Ranchhodbhai Nagarbhai Gambhava Vs State of Gujarat & Anr. (Gujarat High Court)
The Gujarat High Court has granted permission to a complainant to file an appeal against a trial court’s decision to acquit an individual accused in a cheque bounce case amounting to ₹6 lakh. The High Court, in its order for Ranchhodbhai Nagarbhai Gambhava Vs State of Gujarat & Anr., observed that, on a preliminary basis, the evidence and documents on record appear to have been improperly appreciated by the lower court.
The case originates from a complaint filed under Section 138 of the Negotiable Instruments Act, 1881 (NI Act), an act that criminalises the dishonour of a cheque issued for the discharge of a legally enforceable debt or liability.
Background of the Dispute
According to the applicant, Mr. Ranchhodbhai Nagarbhai Gambhava, he had a pre-existing relationship with the accused (respondent no. 2) and had advanced a friendly loan totaling ₹6,00,000. This amount was reportedly given in two tranches: an initial sum of ₹5,00,000, followed by an additional ₹1,00,000.
To discharge this liability, the accused issued a cheque dated October 3, 2023, for the full amount of ₹6,00,000, drawn on his account with the Union Bank of India. However, when Mr. Gambhava deposited the cheque, it was returned unpaid with the reason “Funds Insufficient.”
