GEORGE JOSEPH Vs. HMT (INTERNATIONAL) LIMITED

JUDGEMENT

(1.) The petition is admitted and considered for final disposal.

(2.) The present petition is filed by the accused before the trial court. It transpires that M/s. HMT (International) Limited, a public limited company, incorporated under the Companies Act, 1956, had filed a complaint as on 30.12.1996, against one M/s. Nucor Wires Limited, Bangalore and its 7 directors, alleging that they had committed an offence punishable under Section 138 of the Negotiable Instruments Act, 1881, (Hereinafter referred to as the 'NI Act', for brevity) on the dishonour of a cheque for a sum of Rs. 35 lakh, dated 31.10.1996.

(3.) The respondent having issued a notice of demand in terms of Section 138 of the NI Act, the petitioners are said to have replied contending that the cheque in question had only been issued as security and was not in discharge of any ascertained liability. A complaint was thus filed by the respondent, represented by its General Manager, one M.S. Zahed, who was said to have been duly authorized by the Chairman of the Board of Directors of the respondent company. However, the said General Manager was said to have been substituted by one M.R. Jayaram, who was said to have been duly authorized to represent the respondent company under a Power of Attorney, executed in his favour by the Chairman.