STEEL AUTHORITY OF INDIA LTD Vs. STATE

JUDGEMENT

(1.) This appeal by the Steel Authority of India Limited ("SAIL") is against the impugned judgment dated 6th August 2008 passed by the learned Metropolitan Magistrate ("MM") in Complaint Case No. 199 of 2003 acquitting the Respondent No. 2 of the offence under Section 138 of the Negotiable Instruments Act, 1881 ("NI Act").

(2.) In its complaint before the learned MM, SAIL stated that M/s. Capital Industries, Respondent No.3 partnership firm, of which Mr. Dinesh Vij, (Respondent No.2 herein) and Mr. Prakash Vij, (arraigned as Accused No.2 "A-2" in the complaint) were partners, had been supplied 14.89 metric tons of steel material under a delivery order dated 24th June 1997. According to SAIL, the above delivery was acknowledged by the Respondents against challan and invoice both dated 25th June 1997. It was further stated that in discharge of the liability for the goods received, the Respondents had issued a cheque No. 150180 dated 8th August 1997 for a sum of Rs.5,54,696. It was acknowledged that the said cheque was signed on behalf of the firm by Mr.Prakash Vij (A-2).

(3.) The cheque when presented for payment was returned dishonoured with the remarks "Account Closed". SAIL stated that a legal demand notice dated 23rd August 1997 was issued to the Respondents through registered post and was duly served upon all of them. When no payment was forthcoming, the complaint was filed.