Mumbai Court Awards One-Year Sentence

A Mumbai court on Tuesday sentenced Pala MLA Mani C. Kappan to one year of simple imprisonment in a cheque dishonour case, ordering him to pay ₹1.20 crore in compensation to businessman Dinesh Menon. The Additional Metropolitan Magistrate's Court in Borivali directed that the compensation be paid within one month, with simple interest of 9% from the date of the order until realisation, the court said in its order.

Failure to pay the compensation within the stipulated time will invite an additional three months' imprisonment, the order added. The court also issued a non-bailable warrant against the legislator for execution of the sentence.

The court, in its order, stated: "The accused Mani C. Kappan is hereby convicted for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881, vide Section 255(2) of the Code of Criminal Procedure, 1973. The accused is sentenced to suffer simple imprisonment for a period of one year and he shall pay a compensation of ₹1.20 crore with simple interest of 9% from the date of this order till realisation of the entire amount towards compensation within a period of one month."

The court further directed that the compensation be paid to the complainant, subject to any orders passed by the appellate court.

Background of the Dispute

The case dates back to 1996, when Menon, a Palakkad native and the chairman and managing director of Menen Aviation and Hospitality Ltd, was approached by Kappan — who was introduced to him by a friend and then senior government official, Paul Joseph — with an offer to arrange shares of Kannur International Airport Ltd (KIAL), as reported by The New Indian Express. Menon subsequently paid Kappan ₹3.5 crore in 2012 through his son, according to the same report, but the shares were not provided. When Menon demanded the money back, Kappan initially agreed and returned ₹25 lakh.

Following a dispute, Menon approached the CBI, and in 2013, Kappan gave him four cheques totalling ₹3.25 crore. When the cheques bounced, Menon approached the Borivali Metropolitan Magistrate Court, according to the report.

The case also involved a separate criminal case in Kerala, where Kappan was accused of cheating and criminal breach of trust, according to a report by Malayala Manorama. However, the same report noted that a special court in Ernakulam acquitted Kappan of those charges in February 2025. The cheque dishonour case in Mumbai continued separately.

Political Implications and Response

Despite the conviction, Kappan will not be disqualified as a legislator. Under Indian law, a public representative is ineligible to hold office only if convicted and sentenced to imprisonment for two years or more, as per the report on Malayala Manorama. The verdict also comes at a time when the United Democratic Front (UDF) has been considering Kappan for key positions, including cabinet posts, The New Indian Express noted, although the conviction does not trigger disqualification.

Kappan, a UDF legislator, told reporters, according to the same source: "The verdict was given without hearing my side. The case was listed today for arguments and the verdict was announced in my absence." He alleged a conspiracy and said he would appeal the verdict.

Sources close to the legislator said he would appeal against the verdict, as reported by The Hindu. Kappan also alleged that the case was aimed at preventing him from assuming a ministerial position he claimed had been promised to him.