It was a packed courtroom at Saket on Thursday when the Additional Sessions Judge read out the order, leaving little room for doubt about where the appeal stood. The Sessions Court refused to interfere with a cheque bounce conviction involving a multi-crore transaction, holding that the trial court had applied the law correctly and with sufficient care. The appeal by Mohd. Danish Ahmad against his conviction under the Negotiable Instruments Act was dismissed in full.
Background
The case traces back to a complaint filed by builder Mohd. Taiyyab, who alleged that he had invested over ₹4 crore with the accused between 2012 and 2013. According to the complaint, two cheques issued by Ahmad-together worth ₹47 lakh-were dishonoured due to insufficient funds.
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After a full trial before the Metropolitan Magistrate at Saket Courts, Ahmad was convicted under Section 138 of the Negotiable Instruments Act and sentenced to six months’ simple imprisonment, along with compensation of ₹72 lakh. Challenging this, Ahmad moved the appellate court, arguing that the cheques were merely “security cheques” and that no legally recoverable debt existed.
Court’s Observations
The appellate judge walked through the evidence patiently, often pausing to clarify basic legal principles for the record. “Once the execution of the cheque is admitted, the law presumes that it was issued towards a debt,” the court observed, explaining that the burden then shifts to the accused.
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The defence argument-that the money was advanced in cash and without any written agreement-did not impress the court. The judge noted that the accused himself admitted receiving around ₹2 crore. “Having accepted such a large sum without documentation, the accused cannot now question the absence of paperwork,” the bench remarked.
On the issue of the cheques being security instruments, the court relied on Supreme Court rulings to underline that even security cheques can attract criminal liability if the underlying obligation is not met. A minor typographical error in the legal notice was brushed aside as inconsequential, with the judge stating it caused “no real prejudice” to the accused.
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Decision
Concluding that the accused had failed to rebut the statutory presumption under the law, the court dismissed the appeal. The Sessions Judge upheld both the conviction and the sentence, including six months’ simple imprisonment and payment of ₹72 lakh as compensation. With that, the matter ended where it began-firmly against the appellant.
Case Title: Mohd. Danish Ahmad vs The State (NCT of Delhi) & Anr.
Case No.: Criminal Appeal No. 184/2023
Case Type: Criminal Appeal (Cheque Bounce Case under Section 138, Negotiable Instruments Act)
Decision Date: 26 December 2025
