Metropolitan Magistrate Arun Kumar sentenced Ashok Kumar, a Delhi-based businessman, who had availed credit facility from ICICI Bank in 2009 but was unable to repay the same.
The court said provisions of the Negotiable Instruments (NI) Act, 1881 are to "inculcate the faith of business community in transactions through Negotiable Instruments" and no leniency could be shown.
"In view of the aforesaid object and purposes of Section 138 (Dishonour of cheque) of the NI Act, in my considered opinion, not only benefit of Probation of Offenders Act cannot be given to the convict of offence under the NI Act but also no leniency can be shown to him in awarding sentence merely because he was not able to make the payment," the court said.
ICICI Bank had told the court that Kumar had availed Rs 4.54 lakh from it in June 2009 but the cheque issued by him to repay the same was dishonoured with a remark "debit account closed" in January 2010.
The bank after issuing legal notices to Kumar, lodged a complaint under the NI Act before the court.
The accused had denied the allegations saying the cheque in question was taken by the bank as a "blank signed cheque as security" along with four other cheques.