Pvt co head faces cheque bounce wrath
The Delhi High Court has asked the director of a private company to pay Rs five lakh towards payment of a loan to an advocate against whom she had issued three different cheques that bounced in January 2003.
By PTI |
NEW DELHI: The Delhi High Court has asked the director of a private company to pay Rs five lakh towards payment of a loan to an advocate against whom she had issued three different cheques that bounced in January 2003.
Rejecting the submission of Meenu Bhist, Director of L P Papers Ltd. of Philibhit in Uttar Pradesh, for quashing of a criminal case against her under the Negotiable Instruments Act initiated by a practising lawyer Vijay Kumar Gupta, Justice S Ravinder Bhat said if the amount was not paid to Gupta, she was liable to face criminal proceedings.
Justice Bhat also dismissed the contention of Bhist's counsel that Gupta's act of lending money as a lawyer was not only violating of Advocates Act but also against the Punjab Registration of Money Lender's Act.
"The mere circumstance that the complainant is an advocate and that he had lent some amount to the company itself would not lead to the interference that the agreement was hit by unlawful consideration or that he was indulging in money lending," the Court observed and directed Bhist to appear before the trial court on the next date.
Gupta, a practising lawyer here, alleged that through an agreement he had lent Rs five lakh to the company. In January, 2003, Bhist had issued three different cheques to him on behalf of the company to satisfy the liability.
However, the cheques got rejected and when Gupta brought it to the notice of the company's Director, his request was turned down.
Rejecting the submission of Meenu Bhist, Director of L P Papers Ltd. of Philibhit in Uttar Pradesh, for quashing of a criminal case against her under the Negotiable Instruments Act initiated by a practising lawyer Vijay Kumar Gupta, Justice S Ravinder Bhat said if the amount was not paid to Gupta, she was liable to face criminal proceedings.
Justice Bhat also dismissed the contention of Bhist's counsel that Gupta's act of lending money as a lawyer was not only violating of Advocates Act but also against the Punjab Registration of Money Lender's Act.
"The mere circumstance that the complainant is an advocate and that he had lent some amount to the company itself would not lead to the interference that the agreement was hit by unlawful consideration or that he was indulging in money lending," the Court observed and directed Bhist to appear before the trial court on the next date.
Gupta, a practising lawyer here, alleged that through an agreement he had lent Rs five lakh to the company. In January, 2003, Bhist had issued three different cheques to him on behalf of the company to satisfy the liability.
However, the cheques got rejected and when Gupta brought it to the notice of the company's Director, his request was turned down.
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