The Hindu : New Delhi News : Sentenced in cheque bouncing case

Online edition of India's National Newspaper
Wednesday, Dec 08, 2004

New Delhi

New Delhi

Sentenced in cheque bouncing case

By Our Staff Reporter

NEW DELHI, DEC. 7. A Delhi court has sentenced the managing director of Montari Industries Limited here, Bhai Manjit Singh, to one year of simple imprisonment in a cheque bouncing case, while the chairman of the company, Bhai Mohan Singh, has been released on probation on good conduct and behaviour on furnishing a personal bond of Rs. 2 lakhs with one surety of a like amount for a period of one year.

However, the court suspended the sentence of Bhai Manjit Singh and released him on bail on an application by him saying that he would be filing an appeal against his conviction.

The Metropolitan Magistrate, Vikas Dhull, convicted the two, holding them guilty of defaulting on repayment of a loan of Rs. 1.5 crore which the accused company had taken from the Capital-based Messrs Som Datt Finance Corporation Ltd.

"It has been proved on record by the prosecution beyond reasonable doubts that the offence under Section 138 of the Negotiable Instruments Act (cheque bouncing) has been committed by the accused company and it has been also proved by the that the two accused being the chairman and the managing director were in-charge and responsible for the accused company for the conduct of its business at the time when the offence was committed,'' the MM said.

"Accordingly, the accused company, being represented through accused Bhai Manjeet Singh, and Bhai Mohan Singh and Bhai Manjit Singh are convicted for the offence under Section 138 read with Section 141 of the Act,'' the MM ordered.

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