 27, failing which an arrest warrant will be issued against him. The filmmaker is known for hits like Ghayal, Damini, Andaz Apna Apna and many such films.

Judge Vijay Agrawal while upholding the verdict of the trial court observed that the accused failed to provide credible evidence to deny signing or issuing the cheque, or to dispute the existence of a legally enforceable debt.

The presumption under Section 139 of the Negotiable Instruments Act was upheld in favour of the complainant. The court noted that the cheque, dishonoured due to a mismatched signature, was issued by the accused, who did not challenge the signature discrepancy during the trial. 

The defence’s argument that the complainant’s documents were insufficient was also rejected, as the court accepted the complainant’s oral and documentary evidence as valid proof of the debt.

The court also took the note that filmmaker  Santoshi obtained a ₹10 lakh loan from industrialist Ashok Lal and issued a cheque drawn on his Standard Chartered Bank account in Mumbai to repay the debt.

The cheque was dishonoured due to a mismatched signature when presented for clearing, the court found. Despite a demand notice sent via registered post by complainant, the filmmaker failed to pay the cheque amount within 15 days. The court held that all conditions for an offence under Section 138 of the Negotiable Instruments Act, 1881, were met, confirming Santoshi's guilt.

Industrialist and shipping magnate Ashok Lal had filed a lawsuit against filmmaker Santoshi under the Negotiable Instruments Act, alleging non-repayment of a ₹1 crore loan.

According to the complaint, Ashok Lal had provided the loan for a film project, and Santoshi issued 10 cheques of ₹10 lakh each to settle the debt. However the complainant had claimed that the cheques bounced as the drawer's signature differed, when he attempted to encash them. Despite multiple efforts to contact the filmmaker, his attempts were unsuccessful, prompting him to take legal action.