Pachamuthu summoned in cheque bounce case

The summons has come forth based on a complaint moved by a financier S Mukanchand Bothra that on behalf of Vendhar Movies Production Madhan had borrowed Rs 7.5 crore in the presence and consent of one Sinu Nagappan and Pachamuthu. Moreover, at the time of borrowing Pachamuthu had told Bothra that both Vendhar TV and Vendhar movies are one and the same and offered oral concurrence of repayment following which an agreement was entered on January 11, 2016.

But, thereafter repeated requests and demands for repayment as per the assurance given were not adhered to. Madhan claimed that he had transferred some portion of the amount that was borrowed to the account of SRM college. Following this, Pachamuthu, who had conceded to the transfer assured repayment and directed Madhan to issue postdated cheques and sought more time to clear the liability. 

Accordingly, Madhan issued two cheques dated November 28, 2016 for Rs 1 crore and another for Rs 1.6 crores respectively as part of the money borrowed. But when the cheques were presented on February 27, 2017, the same bounced. Noting that the trio deliberately with dishonest and malafide intention to cheat him were yet to repay the money, claimed that the failure to repay the amount covered under the dishonoured cheques within 15 days after the receipt of the statutory notice was an offence under the Negotiable Instruments Act and under 420 of the IPC sought imposition of maximum sentence and to pay double the cheque amounts as compensation.