The High Court has ruled that an accused person in a cheque dishonour case should not be sent to jail or have a custodial sentence upheld if the full financial liability mentioned in the cheque has been paid and the parties have reached a settlement.

The court made the observation while disposing of a criminal appeal filed under Section 138 of the Negotiable Instruments Act, 1881.

The verdict was delivered by a single-member High Court bench headed by Justice Md Bashir Ullah in the case of Md Abdul Hannan Master vs the State and Others.

The court said the primary objective of cheque dishonour cases is not to punish or imprison an individual, but to ensure recovery of the outstanding money.

In the case, the High Court cancelled the one-year imprisonment imposed on Abdul Hannan Master after he fully repaid the cheque amount and settled the matter with BRAC Microfinance. The court also ordered that Tk 14,100 deposited with the lower court before the appeal be handed over to BRAC Microfinance.

Background of the Case

Md Abdul Hannan Master, a resident of Sirajganj, had taken a loan of Tk 50,000 from BRAC Microfinance. He later repaid Tk 21,875 and issued a cheque from the Sirajganj branch of Islami Bank Bangladesh Limited for the remaining Tk 28,125.

The cheque was presented to the bank for encashment on January 19, 2009, but was dishonoured on February 10 that year due to insufficient funds.

After a legal notice was served and the outstanding amount remained unpaid, a complaint case was filed in 2009 under the relevant provisions of the law.

The case was transferred to the Sirajganj District and Sessions Judge’s Court for trial in 2012. As the accused was absconding, the trial was completed in his absence.

On March 19, 2013, the court convicted him under Section 138 of the Negotiable Instruments Act and sentenced him to one year of rigorous imprisonment and fined him Tk 84,375.

Hannan Master later filed a criminal appeal before the High Court and sought bail. The High Court granted him bail for one year on August 7, 2018.

While the appeal was pending, he paid the remaining amount owed to BRAC Microfinance. Subsequently, an agreement of compromise was signed between Abdul Hannan Master and BRAC Microfinance on July 21 this year.

Jail Term Cancelled, Fine Reduced

In its verdict issued on September 3, the High Court considered the facts and circumstances of the case, the gravity of the offence and the fact that the appellant had paid the full cheque amount.

The court upheld his conviction but reduced the fine from Tk 84,375 to Tk 28,125, equivalent to the amount stated in the cheque. At the same time, the court cancelled his one-year prison sentence.

The court noted that the convicted appellant had already deposited Tk 14,100 with the trial court before filing the appeal and subsequently paid the remaining amount directly to the complainant, BRAC Microfinance.

The court directed the concerned court to hand over the deposited Tk 14,100 to BRAC Microfinance immediately after proper identification.

It also ordered that a copy of the judgment, along with the case records, be sent to the concerned court without delay.

Lawyer’s Statement

BRAC Microfinance lawyer Md Jisan Mahmud said the court had demonstrated an exceptional application of a humanitarian approach alongside legal justice through the verdict.

He said their primary objective was to recover the outstanding money, not to unnecessarily punish anyone. Since the appellant had paid the full cheque amount and signed a compromise agreement, BRAC Microfinance had taken a positive position on waiving the prison sentence.

He said the organisation had no objection to the High Court cancelling the appellant’s jail term while retaining a fine equivalent to the cheque amount, and welcomed the court’s justice-oriented decision.

No lawyer appeared for the appellant when the verdict was delivered.

Lawyer Md Jisan Mahmud, assisted by lawyer Tasnuva Kaiser, represented BRAC Microfinance, while Deputy Attorney General Md Mizanur Rahman and Assistant Attorney General Md Sirajul Karim (Rabi) represented the state.