Mumbai, January 29, 2024: In a significant development, the Sessions Court at Mazgaon granted bail to two directors of Surya Landmark Developers Pvt. Ltd., Vipul Himmatlal Shah and Murari Vipul Shah, who were convicted in a cheque bounce case under Section 138 of the Negotiable Instruments Act. The bail application was filed as part of Criminal Appeal No. 6 of 2024 following their conviction by the trial court on November 30, 2023.
Background of the Case
The case was initiated by the complainant, Laxmichand Kunverji Kenia, who had filed a complaint against Surya Landmark Developers Pvt. Ltd. and its directors, alleging that a cheque amounting to Rs. 85,50,000/- issued by the company was dishonored due to insufficient funds. The complainant sought legal recourse under the Negotiable Instruments Act, which deals with cases of dishonored cheques.
On November 30, 2023, the trial court found the accused guilty and sentenced directors Vipul Himmatlal Shah and Murari Vipul Shah to simple imprisonment until the rising of the court. Additionally, they were ordered to compensate the complainant with Rs. 85.5 lakh along with a 9% annual interest from the date of filing of the complaint until full realization of the amount. Failure to comply with the payment order would result in a six-month simple imprisonment for the accused.
Arguments and Court’s Observations
The bail application was argued by Advocate Dakshata Zagade on behalf of the accused, while Advocate Jatin Karia (Shah) represented the complainant. The defense contended that the accused had been on bail throughout the trial period and had now challenged the legality and propriety of the trial court’s judgment in their appeal.
Considering that the substantive sentence had been suspended, the Sessions Court deemed it appropriate to grant bail to the accused. Judge K.P. Shrikhande, presiding over Court Room No. 87, ruled in favor of bail, stating that the appellants could be released upon executing a personal bond of Rs. 50,000/- each with a surety in the same amount. The accused were given one month to furnish their bail before the trial court.
Court’s Order
- Criminal Bail Application No. 29 of 2024 was allowed.
- Accused Vipul Himmatlal Shah and Murari Vipul Shah were granted bail on a personal bond of Rs. 50,000/- each with a surety of the same amount.
- The accused were directed to furnish their bail before the trial court within one month.
- The case was disposed of accordingly.
Legal Implications and Future Proceedings
This ruling provides temporary relief to the directors of Surya Landmark Developers Pvt. Ltd., allowing them to remain out of custody while their appeal is heard. However, they are still liable for the compensation amount of Rs. 85.5 lakh, and failure to comply with the court’s directive may lead to further legal consequences.
The complainant, Laxmichand Kunverji Kenia, has the option to challenge the bail order if deemed necessary. Meanwhile, the appeal proceedings will determine whether the conviction and compensation order will be upheld, modified, or overturned.
The case underscores the importance of financial accountability in corporate transactions, highlighting the legal recourse available to individuals affected by dishonored cheques. With multiple cheque bounce cases being litigated across the country, this decision adds to the ongoing discourse on corporate financial responsibility and judicial oversight in financial fraud cases.
Stay tuned for further updates on the case as the appeal progresses through the judicial system.
