Ayodhya Mahato, found guilty of cheque bounce, sentenced to one year of simple imprisonment and ordered to pay Rs 20 lakh in compensation
Hearing a cheque bounce case, the court of first class judicial magistrate Siddhant Tigga of Jamshedpur found Ayodhya Mahato guilty, sentencing him to one year of simple imprisonment under the NI Act.
JAMSHEDPUR – On Thursday, Ayodhya Mahato, a resident of Patamda, was sentenced to one year of simple imprisonment by the court of first class judicial magistrate Siddhant Tigga for a cheque bounce case.
Mahato has also been ordered to pay compensation of Rs 20 lakh along with the cheque amount.
In case he fails to pay the compensation, he will undergo an additional imprisonment of 30 days.
In 2016, Mahato had bought a truck by taking a loan from Cholamandalam Investment and Finance Company Limited but failed to pay the installments.
He owed the company a total of Rs 15 lakh 9 thousand 823.
A cheque issued in favor of Cholamandalam for the outstanding amount bounced due to insufficient funds.
Consequently, Cholamandalam Investment and Finance Company Limited filed a complaint against Mahato under the NI Act in 2019.
Advocates DR Patnaik and CR Nandi represented the company in court, with representative Rohit Kumar Singh presenting the case.
The court’s decision emphasizes the importance of fulfilling financial obligations and the legal consequences of cheque bounce cases.
The sentencing of Mahato serves as a reminder of the legal repercussions for failing to honor financial commitments.
