MUMBAI, Feb 5: Bank of Madura has filed a criminal suit against Santosh Bagla-controlled Rs 80-crore Bhupendra Industries for dishonouring cheques worth Rs 5 crore issued by the company to the bank alleging that the company has committed an offence under the Section 138 of the Negotiable Instruments Act 1881.The bank had filed a winding up petition in October last year in Mumbai high court against Bhupendra Industries for non-payment of dues worth Rs 5 crore. Bhupendra Industries has so far not submitted its response to the allegations made by Bank of Madura.
When contacted by The Financial Express, the company officials refused to comment. However, they admitted that the reply was not yet made by the company disputing the allegations made against it. The Mumbai high court has appointed an official liquidator to take charge of the total assets of Bhupendra Industries, a Mumbai-based manufacturing company and restrained it from selling or transfering its assets.
The high court's decision follows thecompany's inability to pay Rs 5 crore accepted by it from Tuscon Export, a CRB group company.
"Bhupendra Industries has clarified in a court proceeding that no formal transaction was done between the two companies. As per the documents available with us it is clear that the bills of exchange drawn in favour of Bank of Madura by Tuscon Exports, a CRB group company, on Bhupendra Industries were either accommodation or bogus bills. It is also clear that some kind of relationship is existing between Bhupendra Industries and the CRB group company Tuscon Exports," said Nishit Dhruva, counsel for the petitioner. "The company unconditionally accepted these bills of exchange issued by the CRB group company which were co-accepted by CRB Capital Markets. This clearly establishes a link between the two," he said. Bank of Madura has stated in its petition that an amount worth Rs 5 crore was drawn by way of bills of exchange in favour of the bank by Tuscon Exports on Bhupendra Industries over the last few years.
It hasfurther stated in its affidavit that Tuscon Exports had an arrangement with Bank of Madura for discounting bills worth Rs 5 crore including other credit facilities and from time to time the company availed of the credit facilities extended to it by the bank. Thus, Bank of Madura became the holder of these bills of exchange.
To clear its liability, Bhupendar Industries issued five post-dated cheques to the bank. In six months, the cheques bounced thrice, the Bank of Madura petition said. Bhupendra Industries manufactures steel rods, coil sheets and wires. The company has a share capital of Rs 9.59 crore and a net worth of Rs 21.25 crore in March 1996. Last year it posted a net profit of Rs 1.98 crore.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
