Shailendra Singh, former managing director at Percept, has moved the Metropolitan Magistrate Court against his brother for allegedly not honouring a Rs 11.10-crore cheque.
Shailendra Singh had stepped down as MD of Percept in March 2017, 33 years after the brothers founded the entertainment, media and communications company in 1984. He still owns over 40% stake in the firm.
As part of the settlement, the holding companies and joint properties were to be divided between the brothers and Shailendra Singh’s unpaid dues for the services that he rendered to the Percept Group of Companies was to be repaid. The disputed amount was part of the original settlement.
While Shailendra Singh declined to comment, Harindra Singh said there is a dispute between them on the Family Settlement Agreement. “Hence this amount isn't payable,” he claimed.
ET has reviewed a copy of the summons.
Priyanka Sinha, cofounder of law firm A&P Partners, said disposal of cheque dishonour cases takes about half a decade. “However, the amendment of the Negotiable Instrument Act has brought a positive change under Section 143 (A) by which the courts can allow an interim compensation to the complainant during the pendency of the matter,” she said.
Under Section 138 and 141 of Negotiable Instruments Act, 1888, when a cheque is dishonoured for insufficiency of funds or for any of the prescribed reasons, the one who is a defaulter can be punished with imprisonment for a term which may extend to two years, or with a fine which may extend to twice the amount of the cheque, or both.
Harindra Singh took full control of Percept four years ago after the brothers executed a family settlement. The group, popular for its electronic dance music (EDM) festival Sunburn, had then said Shailendra Singh would continue as a passive shareholder but will not be involved in its management.
However, three years ago, Shailendra Singh dragged his estranged brother to the National Company Law Tribunal and sought insolvency of the Mumbai-based media and entertainment group that he cofounded to clear his dues.
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