Archive · 19 Jul 2026
Thane Court Reduces Fine in Cheque Bounce Case
A developer named Shehnawaz Sarfaraz Khan was found guilty in a court case about a bounced cheque worth ₹16 lakh.
The court decided that he should pay a fine of ₹24 lakh instead of the original ₹32 lakh.
The case started because the developer couldn't pay back a loan of ₹20 lakh, and only paid back ₹4 lakh.
The court also said that if the developer doesn't pay the fine, he could go to jail for two months.
The court didn't change the original sentence of six months in jail.
The money from the fine will go to the person who lent the money.
Thane Sessions Court upheld the conviction of Shehnawaz Sarfaraz Khan in a cheque bounce case.
The fine was reduced from ₹32 lakh to ₹24 lakh, twice the outstanding liability of ₹12 lakh.
The accused had repaid ₹4 lakh out of the original ₹20 lakh loan, leaving ₹12 lakh in dispute.
The court noted the absence of the loan agreement in evidence during the trial.
The substantive imprisonment of six months was left unchanged, with a reduced default sentence of two months.
- Who
- Shehnawaz Sarfaraz Khan (Accused), Complainant (not named)
- What
- Cheque bounce case under Section 138 of the Negotiable Instruments Act
- When
- Case arose in October 2011, order passed on July 16, 2026
- Where
- Thane District and Additional Sessions Court, Mumbai
- Why
- Cheque issued by the accused was dishonoured twice due to insufficient funds
Complainant's Perspective
Accused's Perspective
Nature of Transaction
Complainant's Perspective
The complainant claims the Rs 16 lakh cheque was issued for a friendly loan of Rs 20 lakh, with Rs 4 lakh already repaid.
Accused's Perspective
The accused contends the cheque was related to a flat transaction, with only Rs 12 lakh remaining in dispute after repaying Rs 4 lakh.
Existence of Agreement
Complainant's Perspective
The complainant claims there was an agreement for the loan, but it was returned to the accused and not produced in court.
Accused's Perspective
The accused's defense relies on the absence of the agreement in evidence to dispute the complainant's claims.
- Case Type
- Cheque Dishonour
- Original Cheque Amount
- ₹16 lakh
- Initial Fine
- ₹32 lakh
- Reduced Fine
- ₹24 lakh
- Substantive Imprisonment
- 6 months
- Default Imprisonment
- 2 months
- Date of Order
- July 16, 2026
- Judge
- District Judge-3 and Additional Sessions Judge P.V. Ghule