Popular comedian and actor Rajpal Yadav recently surrendered before Tihar Jail following directions from the Delhi High Court in a long-pending cheque bounce case. The development has raised questions about what a cheque bounce case is, what punishment the law provides, and whether imprisonment clears financial liability.
What Is a Cheque Bounce Case?
A cheque bounce case arises under Section 138 of the Negotiable Instruments Act, 1881. When a person issues a cheque and it is returned by the bank due to insufficient funds or related reasons, it becomes a criminal offence.
The legal process begins when the cheque recipient sends a legal notice within 30 days of the cheque being dishonoured. The issuer then gets 15 days to clear the dues. Failure to pay allows the complainant to file a criminal case in court.
What Is the Punishment?
Under Section 138, a person can face:
- Up to two years of imprisonment,
- A fine up to twice the cheque amount,
- Or both imprisonment and fine.
Courts may also order the accused to pay compensation to the complainant.
Does Jail Cancel the Debt?
No. Serving a jail sentence does not wipe out the outstanding amount. Even after imprisonment, the accused remains legally bound to repay the cheque amount along with any compensation or penalty ordered by the court. Non-payment can lead to further recovery proceedings, including attachment of property.
Rajpal Yadav’s Case Explained
The dispute dates back to 2010 when Rajpal Yadav took a loan of approximately ₹5 crore from a Delhi-based business entity to produce and direct his film “Ata Pata Lapata.” The film failed commercially, and he allegedly defaulted on repayment.
The cheques issued towards repayment reportedly bounced, leading to legal proceedings. With interest and penalties, the outstanding amount is said to have risen to nearly ₹9 crore.
A lower court sentenced him to six months of imprisonment. The Delhi High Court reportedly granted him multiple opportunities to clear the dues, but after non-compliance, he surrendered before Tihar Jail as per court directions.
Before surrendering, Rajpal Yadav reportedly expressed emotional distress, stating that he was facing financial hardship and felt isolated.
What Legal Options Does He Have Now?
Legal experts suggest the following possible options:
- Settlement with the complainant (compounding of offence).
- Filing an appeal in a higher court.
- Seeking permission to pay the amount in installments.
- Requesting suspension of sentence upon partial payment.
However, unless the dues are settled or legal relief is granted, financial liability continues.
