Penalty in Check Return Case: Account Holder Sentenced to 2 Years by Court for Defaulting on ₹17.05 Lakh Loan

In 2016, a customer from the Vapi GIDC branch of the Sardar Bhiladwala Pardi Co-operative Bank applied for a loan to purchase a tempo. Upon approval of the application, the bank disbursed the loan amount into the borrower’s account with an interest rate of 11% for a tenure of 84 months. However, the borrower defaulted on the monthly installments, leading to the bank declaring the loan as non-performing. Subsequently, the borrower handed over a check to the bank employee, which bounced.

As a result, a criminal case was filed against the borrower. During the proceedings in court, the defendant’s lawyer, Jay Patel, presented influential arguments, leading to the case being heard in the first-class court of the judicial magistrate at Valsad. The presiding judge, Ashwin Chaganbhai Sakhiya, found the accused guilty and pronounced a sentence of two years’ imprisonment.

In 2016, Sardar Bhiladwala Pardi Co-operative Bank’s account holder, Sanket Kamleshbhai Shukla, applied for a loan of ₹17.05 lakh to purchase a tempo at the Vapi GIDC branch. The loan was approved on January 25, 2016, with an interest rate of 11% for a tenure of 84 months. The bank provided information to the borrower regarding the regular repayment of the loan every month.

However, from January to June, Sanket Shukla did not fulfill the monthly installments. Upon inquiry by the bank employees, Sanket Shukla issued a check of ₹1.23 lakh to the bank. The check bounced due to insufficient funds in Sanket Shukla’s account. Subsequently, Sardar Bhiladwala Pardi Co-operative Bank’s head clerk filed a complaint against Sanket Shukla. The case proceeded to court, where the defendant’s lawyer, Jay Patel, presented influential arguments, leading to the case being heard in the first-class court of the judicial magistrate in Vapi. The court found Sanket Shukla guilty and pronounced a sentence of two years’ imprisonment.

Additionally, the court ordered Sanket Shukla to pay a fine of ₹1.23 lakh along with 6% interest within 30 days. Failure to pay the fine would result in further imprisonment for up to 3 months.