Bombay HC stays order asking Videocon founder Venugopal Dhoot to deposit Rs 6.75 crore in a cheque-bouncing… – Hindustan Times

The Bombay high court (HC) on Monday stayed a magisterial order issued in February directing Venugopal Dhoot, the founder of Videocon Industries Limited (VIL), to deposit interim compensation of Rs 6.75 crore in a bounced cheque case involving the company.

Justice Revati Mohite Dere stayed the February 24 order passed by a metropolitan magistrate court at Ballard Pier in Mumbai after Dhoot’s counsel, senior advocate Aabad Ponda, pointed out that the VIL founder was not the drawer of the cheque, even though he had signed it as an authorised signatory of the firm.

Ponda pointed out that under provisions of the Negotiable Instruments Act, 1881, VIL, and not Dhoot, would be required to deposit any amount, if so directed to by the court.

He cited a Supreme Court (SC) ruling in a bid to bolster his argument.

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Ponda stated that the company was under the control of an Interim Resolution Professional (IRP), which was empowered to represent it in court.

The National Company Law Tribunal (NCLT) had acceded to a plea from a consortium of banks and in June 2018 admitted insolvency proceedings against VIL, which once was a multi-billion global conglomerate and the world’s largest picture tube manufacturer.

NCLT had appointed the IRP to take charge of VIL’s affairs and from that date the board of directors surrendered its control.

Ponda argued that the interim compensation order was infructuous since Dhoot did not plead guilty to the bounced cheque charge.

Bank of Maharashtra lodged the complaint regarding the bounced cheque and Dhoot filed the petition through advocate Akash Menon.

The petition stated that in October 2014, VIL had approached the bank for a working capital term loan of Rs 450 crore. The proposal was approved by the bank on October 22, when the loan agreement was signed by the two parties concerned.

Dhoot claimed that VIL authorities were made to submit blank and signed cheques to the bank at the time of execution of the loan agreement.

Later in April 2017, the bank declared VIL’s loan account a non-performing asset (NPA).

Dhoot claimed that in June 2018, the bank made a bid to encash Rs 33.50 crore through a cheque.

The bank initiated proceedings under section 138 of the Negotiable Instruments Act, 1881 after the cheque bounced, following which the metropolitan magistrate court passed the order on February 24.

Advocate Menon said the HC has issued a notice to the bank.

HC will hear the case next on December 4.