Resellers upbeat after HC ruling on cheque bouncing

DQW News Bureau

The Mumbai High Court recently passed a judgment to ensure speedy trials of
cases involving bouncing of cheques. One of the 18 guidelines laid down in the
judgment exempts the complainant from being present in the court provided he
files an affidavit.

Cheque bouncing cases are one of the most serious causes of concerns for the
channel and distributor community as the stakes in such cases usually run into
several lakh of rupees. The HC's decision has met with a positive response by
most resellers and their associations across the country.

Umang Mehta, Spokesperson, TAIT (Trade Association of Information
Technology), Mumbai premier channel association was very optimistic about the
decision and said, “It's a positive ruling and we welcome the decision.”

Agreeing with him, RK Malhotra, President, PCAIT (Progressive Channels
Association of Information Technology), Delhi said, “With the HC excusing the
complainant from appearing in court at every hearing one big impediment is
removed.”

RG Patel, President, ACMA (Ahmedabad Computer Merchants Association),
Ahme­dabad however, opined that apart from these measures more police
involvement would definitely help in cutting down such incidences. “Practically
speaking, unless there is some action taken by the police, it is not of much
help. Even if the complainant is exempted from attending the court the accused
can extend the hearing of the case by being absent,” he commented.

Vinayak Naik, VP, GIBA (Goa IT Business Association), Goa stated, “It will
save us a lot of time and money.” Naik also felt that there are other issues
that need amendments from the court. Such as when a cheque bounces the receiver
of the cheque is also penalized for no fault of theirs.