NABHIRAJ Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) Heard learned counsel for petitioner and learned counsel for respondent.

(2.) The respondent State Bank of India filed a complaint under section 200 Cr.P.C., seeking action under section 138 of the Negotiable Instruments Act, 1881 ( N.I. Act for short) for dishonour of the cheque issued by the petitioner herein for a sum of Rs.2,50,00,000/- (Rupees Two Crores Fifty Lakhs) drawn on Karnataka Bank Limited, Kadri Road, Pumpwell, Mangalore. According to the complainant, AZTEC Digitals Pvt. Ltd., borrowed a loan from State Bank of India, SME Branch. Towards the discharge of portion of the loan amount, as Director, the petitioner herein/accused issued the aforesaid cheque. The said cheque when presented for collection through Cheque Truncation System, the same was dishonoured on the ground of insufficient fund. Learned Magistrate took cognizance of the above offence and issued summons to the petitioner.

(3.) Petitioner has approached this court seeking quashment of the proceedings on the ground that averments made in the complaint are bald and vague. The loan facility was availed by the Company and not by the petitioner/ accused. The complainant has no locus standi to file the complaint inasmuch as the cheque in question was issued by the petitioner/accused in favour of the Company. The Company was the holder in due course of the said cheque and therefore, the complainant had no right over the cheque in question. There was no transaction between the petitioner/accused and the respondent/complainant and hence, there was no liability in respect of which the cheque could have been issued by the petitioner. In the absence of any indorsement by the Company, the complainant did not answer the description of payee or holder in due course of this cheque. As such, the complainant did not have any right to demand payment of the aforesaid cheque in view of provisions of section 138(b) of the N.I. Act.