Cheque-bounce case: Prosecution proceedings against Sarath Kumar upheld

In repayment of the amount, Sarath Kumar had issued undated cheques, but they bounced in March 2017, and also mortgaged certain properties in lieu of the principal amount due with interest.
The Madras HC has upheld the prosecution proceedings initiated against actor-turned politician R Sarath Kumar (File | EPS)
The Madras HC has upheld the prosecution proceedings initiated against actor-turned politician R Sarath Kumar (File | EPS)

CHENNAI: The Madras High Court has upheld the prosecution proceedings initiated against actor-turned politician R Sarath Kumar in a cheque-bounce case, pending before a magistrate court at  Saidapet.

According to advocate Abudukumar, his client Radiance Media Private Limited at Nandanam, a firm lending money for production of movies, had lent huge sums to Magic Frames at Teynampet, in which Sarath Kumar, his wife R Radhikaa and one Listin Stephen are partners, in 2014. 

In repayment of the amount, Sarath Kumar had issued undated cheques, but they bounced in March 2017. He had also mortgaged certain properties in lieu of the principal amount due with interest. As all the transactions were not up to the satisfaction of the lender, it filed cases, which were pending before the Fast Track Court-III at Saidapet.

Aggrieved all the three moved the High Court to quash the proceedings. Justice G K Ilanthiraiyan, before whom the petitions came up for final hearing on Wednesday, refused to quash the proceedings in respect of the second petitioner - Sarath Kumar, alone. 

The alleged cheques were issued by him in his individual capacity. Though the complaints were lodged under section 138 read with 141 and 142 of the Negotiable Instruments Act, except Sarath Kumar, the other petitioners are not liable to be prosecuted. 

Though these cheques were also issued towards the liability for the loan obtained by all the partners on behalf of the partnership firm, the cheques were issued only by Sarath Kumar in his individual capacity. As such “this court is inclined to quash the proceedings against other petitioners,” the judge said.

The judge partly allowed the criminal original petitions and quashed the proceedings on the file of the Saidapet court. 

The judge dismissed the petitions in respect of Sarath Kumar and directed the lower court to complete the trial within six months.

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