Madras High Court has partially allowed the criminal revision case filed by M/s. Mediaone Global Entertainment Ltd. and its director, Dr. J. Murali Manohar, against the conviction and sentence imposed by the lower courts for the offence under Section 138 of the Negotiable Instruments Act.

The Madras High Court has partially allowed the criminal revision case filed by M/s. Mediaone Global Entertainment Ltd. and its director, Dr. J. Murali Manohar, against the conviction and sentence imposed by the lower courts for the offence under Section 138 of the Negotiable Instruments Act.

Key Points:
– The petitioners had borrowed Rs. 10 crores from the respondent, M/s. Ad Bureau Advertising Pvt Ltd, and issued a cheque for Rs. 5 crores, which was dishonoured.
– The lower courts had convicted the petitioners and sentenced the 2nd petitioner to 6 months imprisonment and a compensation of Rs. 7.7 crores.
– The High Court modified the sentence, directing the petitioners to jointly pay a fine of Rs. 2.52 crores (twice the amount due) within 4 weeks, and in default, the 2nd petitioner shall undergo 6 months simple imprisonment.
– The fine amount shall be paid as compensation to the respondent.

Observations:
– The court noted that the respondent’s versions regarding the nature of liability were inconsistent.
– The petitioners had already paid Rs. 8.74 crores, and the remaining amount due was Rs. 1.26 crores.
– The court emphasized the compensatory aspect of the remedy under Section 138 of the NI Act.