Three men, a woman and a company committed fraud when they tried to settle a debt by issuing a cheque which could not be honoured, a court said today.

Joseph and Monica Grima together with Nazzareno and Marygrace Seguna took action in the First Hall of the Civil Court against Pierre Buontempo, Reuben and Romina Buontempo, Centre Travel Company Limited and Guido Grima claiming that in April 1998 the Grimas had loaned the company Lm6,000 and the Segunas Lm14,000.

Mr Grima said that this loan was made following a request by his brother Guido who was the company's book keeper.

The request was made after some advances were made from the company's funds to its director Pierre Buontempo. When the loan was due, Guido Grima claimed that he had been told by Pierre and Reuben Buontempo to refund the amount outstanding by cheque.

However, Pierre Buontempo denied this and said that he used to sign cheques and leave them blank to be filled in by Guido Grima. The cheque was not honoured by the banks due to insufficient funds.

In his judgement, Mr Justice Geoffrey Valenzia said that the company had been the sole beneficiary of the loan and that Pierre Buontempo was its director.

Reuben and Romina Buontempo claimed that they had acted on behalf of the company but they could not hide behind the company's corporate veil.

The court added that when the company issued a cheque to pay back its creditors (which cheque was not honoured) both Pierre and Reuben Buontempo were present.

Guido Grima had also acted incorrectly for he had issued cheques to pay the company's creditors when he was aware that the company had insufficient funds.

The court found Pierre, Reuben and Romina Buontempo and Centre Travel Co Ltd responsible for three-quarters of the sum claimed by plaintiffs. Guido Grima was responsible for the remaining quarter.

The court declared that defendants owed plaintiffs Lm20,000 (46,587.47 euros) and ordered this amount to be paid in proportion to the degree of responsibility.

The court also found that Pierre and Reuben Buontempo, Centre Travel Co Ltd and Guido Grima had acted fraudulently