CHANDIGARH, Jan 22: Convicting the proprietor of Shivani Steel Industries, New Delhi, B.N Sarabahi under Section 138 of the Negotiable Instruments Act, UT Judicial Magistrate (First Class) Tejwinder Singh sentenced him to simple imprisonment for a period of one year and directed him to pay a fine of Rs 5,000.In a complaint lodged before the police, Pradeep Sharma, propreitor, Steel Strips Ltd, stated that the accused firm used to supply different materials to him on credit basis.
It was stated that an amount of Rs 4,74,773 was outstanding against the accused firm as on August 1, 1996. A cheque of Rs 1 lakh was later issued which was dishonoured by the State Bank of Patiala on grounds that the funds were insufficient.
Despite the service of demand notices to the accused firm, the payment was not made.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
Printer-friendly page