the goan I network
PANAJI
The Bombay High Court at Goa sentenced one Shivaji Naik, a resident of Navelim Sanquelim to one year simple imprisonment in a case of cheque dishonour and asked him to pay double the amount of Rs 1.70 lakh or in default undergo a further imprisonment of three months.
Overturning a judgement of the Judicial Magistrate First Class which had acquitted Naik, the High Court found that Naik was indeed guilty of dishonouring a cheque and ignored his pleas for mercy in sentencing.
Naik had borrowed Rs 23 lakh from one Ivan Singh, the owner of Warrior Minerals since the two were friends and since Naik wanted to expand his mining trucking business back in 2010. The amount was given by Singh to Naik as an ‘interest free loan’ on account of the cordial relationship between the two.
As part of the partial repayment of the loan he issued a cheque of Rs 1.70 lakh in 2013 to Singh but when Singh deposited the cheque, it returned with the memorandum stating “funds insufficient.”
“The learned trial Court has erroneously observed by holding that there was no legally enforceable debt unmindful of the admissions brought on record during the cross examination of the appellant vis-a-vis the other documentary evidence as discussed herein above,” the Bombay High Court ruled.
The duo had initially agreed to a loan of Rs 42 lakh but only Rs 23 lakh was eventually loaned by Singh to Naik.
