The order issued by the metropolitan magistrate follows a complaint filed by Delhi-based Hotz Industries and its group company Gujarat Fluorochemicals late last year against DCM Financial Services alleging that the company had defaulted in the payment of ICDs amounting to over Rs 6 crore.

Hotz Industries has also filed a winding up petition and a civil suit before the Delhi high court against DCM Financial Services. Hotz Industries has alleged that it was given a cheque of Rs 1.5 crore dated October 6, 1997, and other cheques which were not honoured by DCM Financial's bankers.

Hotz said it had sent notice under section 138 of the Negotiable Instrument Act to all thedirectors and authorised signatories asking them to pay the due amount within 15 days but DCM has so far failed to comply with the terms of the notice.

DCM Financial Services has been plagued by a host of similar complaints of defaults of deposits and winding-up petitions.

Recently, the Delhi high court issued a notice to the Reserve Bank of India in the case of debt default by DCM Financial Services Ltd. The writ petition was filed in the court by the Academy of Business Studies, which had earlier sought RBI intervention in the default matter. The court had issued notice to the apex bank asking it to show cause as to why the academy petition should not be admitted. In the present case, the court had, on May 26, 1998, ordered that bailable warrants against all the accused be issued but the order was recalled after the counsel for the accused gave an undertaking to the court that Bharat Ram, Vivek Bharat Ram and director OP Gupta will appear on the next hearing on July 2. Similarly, the counsel forParvinder Singh also moved an application for exemption from personal appearance with an undertaking to appear on July 2.

On July 2, the counsel for the accused again sought exemption from personal appearance with an undertaking to appear on July 21, the next date of hearing.