Srinagar Court awards fruit trader 2.82 lakh in cheque bounce case

Srinagar: A local court in Srinagar on Friday ordered the recovery of 2.82 lakh rupees in favour of a Fruit Mandi trader in Parimpora, along with interest after the defendant failed to deliver fruit produce and subsequently issued a cheque that later bounced due to insufficient funds.

The plaintiff (Bashir Ahmad Dar) engaged in the fruit trade—had paid the defendant ( Akhter Ahmad Ganie) an advance of ₹2,82,000 in 2024 for supply of fruit after harvest. 

However, the defendant didn’t delivered the fruit produce nor returned the payment. Instead, he issued a cheque (No. 176376 dated 24 December 2024) drawn on his account at J&K Grameen Bank that was returned unpaid with the remark “Funds Insufficient.” 

Following this, the plaintiff filed a summary suit under Order 37 of the Civil Procedure Code (CPC) seeking recovery of the amount along with interest.

The court issued summons through ordinary process and registered post. Although the defendant was duly served, he failed to appear or contest the suit.

The Court under Order 37 Rule 2(3) of the CPC maintains that if a defendant does not enter an appearance, the allegations in the plaint are deemed admitted, and the plaintiff becomes entitled to a decree.

Upon examining the pleadings and the dishonoured cheque, the court held that all procedural requirements under Order 37 had been satisfied by the plaintiff.

The court of Justice Anjum Ara decreed recovery of ₹2,82,000, along with simple interest at 6% per annum from the date of filing of the suit until realisation. The plaintiff was also awarded costs of litigation.


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