Gujarat High Court Grants Ad-Interim Bail To Film Director Rajkumar Santoshi In Cheque Bouncing Case

The Gujarat High Court on Monday (December 2) granted ad-interim bail to noted film director, screenwriter and producer Rajkumar Santoshi who has been booked in connection with a cheque bouncing case under Section 138 of Negotiable Instruments Act (NI Act).

After hearing the arguments Justice MR Mengdey in his order dictated, “Issue notice returnable on February 13. Learned advocate appearing for the applicant (Santoshi) submits that the applicant has already deposited sum of Rs. 6 Lakhs before Ld. Sessions Court against the order of conviction. The applicant is ready and willing to deposit the remaining amount of 16.5 lakhs before the registry of this court and the demand draft to the said effect is ready. Having regards to, there shall be ad-interim bail in terms of...the applicant shall deposit the amount of Rs. 16.5 lakh rupees before the Registry within the period of one week from today”. 

Appearing for Santoshi, advocate Bhadrish Raju said that the complainant claims to have advanced money to Santoshi amounting to Rs. 17.5 Lakh in one case and Rs 5 Lakh in another, totalling to 22.5 lakh rupees.

"The notice, the complaint...no details as to what date the amount is given. It is just a simpliciter notice saying 'I have given him 17.5 (Lakh) and 5 Lakh'...and 22.5 Lakh is the so called legal dues he claims, and therefore cheques have been given deposited, they have returned unpaid," Raju said. He said that even in the examination in chief the complainant has "simpliciter" in one para said that he had given the money without any description. 

Raju further submitted that now the complainant in his cross examination for the first time has said that, "in fact it is his wife who has paid the accused Rs 20 Lakh in 2010. And against the Rs. 20 Lakh he also admits that, not only Rs 20 Lakh has been repaid to him but a further Rs. 17.5 Lakh has been repaid to him over and above Rs. 20 Lakh...So we have paid him Rs. 37.5 Lakh". 

Raju said that in the cross examination the complainant's submission has become that against Rs. 20 lakh, "he was to receive Rs. 60 lakhs with compensation". 

Raju said that this will go completely against the Gujarat Money Lenders Act as in this case a person is giving Rs. 20 lakh, has actually received Rs. 37.5 lakh when there is no agreement and then his entire stand changes.

Raju said, “In complaint and notice he doesn't disclose this at all, in the chief he doesn't disclose, and the Gujarat Money Lenders Act prohibits the recovery of money by even the way 138 (NI) proceedings in such kind of nature. Over and above, my sentence is suspended before the Sessions Court”. 

Furthermore, Raju said that were two cases listed–one for Rs. 17.5 lakh rupees and other for Rs. 5 lakh rupees resulting to total of 22.5 lakh rupees and Santoshi has deposited Rs. 6 lakhs towards both the cases at the time of suspension of sentence before the Sessions Court.

Therefore, the remaining amount for 22.5 lakhs comes to 16.5 lakh rupees, he said. Raju lastly contented that he has the demand draft ready for Rs. 16.5 lakh today. He said that without prejudice to his contentions this is kind of case absolutely not maintainable against Santoshi and further prayed for depositing the demand draft with the high court's registry.

The matter is next listed on February 13, 2025.

Santoshi had challenged a November 26 order of the sessions court which had confirmed a 2022 magisterial court's order convicting and sentencing him to imprisonment of one year for offence under Section 138 (Dishonour of cheque for insufficiency, etc., of funds in the account) of the Negotiable Instruments Act. He has sought quashing and setting aside of the sessions court's order as well as the magisterial court's order. He further sought acquittal from conviction under Section 138 NI Act. He has additionally sought that pending the final disposal of his main petition, the high court may stay the operation of the sessions court's order as well as all further proceedings and to also grant him bail. 

Case Title: Rajkumar Santoshi v/s State of Gujarat & Anr.