Himachal: One-Year Jail, ₹15 Lakh Fine for Vehicle Loan Defaulter in Cheque Bounce Case

June 19, 2026

Mandi: A court in Mandi, Himachal Pradesh, has convicted a man in a cheque-bounce case, sentencing him to one year of simple imprisonment and a fine of ₹15 lakh. The court’s order specified that failure to deposit the fine amount would result in an additional three months of imprisonment.

The sentence was pronounced by Justice Geetika Yadav, Judicial Magistrate First Class (Court No. 2), Mandi. The case stemmed from a complaint filed by Shriram Transport Finance Limited, located at Gutkar in Sadar Tehsil. The company had lodged a complaint under Section 138 of the Negotiable Instruments Act against Shardanand, a resident of village Bah (Nagwain), Aut.

Cheque Issued for Loan Repayment

According to the complaint filed in court, the accused, Shardanand, had taken a loan of ₹8,16,500 from the company to finance a vehicle. He failed to pay the loan installments on time, causing the outstanding amount to rise to ₹10,80,798. Subsequently, the accused issued a cheque for ₹10 lakh to the company for payment.

Cheque Bounced Due to Insufficient Funds

When the company presented the cheque to the bank for payment, it bounced due to insufficient funds in the account. Following this, the company initiated legal proceedings by sending a 15-day notice to the accused, demanding payment. However, the amount was not paid within the stipulated period, prompting the company to approach the court.

During the hearing, the complainant presented both documentary and oral evidence. After examining all facts and evidence, the court concluded that the charge of cheque bouncing against the accused had been proven beyond reasonable doubt. On this basis, the court convicted the accused and sentenced him to one year of imprisonment and a fine of ₹15 lakh.