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HMT Watches faces trouble against loan default case
 
HMT Watches faces trouble against loan default case
HMT watches faces trouble over HMT Watches -a subsidiary of state owned HMT and the companys top brass, following defaulting on loan repayment of Rs 5.8 crore to Cosmos Co-operative Bank. Cosmos Bank has registered a case against HMT Watches and its top officials for violation of the Negotiable Instruments Act as the cheques submitted by the company as the security had bounced. The Karnataka High Court has rejected a petition filed by Ms Zahed, chairman of HMT as well as HMT Watches,and BL Kaul , managing director of HMT Watches,seeking quashing of proceedings against them. In its ruling earlier this month, the court held that the chairman cannot be excluded from an offence under the Negotiable Instruments Act. The Pune -headquartered bank filed criminal complaints against six persons under Section 138 of the Negotiable Instruments Act. HMT Watches had submitted 88 cheques as security to be encashed on different dates by Cosmos Bank. HMT Watches,the chairman of HMT and HMT Watches ,and the MD of HMT Watches are among the accused in the complaint registered by the Cosmos Bank. Mr Zahed and Mr Kaul contention was that they are not responsible for-day-today affairs at HMT Watches,which is a subsidiary company. The petitioners being whole- time chairman and the group general manager will not come within the nominee of directors as contained in Article 79 of the Articles of Association of the company. Powers of the chairman of the first accused company are found in Article 96 of the Association prima facie makes it clear are responsible for the day to day affairs of the company. Petitioners will be exempted from personal appearance if they file appropriate applications before the court.
Posted On : 10/28/2005 2:00:00 PM

 
 
 
HMT Watches faces trouble against loan default case