A Delhi court on Tuesday sentenced Bhai Manjit Singh, the managing director of Montari Industries, to imprisonment of one year and imposed a fine of Rs 25 lakh (Rs 2.5 million) each on him and his father, Bhai Mohan Singh, the chairman of Montari Industries, on a cheque-bounce case filed by Mudra Ispat, an Ispat Group company, eight years ago.
Mudra Ispat had filed the case under Section 138 read with section 141 of the Negotiable Instruments Act.
While the two were convicted on May 24, the sentence was handed out on June 1 by Ashwani Sarpal, Metropolitan Magistrate, Patiala House.
In its complaint, Mudra Ispat had alleged that Montari Industries, a pesticides company, owed Rs 64,76,546
to it. In order to discharge part of the liability, Montari issued a cheque dated October 18, 1995, for Rs 50,00,275 in favour of Mudra Ispat.
But the cheque was dishonoured and Mudra Ispat moved court. While convicting Bhai Manjit Singh and Bhai Mohan Singh, the magistrate had acquitted other company officials named in the complaint.
The court also asked Montari Industries to pay Rs 50,00,275, which was the amount of the cheque that was dishonoured, to Mudra Ispat within one month.
Montari Industries was declared sick some years ago and is currently on the operating table of the Board for Industrial & Financial Reconstruction. Bhai Mohan Singh is also the chairman emeritus of Ranbaxy Laboratories Ltd.
