N.K. RAMASWAMY IYENGAR AND ANOTHER Vs. BANGALORE DISTRICT AND BANGALORE RURAL DISTRICT CO-OPERATIVE CENTRAL BANK LIMITED

JUDGEMENT

(1.) THIS petition is filed under Section 482 of the Cr. P.C. for quashing the proceedings in PCR No. 1111 of 1999 (C.C. No. 30083 of 2000) on the file of the XIII Additional Chief Metropolitan Magistrate, Bangalore.

(2.) THE brief facts for consideration are as follows. - -A cheque for a sum of Rs. 20 lakhs issued by Vyalikaval House Building Co -operative Society Limited, Bangalore, bearing signatures of the petitioners issued to the respondent -Bangalore District and Bangalore Rural District Co -operative Central Bank Limited, Bangalore, came to be dishonoured with an endorsement - insufficient funds. As such, the payee of the cheque (respondent), after complying with the requirements of issue of notice for settlement, lodged a complaint under Section 200 of the Cr. P.C. against the petitioners seeking prosecution for an offence punishable under Section 138 of the Negotiable Instruments Act. The learned Magistrate after taking the cognizance, recorded the sworn statement of one Sri V. Thyagaraja, Manager of the payee -Bank and by the order dated 22 -1 -2000, issued process against the petitioners.

(3.) THE main contention of the learned Counsel for the petitioners is that the payee of the dishonoured cheque is an incorporeal person. It is contended that under Section 142 of the Negotiable Instruments Act, the Court can take cognizance of the offence punishable under the Act, only upon the receipt of a complaint by the payee of the cheque or the holder in due course. It is contended that from the averments made in the complaint, the payee -Bank had authorised its Managing Director to present the complaint. But the complaint is signed and presented by one V. Thyagaraja, stated to be the Manager of the payee -Bank. It is contended that since the Manager is an unauthorised person as per the averments in the complaint itself, presentation of such complaint, taking cognizance of the same and ordering the registration of a case and issuing process, are all illegal and unsustainable in law.