Palghar Court Convicts Man For Cheque Bounce, Orders ₹11.30 Lakh Compensation Or 6 Months Jail

Palghar, Maharashtra, Feb 03: A Judicial Magistrate First Class Court at Palghar has convicted Manish Sheth (45) for the offence of cheque dishonour under Section 138 of the Negotiable Instruments Act, 1881, and ordered him to pay double the cheque amount as compensation, failing which he will undergo six months’ simple imprisonment.

The judgment was delivered on February 2, 2026, by Judicial Magistrate P S G Chalkar.

Background of the case
The case, represented by Advocates Dharmendra Bhatt and Hemangi Patil, was filed by Nalmati Ramatulsi (68), a resident of Boisar, who is engaged in money-lending through her licensed firm, Tulasi Financial Services.

As per the case, the accused had borrowed ₹4.30 lakh from the complainant in August 2018 for business purposes and executed a promissory note agreeing to repay the amount with 2% monthly interest.

Subsequently, in October 2019, the accused issued a cheque for ₹5.65 lakh towards repayment of the loan along with interest. However, when the cheque was deposited, it was returned unpaid with the remark “Funds insufficient”.

Despite the issuance of a statutory legal notice in November 2019, the accused failed to make the payment within the stipulated period, leading to the filing of the complaint.

Court’s findings
After reviewing the evidence, the court held that the cheque was issued towards repayment of a genuine loan and that all legal requirements were met. It found that the accused failed to disprove his liability. The court also rejected claims regarding name discrepancies and non-receipt of notice.

Conviction and sentencing
Considering the nature of the offence and the objectives of the Negotiable Instruments Act, the court convicted the accused under Section 138. Taking into account the accused’s dependent family, the court refrained from immediate imprisonment and directed him to pay double the cheque amount, totalling ₹11.30 lakh, within seven days.

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The court further stated that in case of default, the accused shall undergo six months’ simple imprisonment. The recovered amount will be paid to the complainant as compensation under Section 357(1)(b) of the CrPC.

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