Mumbai, April 6, 2024 – The Mumbai Sessions Court has granted bail to businessman Rakesh Ramesh Kudalkar and his wife, Archana Rakesh Kudalkar, who were convicted in a cheque bounce case involving a sum of ₹20.5 lakh. The couple had been sentenced to three months of simple imprisonment and ordered to pay a fine and compensation under Section 138 of the Negotiable Instruments Act.
The bail order, issued by Additional Sessions Judge K. P. Shrikhande, comes after the accused challenged their conviction in an appeal before the Sessions Court. The court observed that since the substantive sentence and direction to pay compensation had been suspended, the accused could be released on bail while their appeal is pending.
Case Background
The case originated from Criminal Case No. 1531/SS/2013, in which complainant Raju Soma Baji alleged that the Kudalkars had issued a cheque worth ₹20,50,000, which subsequently bounced due to insufficient funds. The complainant filed a legal complaint under the Negotiable Instruments Act, leading to their conviction by the trial court on January 10, 2024.
The trial court sentenced the accused to:
- Three months of simple imprisonment
- A fine of ₹5,000 each, with an additional 15-day jail term in case of non-payment
- Payment of ₹20.5 lakh as compensation to the complainant, with 6% annual interest from the cheque date until the court’s decision.
In case of non-payment of compensation, the Kudalkars were to serve an additional three months of imprisonment.
Bail Plea and Court’s Decision
The defense counsel, Advocate Kishore Siram, argued that the Kudalkars had been on bail throughout the trial and had challenged their conviction in an appeal. Given this, the imprisonment sentence had been suspended, making them eligible for bail.
On the other hand, respondent’s lawyer, Advocate Ramesh Jain, opposed the bail, arguing that the accused should fulfill their financial obligations before being granted any relief.
After considering both arguments, the court ruled in favor of the accused and granted them bail, subject to the following conditions:
- The Kudalkars will be released on a ₹25,000 personal bond each, along with a surety of the same amount.
- They must furnish bail before the trial court within one month.
- They have been given the liberty to furnish provisional cash bail for one month.
With this decision, the criminal bail application (No. 364 of 2024) was disposed of, allowing the accused to remain out of custody while their appeal against conviction is heard.
Legal Implications
Cheque bounce cases under Section 138 of the Negotiable Instruments Act are taken very seriously as they deal with financial dishonesty and contractual obligations. Convictions often lead to strict penalties, including imprisonment and compensation orders. However, courts also consider the possibility of an appeal and the financial capacity of the accused when granting bail.
This case highlights how financial disputes can turn into criminal matters and the legal recourse available to those convicted under the Negotiable Instruments Act. The final outcome of the Kudalkars’ appeal will determine whether their conviction is upheld or overturned.
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