A court has ordered the former head of Sogo Co to pay 6.02bn yen ($54.2m) in damages to the company.

The Tokyo District Court ruled that Hiroo Mizushima, former chairman of Sogo, and other managers had failed in their duties, resulting in losses to the retailer. The charges involve illegal transactions with an affiliated water equipment manufacturer, loans to a company in Turkey and illegal dividend payments.

This is the first time the court has ordered payment of damages under the new corporate rehabilitation law.

The new management of the department store group sued Mr Mizushima and 18 other executives to recoup a 11.25bn yen ($101m) loss - 2.69bn yen ($24.3m) from what management says was a fake deal involving a company related to Sogo, 6.76bn yen ($61m) from a failed department-store project in Turkey and 1.8bn yen ($16.3m) through allegedly illegal dividend payments.

The court found 16 other executives liable but ordered Mr Mizushima to pay the whole 6.02bn yen ($54.4m), saying it was his responsibility as chief executive to stop the losses. Two executives were acquitted.

The collapse of Sogo, which had been known to be in financial difficulty for some years, exposed years of lax corporate governance. Mr Mizushima, who has been criticised for running the department store group as a personal empire, is also being sued by the Industrial Bank of Japan, Sogo's main bank, which is seeking payment of 11bn yen ($99.3m)in loans to the group which he personally guaranteed.

In recent years a growing number of Japanese executives have been forced to personally compensate companies for losses connected to scandals. In September the Osaka District Court ordered a former Daiwa Bank executive to pay the bank $530m in connection with trading losses incurred by a subordinate in New York. That verdict is being appealed.