Thane Court Reduces Fine To ₹24 Lakh In Cheque Bounce Case

A significant ruling was passed by the Thane District and Additional Sessions Court on July 16, 2026, in a cheque dishonour case. The court upheld the conviction of Shehnawaz Sarfaraz Khan, the proprietor of Sagar Developers and Realtors, under Section 138 of the Negotiable Instruments Act.

The case originated from a dispute over a cheque worth ₹16 lakh that was dishonoured due to insufficient funds. According to the complainant, a friendly loan of ₹20 lakh was advanced in October 2011, with the accused repaying ₹4 lakh through two cheques. The remaining liability of ₹16 lakh was covered by the dishonoured cheque.

The accused contended that the cheque was connected to a flat transaction and maintained that only ₹12 lakh remained in dispute after paying ₹4 lakh. During the proceedings, the court noted that the complainant claimed the loan was supported by an agreement, but no such agreement was produced in evidence.

The appellate court observed that the complainant had admitted receiving ₹4 lakh from the accused, reducing the legally recoverable amount to ₹12 lakh. The trial court had failed to account for the partial repayment while imposing a fine equivalent to twice the original cheque amount.

The court reduced the fine from ₹32 lakh to ₹24 lakh, being twice the outstanding liability of ₹12 lakh. The default sentence was also reduced from three months' simple imprisonment to two months. The conviction and the six-month substantive imprisonment were left undisturbed.

The court directed that the entire fine amount of ₹24 lakh be paid to the complainant as compensation upon recovery. This ruling highlights the importance of adhering to the Negotiable Instruments Act and the consequences of dishonouring cheques.

The Thane Sessions Court's decision is a significant one, as it sets a precedent for similar cases in the future. The reduction in fine from ₹32 lakh to ₹24 lakh is a notable aspect of the ruling, as it takes into account the partial repayment made by the accused.

The case also underscores the need for clear documentation and agreements in financial transactions. The fact that the complainant claimed the loan was supported by an agreement, but no such agreement was produced in evidence, highlights the importance of maintaining proper records.

In conclusion, the Thane Sessions Court's ruling in this cheque bounce case is a significant one, with implications for similar cases in the future. The reduction in fine and the emphasis on clear documentation and agreements are key takeaways from this ruling.

The real estate sector, in particular, needs to take note of this ruling, as it involves a developer and a significant financial transaction. The case highlights the need for transparency and accountability in financial dealings, especially in the real estate sector.

Overall, the Thane Sessions Court's decision is a welcome one, as it promotes fairness and transparency in financial transactions. It also serves as a reminder of the importance of adhering to the law and the consequences of dishonouring cheques.

The ruling is also significant for the city of Thane, as it demonstrates the effectiveness of the judicial system in resolving disputes and promoting justice. The Thane Sessions Court's decision is a testament to the city's commitment to upholding the law and protecting the rights of citizens.

In the end, the Thane Sessions Court's ruling in this cheque bounce case is a significant one, with far-reaching implications for the real estate sector and the city of Thane. It promotes fairness, transparency, and accountability in financial transactions, and serves as a reminder of the importance of adhering to the law.