VENKATRATNAM NAIDU ADHIKARI Vs. A V BALASUBRAMANYALABIC

JUDGEMENT

(1.) The petitioner in Crl. P. No.7623/2016 who is accused No.2 in C.C. No.24310/2015 and the petitioner in W.P. No.49599/2016 who is accused No.5 in C.C. No.24310/2015 have sought for quashing the proceedings in C.C. No.24310/2015 on the file of XVI Additional Chief Metropolitan Magistrate, Bangalore for the offence punishable under Section 138 of the Negotiable Instruments Act (for short 'N.I. Act').

(2.) The facts leading to these petitions are that, the complainant Sri A.V. Balasubrmanya filed a private complaint in P.C.R No.10181/2015 against accused Nos. 1 to 5 alleging that he had given collateral security in respect of his properties in order to facilitate the Company to borrow the loan as he was also the shareholder in the said Company. As the complainant had given his properties as security to the Bank in respect of the loan borrowed by the Company, the Company had agreed to pay a monthly fees of Rs.2,25,000/- to the complainant for a period of 18 months and if the security is extended beyond 18 months, in such case Rs.2,75,000/- in addition to the annual bonus of Rs.6,00,000/-.

(3.) The petitioner in Criminal Petition No.7623/2016 had executed an agreement in favour of the complainant on behalf the Company as a Director. Thereafter, accused Nos. 1 to 5 failed to perform their part of the contract by not paying monthly fees and bonus to the complainant from October-2013 to February-2015. Accused No.3, Sri M.G. Mohan Kumar being the Director, who is incharge of the day-to-day affairs of the Company, had issued two cheques bearing No. 542241 dated 24.02.2015 for Rs.5,00,000/- and another cheque bearing No. 542242 dated 24.02.2015 for Rs.5,00,000/- drawn on Canara Bank, Cantonment Branch, Bangalore. When the said cheques were presented only one cheque bearing No.542241 for Rs.5,00,000/- was honoured and another cheque bearing No.542242 for Rs.5,00,000/- was dishonoured. Accused No.3 being responsible for all the day-to-day affairs of the Company as on 24.02.2015 has deliberately and intentionally issued cheques even though there was no sufficient fund in the accounts of the Company. After dishonour of one cheque, the complainant issued legal notice, but accused failed to make the payment. Thus, the complainant filed P.C.R. No. 10181/2015 and thereafter it was registered as C.C.No.24310/2015.