Man in Gujarat gets 1-year jail for defaulting on vehicle loan

Rajpipla: Rajpipla civil judge and judicial magistrate of first class court punished a customer with one-year imprisonment for not paying the loan taken from a finance company for buying a vehicle.

Mansukh Panchiyabhai Vasava, from Khojalvasa village in Nandod taluka, took a loan of Rs 1 lakh from Shriram Transport Finance Company Ltd to buy a vehicle for his business. He purchased a vehicle with the number GJ 16B 4515 from the loan. The RC book of the vehicle contains a note of hypothecation in the name of the complainant, Shriram Transport Finance Company Ltd. The complainant repeatedly asked the customer in written and oral form to pay the loan instalments regularly by issuing notices. On 23rd August 2019, Vasava visited the branch office and gave a cheque for Rs 1,24,296 from the Central Bank of India, Rajpipla branch for the loan payment. The complainant submitted the cheque to the Axis Bank Rajpipla branch on 26th August 2019, but it bounced the next day.

So, the finance company filed a case against Vasava, and the court declared him guilty of a punishable offense under section 138 of The Negotiable Instrument Act and sentenced him to one year of imprisonment. DeshGujarat