Chandigarh, Oct. 11 -- A local court sentenced Pankaj Goel, authorised signatory of Svocan Handicrafts, to nine months in jail for dishonouring a cheque worth Rs.4 lakh issued in favour of HDFC Bank. The court also directed him to pay compensation equivalent to the cheque amount, along with 6% annual simple interest from the cheque date until the judgment.

Judicial magistrate first class Bhawna Gera, in her October 8 judgment, convicted Goel under Section 138 of the Negotiable Instruments Act, which deals with cheque dishonour in specified circumstances.

The case stemmed from a business loan of almost Rs.15 lakh taken by Svocan Handicrafts from HDFC Bank. According to the bank, the borrower failed to adhere to the repayment schedule and...