Sail Moves Against Jindal Inds On Cheque Dishonour

Steel Authority of India Ltd (SAIL) has lodged an FIR (First information report) with Faridabad police against Jindal Industries for dishonour of a cheque for Rs 3.42 crore issued against delivery of materials.

SAIL sources said, as Jindal Industries Ltd have business relationship with SAIL and are one of its regular customer, in the course of commercial dealings they requested for providing unsecured credit facility and such facility was allowed to them. The cheque issued by them on Punjab National Bank was dishonoured because the signatories were authorised to issue cheque up to Rs 1 crore only.

The materials were supplied to Jindal Industries directly from Bokaro Steel Plant (BSL) of SAIL.

They also received materials, without any complaint. Jindal Industries have several authorised signatories. Banks have honoured earlier cheques worth more than Rs one crore, issued by them.

This time the cheques were dishonoured. SAIL authorities feel that it is a deliberate case of cheating and hence SAIL is taking legal action for cheating.

In the past, cheques for Rs 13.30 crore issued by Steel Tubes of India Ltd were dishonoured in Indore (on March 27, 2000). SAIL subsequently issued notice to RB Baheti, executive chairman, Steel Tubes of India Ltd, KN Garg, managing director, NP Jain, director, and others for payment of Rs 13.30 crore and interest thereon. As no payment was received, eight complaints were filed in the court of chief judicial magistrate (CJM) at Indore against all of them.

Pursuant to summons issued by CJM, Indore, Baheti and Jain appeared in the court and were released on bail. SAIL also filed a petition for the winding up of Steel Tubes of India Ltd in Madhya Pradesh High Court at Indore.

The next date of hearing has been fixed for November 3 in the complaint cases under section 138 of N I Act and for November 6 for hearing of the petition for winding up. In the absence of any proposal from Steel Tubes of India for payment to liquidate their dues, SAIL will press for the winding up order from the court.