RAJESH JAIN Vs. DCM SHRIRAM LEASING AND FINANCE

JUDGEMENT

(1.) These are four criminal revision petitions arising out of similar orders passed in four cases u/s 138 of Negotiable Instruments Act (NI Act). Vide the impugned order, the learned Additional Sessions Judge dismissed the application of the petitioners for discharge from the case u/s 138 of Negotiable Instruments Act (NI Act). Petitioners Rajesh Jain and Rajan Bhardwaj are the Chairman and Managing Director of the company known as Vinayak Industries Ltd.. They were under debt of Rajasthan State Industrial Development & Investment Corporation Ltd. (RIICO). Petitioners sought discharge on the ground that vide order 13th February, 1996 u/s 29 of the State Financial Corporation Act RIICO had taken over the possession of the fixed assets of the company and therefore the petitioners ceased to be the persons responsible for the affairs of the company and hence not liable u/s 138 of the Negotiable Instruments Act (NI Act). The order is an under :- "RAJASTHAN STATE INDUSTRIAL DEVELOPMENT & INVESTMENT CORPORATION LTD, UDYOG BHAWAN, TILAK MARG, JAIPUR -5. NO: F&R/R-641/967936 Dt: 13th /15th February, 1996. OFFICE ORDER Shri G.S. Shekhawat, Sr. Regional Manager, Bhiwadi (in his absence Shri Rajiv Gupta, Regional Manager, Bhiwadi) of the Corporation is hereby authorised to takeover the possession of the fixed assets of M/s. Vinayak Industries Ltd. situated at G-282, 283, RIICO Industrial Area, Bhiwadi, Distt. Alwar on 20th February, 1996 and to do all necessary acts and things for that purpose for and on behalf of the Corporation in pursuance of the powers conferred on the Corporation under Section 29 of the State Financial Corporation Act, 1951. Sd. (M.L.BHARGAVA) CHIEF GENERAL MANAGER"

(2.) I will first take up the case of Crl. Rev.602/2000 in which the complainant is M/s DCM Shriram Leasing and Finance Ltd. M/s Vinayak Industries Ltd. approached the complainant for the purpose of taking on lease certain equipments known as shoe lasts required for manufacturing shoes of value of Rs.22,16,250.00. A leasing agreement was entered into between the company and the complainant on 14.3.95 and the complainant financed the accused No.1 M/s Vinayak Industries with Rs.20 lakhs for the same equipment. The repayment was to be made in 36 monthly instalments of Rs.78,577/-, the accused No.2 namely Rajesh Jain, i.e. the petitioner No.1 being duly authorised executed a Demand Promissory Note for a sum of Rs.27,20,000/- which included the interest on the loan. He also executed a personal guarantee for that amount. The accused company paid the first few instalments but subsequently three cheques bearing No. 549480 dated 15.7.96, 549481 dated 15.8.96, 549483 dated 15.10.96 issued towards the monthly instalments falling due on 15.7.96, 15.8.96 and 15.10.96 issued by the accused No.2/petitioner No.1 for and on behalf of the accused No.1 were dishonoured with the remarks "Funds insufficeint" Vide returning memo dated 3.1.97. The complainant M/s DCM Shriram Leasing & Finance company after going through the procedure of issuing notice for payment of the cheques filed a complaint u/s 138 of Negotiable Instruments Act seeking prosecution, compensation and punishment. A notice u/s 251 was framed by the learned MM against accused No.1 Vinayak Industries Ltd., accused No.2 Rajesh Jain Chairman of the Vinayak Industries Ltd. and accused No.3 Rajan Bhardwaj the Managing Director of the company. Before the learned ASJ, who heard the revision. The petitioners took the plea that on account of the order dated 13th February, 1996 u/s 29 of the State Financial Corporation Act 1951 which was passed prior to the dates of the aforesaid three cheques, the petitioners had ceased to be the persons responsible to the company for the conduct of its business and therefore not liable to be tried for the offence u/s 138 of the Negotiable Instruments Act.

(3.) In Criminal Revision Petition No. 259/2004, the petitioner is the same namely Rajesh Jain of M/s Vinayak Industries Ltd. the respondent in this case is Modi Corp. Ltd. who filed the complaint u/s 138 of the Negotiable Instruments Act alleging that the complainant had provided lease of equipment known as PVC Cast Mould(FARMA) against an agreement dated 1st March, 1994 under which the accused namely Vinayak Industries Ltd. and its Directors had to pay 12 quarterly instalments towards the lease money and that in accordance with the sale agreement, the accused issued cheques but the 7th of these cheques and the subsequent ones were dishonoured. The complaint in question related to two cheques dated 30th December 1995 and 30th March 1996. Both of these cheques were dishonoured on the ground of insufficiency of funds. The petitioner being the Chairman of the company took the same pleas as taken in the case of Criminal Revision Petition No. 602/2000 M/s DCM Shriman Leasing Finance Ltd.