ANIL KUMAR SAWHNEY Vs. GULSHAN RAI

JUDGEMENT

(1.) Leave granted.

(2.) Anil Kumar Sawhney filed three complaints before the Chief Judicial Magistrate, Karnal alleging that Gulshan Rai, the accused therein, had committed an offence under Section 138 of the Negotiable Instruments (Amendment) Act, 1988 (for short the Act). The learned Magistrate issued summons in each of the three complaints to Gulshan Rai for his appearance in the said proceedings. Gulshan Rai challenged the orders of the learned Chief Judicial Magistrate before the Punjab and Haryana High court by way of criminal miscellaneous petitions under Section 482, Criminal Procedure Code. Learned Single Judge of the High court quashed the proceedings on the short ground that the cheques in dispute being post-dated cheques, the provisions of Section 138 of the Act were not attracted and, as such, no offence was made out on the admitted facts of the criminal complaints. These appeals by way of special leave petitions are by Anil Kumar Sawhney against the order of the High court.

(3.) The appellant and the respondent were the shareholders of M/s Sai Beverages Private Limited, a private limited company having its registered office at Karnal. The company had two groups of shareholders, one led by the appellant and the other by the respondent. Disputes between the two groups of shareholders led to the filing of a civil suit at Karnal. Ultimately the parties arrived at a settlement which was recorded in a deed of compromise dated 5/03/1990. The appellant agreed to transfer all the shares standing in the names of his group-associates to the respondent-Gulshan Rai for a total consideration of Rs. 10 lakhs. The payment was to be made by way of eight postdated cheques of different amounts. The suit was disposed of in terms of the settlement entered into between the parties. Some of the cheques were encashed on presentation to the bankers. Two cheques dated 15/02/1991 for Rs. 1 lakh each,one cheque dated 15/04/1991 for Rs. 1,50,000. 00 and another cheque dated 15/05/1991 for Rs. 1,50,000. 00 were returned by the banks with the endorsement "not arranged for - no funds". The appellant thereafter issued notices as contemplated under Section 138 of the Act and having failed to receive the payment, filed complaints before the Chief Judicial Magistrate at Karnal.