Trust head sentenced to one-year jail for loan default, gets bailhttps://indianexpress.com/article/cities/chandigarh/trust-head-sentenced-to-one-year-jail-for-loan-default-gets-bail-5215075/

Trust head sentenced to one-year jail for loan default, gets bail

As per the petition, at the time of the complaint, the outstanding was Rs 22.22 crore, which was intimated to the accused. Following this, the accused had issued four cheques of Rs 82.11 lakh, Rs 25 lakh, Rs 25 lakh and Rs 23.91 lakh to Dena Bank for repaying his pending installments and the interest.

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As per the petition, at the time of the complaint, the outstanding was Rs 22.22 crore, which was intimated to the accused. Following this, the accused had issued four cheques of Rs 82.11 lakh, Rs 25 lakh, Rs 25 lakh and Rs 23.91 lakh to Dena Bank for repaying his pending installments and the interest. (Representational Image)

The district court of Chandigarh Tuesday sentenced the chairman of an educational and charitable trust to one year’s imprisonment under The Negotiable Instruments Act. The court of Iram Hasan, Civil Judge, also directed the convict, Anshu Kataria, chairman of Aryans educational and charitable trust, to pay back the loan he had taken from the complainant bank.

The convict, who was sentenced under Section 138 of the Negotiable Instruments Act, however, was released on bail later as the sentence was less than three years’. A petition against Kataria was moved by Dena Bank, as per which the accused had availed various-term loans from their Sector 38, Chandigarh, branch.

As per the petition, at the time of the complaint, the outstanding was Rs 22.22 crore, which was intimated to the accused. Following this, the accused had issued four cheques of Rs 82.11 lakh, Rs 25 lakh, Rs 25 lakh and Rs 23.91 lakh to Dena Bank for repaying his pending installments and the interest.

However, when a bank employee tried to get the cheques encashed, he learnt that the account did not have the funds as mentioned in the four cheques issued by the accused. The complainant bank officials then again intimated the accused about the matter and gave him two months’ time to make the payment.

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When the complainant bank again attempted to get the cheques encashed after two months, they bounced again. Following this, the complainant bank sent a legal notice to the Aryans educational and charitable trust in December 2015, but when the accused failed to make the payment, the bank then moved to court under The Negotiable Instruments Act.

After hearing the arguments and going by the evidences of the case, the court convicted the accused.