HC stays arrest proceedings against liquor baron Vijay Mallya

New Delhi, May 21: Liquor baron and Rajya Sabha Member Vijay Mallya might have emerged as a big player in the international business arena, but he is pitted against a small-time investor in the Delhi District courts for a paltry sum of Rs 873.43.

United Breweries chairman and managing director Mallya, charged for not appearing before a city court in an alleged case of cheating despite several summons, had approached the Delhi High Court for quashing of a non-bailable warrant (NBW) against him.

After hearing the arguments, Justice H R Malhotra stayed the proceedings against him.

Counsel appearing for Mallya submitted that he was not present in Delhi on the date of alleged refusal as mentioned on the registered post envelope purported to have been sent to him at 20, SP Marg, New Delhi, a guest house of one of the group companies of the UB group.

Patiala House District Court Metropolitan Magistrate Vikas Dhull on January 23, 2006 had issued NBW against Mallya, who did not appear before the court to defend himself.

He has been charged under the Sections 138, and 142 of the Negotiable Instruments Act and 420 (Cheating) and 120-B (Criminal conspiracy) of the Indian Penal Code for alleged dishonour of two cheques.

The NBW issued for his appearance on January 18, 2006 was not received by him at his address.

Complainant Mahadevi, who is no more, had filed a criminal complaint against Mallya and his Bangalore based company McDowell Krest Finance Ltd as the cheques dated April 24, 1997 for Rs 379.75 and March 25, 1998 for Rs 493.68 issued by the company in her favour had bounced.

In the petition Mahadevi claimed that she deposited Rs 23,000 in two fixed deposit receipts (FDRs) in 1997 in McDowell Krest Finance Ltd for a period of one year. After maturity, she had demanded the FDRs amount along with interest. The cheques were towards the interest of the principal amount.

The grievance of the complainant was that the company as well as Mallya failed to make payment in lieu of the dishonoured cheques within time period allowed under the law, the petition filed through Counsel Ajay Bhargava said.

According to the petition, Mallya had resigned from the directorship of the company on March 20, 1997 prior to the alleged offence of dishonour of the cheques in 1998 and he was neither the signatory of the FDRs issued by the company nor the signatory to the impugned cheques, the petition stated.

UNI