BENGALURU: A magistrate court has convicted the directors of a private firm under the Negotiable Instruments Act in a cheque bounce case and imposed a fine of `1 crore on them.
XXVII ACMM Judge N Muniraja imposed the fine while allowing the complaint filed by Bunty K Mehta, proprietor of FS Enterprises, Andrahalli Main Road in the city.
The fine was imposed on Techsine EQ Pvt Ltd, its managing director K S Ashwathanarayana and director Arun Kumar. In the judgment dated July 3, 2017, the judge said the directors of the company have to undergo simple imprisonment for a period of six months if they failed to pay the fine.
Of the total fine, `99.90 lakh will go to the complainant as compensation and `10,000 to the state.
Advocate M R Balakrishna, the counsel of the complainant, argued that his client, who supplies electronic transformers laminations (ETLs), was requested by the company to supply them his products in 2005.
Accordingly, Mehta supplied ETLs from 2005 till June 15, 2011. As per the financial statements of the complainant, the accused paid `77,25,046 through a cheque. But when Mehta presented the cheque to his bank, it was dishonoured, the counsel informed the court.
As part of legal action, the complainant issued legal notice to the company to their address in 2nd Phase Peenya but it was returned.Later, notice was issued to another address but the company failed to make any payment, Balakrishna argued.