Mumbai: A Mumbai court on Tuesday convicted Pala MLA Mani C Kappan in a cheque dishonour case filed by businessman Dinesh Menon.

Judge SA Khalane found Kappan guilty of an offence punishable under Section 138 of the Negotiable Instruments Act, 1881, and sentenced him to one year of simple imprisonment. The court also directed Kappan to pay ₹1.20 crore as compensation to Menon, along with 9% interest from the date of the order until the amount is fully realised.

If Kappan fails to pay the compensation within one month, he will have to undergo an additional six months of imprisonment.

The court subsequently issued a standing non-bailable warrant (NBW) against Kappan for his arrest through the concerned police station to execute the sentence.

The case arose from a long-standing financial dispute between Kappan and Menon. The financial dealings had also led to a separate criminal case against Kappan in Kerala, where he was accused of cheating and criminal breach of trust.

The complainant, Dinesh Menon, is a native of Palakkad and serves as the Chairman and Managing Director of Menon Aviation & Hospitality Limited. It is alleged that Kappan received ₹3.5 crore in 2012, promising to secure shares in the Kannur International Airport for Menon. When Menon demanded the money back, Kappan reportedly paid ₹25 lakh. The complainant states that legal action was initiated after four cheques, totalling ₹3.25 crore, issued by Kappan in 2013, bounced.

The Kerala High Court had earlier declined to interfere with the framing of charges in the case. However, a special court in Ernakulam acquitted Kappan of the criminal charges in February 2025.

The cheque dishonour case, which was instituted in Mumbai, continued separately and culminated in Tuesday's conviction.

Despite the conviction, Kappan will not lose his MLA status. Under the law, a public representative is disqualified from holding elected office only if convicted and sentenced to imprisonment for two years or more.

However, Kappan maintained that he was innocent and said he would appeal the conviction.
(With Bar and Bench inputs)