A 62-year-old notary today denied misappropriating over €4,000 in clients' money that should have been used to register a donation of a house but which were allegedly used to settle other dues.

Philip Said, from Siggiewi, pleaded not guilty to the charges when he appeared before Magistrate Carol Peralta.

He stands charged with misappropriation,failing to carry out his duties and with committing a crime he was duty bound to prevent.

Police Inspector Ian Abdilla told the court that he began investigating a report filed by Antoine Bonello against the notary last March 17.

The court heard how Joseph and Innocenza Bonello had gone to Dr Said on December 21, 2013, to draft a contract to cover the donation of a terraced house in Siggiewi to their son, Antoine.

The contract was drafted on December 29 and Antoine Bonello issued a cheque addressed to the Commissioner for Inland Revenue to the tune of €3,262 to cover the capital gains tax. He also issued another cheque of €630 to cover the notary's fees and a separate cheque of €113.52 to cover VAT on notorial fees.

The last two cheques were left blank on Dr Said's instructions, Inspector Abdilla said.

When Mr Bonello saw that he had never received a receipt from the Inland Revenue Department, he went to the department to check about the contract but was told that it had never been registered.

Mr Bonello told the inspector that he had tried contacting the notary but to no avail, leaving him no option but to report the matter to the police.

Inspector Abdilla said that when he arrested Dr Said, after obtaining an arrest warrant, the notary admitted with him that the contract had never been registered due to "an oversight" and that the cheque addressed to the Commissioner for Inland Revenue had been used to cover the tax related to another contract.

Dr Said also told the police that he was financially tight and needed a few weeks to settle his dues with the Bonellos.

The court also heard how the two blank cheques had been cashed by Dr Said's colleague, notary Peter Carbonaro who told the court how Dr Said had asked him to cash the cheques as he was passing through separation proceedings and his wife was keeping an eye on his earnings.

Inspector Abdilla said the police had received other complaints against Dr Said and there are separate criminal proceedings that are still pending.

A representative of the Inland Revenue Department testified that the cheque in question was used as a partial payment for a contract of sale undertaken by a couple by the surname of Tanti.

Inspector Abdilla said according to the information he had, the contract covering the donation of the terraced house has not yet been registered.

The case continues next month.

Lawyer Malcolm Mifsud was defence counsel.