Reliance Capital files case against The Loot

MUMBAI: Reliance Capital Ltd, has filed a case against The Loot (India) Private Ltd and its directors alleging cheque bounce of Rs25 lakh. The Loot is a multi-branded discount store, offering customers a wide range of products with a minimum of 25% to 60% discounts on national and international brands throughout the year.

The directors of the company against whom the case is filed are Jayprakash Pannalal Gupta and Ruchita Jayprakash Gupta.

According to the legal document reviewed by ET, The Loot and its directors had availed a loan from Reliance Capital. For due repayment the accused (Loot) issued a cheque to the non banking finance company. However, the complainant --Reliance Capital in the legal document said that,the cheque was returned with a remark 'Funds Insufficient'.''

Reliance Capital the complainant sent a statutory legal demand notice on February 1, 2012 under Section 138 of Negotiable Instrument Act, 1881 to the Accused (The Loot) in respect of the said dishonored cheque.

The Accused (The Loot) was given 15 days time under the regulatory notice under section 138 of the Negotiable Instrument Act 1881, to make payment of the dishonoured cheque,'' said the legal document. The Accused have failed and neglected to make payment of the dishonored cheque,'' it said.