KAMAL SAGAR Vs. STARWORTH INFRASTRUCTURE

JUDGEMENT

(1.) The petitioner has challenged the prosecution initiated against him in C.C.No.54737/2017 pending trial before the LVII Additional Chief Metropolitan Magistrate, Mayohall, at bengaluru, (henceforth to be referred to as 'trial Court') for the offence punishable under Sec. 138 of Negotiable Instrument Act, 1881 (henceforth referred to be as N.I.Act,) and the order dtd. 19/9/2017 issuance of process against him.

(2.) A private complaint was filed by the respondent herein in PCR No.53798/2017 alleging the commission of an offence punishable under Sec. 138 of N.I.Act. The respondent had arrayed all the directors of the drawer- Company and alleged that all of them were responsible for the business and day to day activities of the Company.

(3.) Respondent further alleged that the Company and its directors had furnished corporate guarantee for a sum of Rs.2,00,00,000.00 on 12/3/2015 and passed on a cheque for sum of Rs.2,00,00,000.00 dtd. 27/7/2016 towards repayment. The said cheque when presented was dishonored due to insufficient funds which prompted the respondent to issue a notice of demand on 5/8/2016, which was served on the petitioner herein, who was purportedly one of the directors of the Company. On the failure of the drawer-Company to re-pay the amount, proceedings to prosecute Company and its directors for the offence punishable under Sec. 138 of N.I.Act was initiated.