AJAZ ALI KHAN Vs. JAYARAM SON OF KEMPAIAH

JUDGEMENT

(1.) HEARD the learned Counsel for the petitioner.

(2.) THE petitioner was the accused before the court below, whereby the complainant had alleged an offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter referred to as ' the NI Act' for brevity) in the following background: The petitioner is said to be a trustee of an educational trust registered in the name and style of SKM Educational Trust, which consists of a Board of Trustees, numbering 3, including the present petitioner. It transpires that the property belonging to the Trust had been leased to the complainant, who was running a school on the said premises and a Security Deposit in a sum of Rs.5,00,000/- was paid at the time of obtaining such lease. The Security Deposit was sought to be returned by way of cash in a sum of Rs.1,00,000/- and the remaining amount was said to have been covered under a cheque for a sum of Rs.4,00,000/-. This, when presented by the complainant for payment, had been dishonoured. It is in that background that proceedings were initiated against the present petitioner. Though the petitioner had contested the proceedings on several grounds, the same were negated and he was convicted by the trial court, whereby punishment was imposed and a fine of Rs.5,20,000/- was imposed on the petitioner. That having been challenged in appeal, the appellate court has confirmed the finding of the trial court. It is this which is challenged in the present appeal.

(3.) THE learned Counsel for the respondent would not seriously dispute the applicability of the ratio of the judgment cited. In that view of the matter, the petition is summarily allowed on the ground that the prosecution of the signatory of the cheque which has been issued in his capacity as a trustee representing a body, would necessarily require that the body as well as its officers, who were at the helm of affairs of the body, at the relevant point of time, ought to be made parties to the proceeding.