Shriram Finance Cheque Bounce Case: Md. Nasir Convicted Over ₹2 Lakh Cheque: Delhi Court

A Judicial Magistrate First Class court at Dwarka, New Delhi, has convicted Md. Nasir in a cheque dishonour case filed by Shriram Transport Finance Co. Ltd. The judgment was delivered on October 9, 2026, by Ms. Meena Chauhan, Presiding Officer of the NI Act-08 court in the South-West District.

The complaint was filed under Section 138 of the Negotiable Instruments Act, 1881, after a cheque for ₹2 lakh issued by Nasir was returned unpaid due to insufficient funds. The cheque was dated September 25, 2018, and was drawn on Canara Bank’s Hathin, Haryana branch.

Dispute Over Additional Loan Amount

According to the complainant, the company had sanctioned a vehicle loan of ₹10 lakh for a vehicle bearing registration number HR74A3760. Due to an error, an additional amount was transferred to Nasir’s bank account. The company claimed that Nasir acknowledged receiving the excess money and agreed to return it through an affidavit and cheques.

The disputed cheque was dishonoured, and the company sent a legal demand notice dated October 10, 2018. Nasir did not pay the cheque amount, leading to the complaint.

Nasir argued that the cheque had been given as security and was misused by the finance company. He also claimed to have repaid part of the amount through bank transfers and monthly instalments. He further alleged that the company had repossessed his vehicle.

Court’s Findings

The court noted that Nasir had admitted his signature on the cheque and acknowledged the affidavit recording his liability for the additional amount. However, he did not produce documentary evidence to support his claims of repayment or establish that the cheque had been misused.

The court also rejected his defence that he had not received the legal demand notice, observing that the notice had been sent to his correct address. It held that merely describing a cheque as a security cheque did not remove liability when an outstanding debt remained unpaid.

The court observed, “The accused must show that there was no legal debt or liability outstanding towards the complainant, which the accused failed to do in the present case.”

Final Decision

The court concluded that the requirements for an offence under Section 138 of the Negotiable Instruments Act had been established. It held Md. Nasir guilty of cheque dishonour and convicted him.

The court directed that a copy of the judgment be provided to the convict free of cost and ordered that he be heard on sentencing. The judgment does not specify the sentence imposed.

Case Details

Case Title: Shriram Finance Ltd. vs. Md. Nasir

Case Number: CC NI Act No. 44336/2018

Judge or Bench: Ms. Meena Chauhan, Judicial Magistrate First Class, NI Act-08, South-West District, Dwarka Courts, New Delhi

Decision Date: October 9, 2026