Warrant issued against company for not paying up to Konkan Rail

MUMBAI, FEB 26: The Judicial Magistrate First Class, Vashi, Navi Mumbai, has passed an order to issue arrest warrants against the directors of Messrs Punjab Wireless Systems (Punwire) for failing to repay Rs 5 crore with interest to the Konkan Railway Corporation (KRC).

The KRC had invested a sum of Rs 5 crore towards Punwire’s non-convertible debentures (NCDs) in May ’98 with an option of redemption. After the stipulated period, KRC opted for redemption of the NCDs. However, Punwire failed to make the payment of the principal amount and the promised interest. Later, it issued post-dated cheques for the said amount which was dishonoured by the bank.

The case against Punwire and its Board of Directors was heard in the court of Judicial Magistrate first class, Vashi, and summons issued in the names of directors of Punwire to attend the hearing of the case in the first week of February. The directors of Punwire failed to turn up. The court then passed an order to issue arrest warrants against the directors under Section 138 of the Negotiable Instruments Act.