KAMAL GOYAL Vs. UNITED PHOSPHORUS LTD

JUDGEMENT

(1.) This is a petition under Section 482 of the Code of Criminal Procedure, for quashing criminal complaint filed by the respondent under Section 138 of the Negotiable Instruments Act.

(2.) A perusal of the complaint would show that in the title only a company, Vijay Remedies Limited has been made accused and it was sought to be served through the petitioner as its Director. The case of the complainant was that the accused company, which was engaged in the business of agro-chemicals, issued a cheque No. 028257 dated 15.7.1997 for Rs. 13,72,772.96 to it, against its outstanding dues. The cheque, when presented to the bank of the accused company, was dishonoured for want of funds. The amount of the cheque was not paid to the complainant company despite legal notice of demand dated 21.8.1997. Despite impleading only the company as accused, the prayer made by the complainant was to take cognizance of the offence committed by both the accused, which obviously meant the company M/s. Vijay Remedies Limited and the petitioner Kamal Goyal.

(3.) The case of the petitioner is that he continued to be Director of M/s.Vijay Remedies Limited only till 29th May, 1997 when he resigned. It has also been claimed by him that the accused company had issued a blank cheque to the complainant company under his signature, towards security, with an understanding that the cheque will not be presented for clearance.