PADMA VATHY Vs. STATE NCT OF DELHI

JUDGEMENT

(1.) Aggrieved by the order dated 9th July, 2016 passed by the learned Metropolitan Magistrate, Dwarka Courts summoning the petitioners for the offence punishable under Section 138 Negotiable Instruments Act (in short the NI Act), the petitioners prefer the present petition seeking quashing of the said order as well as Complaint Case No. 5002432/2016 titled as 'Religare Finvest Limited v. Strategic Credit Capital Private Limited & Others'.

(2.) Before adverting to the legal issues it would be appropriate to give a brief background of the case. The Religare Finvest Limited (in short 'Religare') entered into an Assignment Agreement dated 25th July, 2015 with the petitioner No.2/ Strategic Credit Capital Private Limited (in short 'the Strategic') through its Director Padma Vathy/petitioner No.1, for assignment of the loans and receivables along with all rights, title and interest therein for a total consideration of Rs. 530,02,40,678/- (Rupees five hundred and thirty crore two lakh forty thousand six hundred and seventy eight only). The Assignment Agreement obligated Strategic to issue a Standby Letter of Credit (in short 'the SBLC') for a sum of Rs. 540 crores in favour of Religare, to guarantee the balance purchase consideration. Religare received an initial purchase consideration of Rs. 10 crores from Strategic on June 24, 2015 and the balance purchase consideration was required to be given within a period of 90 days from the initial purchase consideration. However, Strategic failed to pay the balance purchase consideration under the Assignment Agreement. So around 22nd October, 2015 Religare informed Strategic that it would invoke the SBLC on account of default in payment of the balance purchase consideration. On the representation of Strategic, SBLC was not invoked and time was agreed to be extended subject to payment of Rs. 60 crores out of the balance purchase consideration and a Supplemental Agreement was entered in this regard on 30th December, 2015. The SBLC was extended till June 22, 2016. Pursuant to the Assignment Agreement and Supplemental Agreement, Religare transferred the loans, receivables and securities in favour of Strategic as per its demand, however Strategic even failed to pay Rs. 60 crores as promised. Later to meet the payment obligations, Strategic handed-over a cheque dated 21st March, 2016 bearing No. 709845 drawn on HDFC Bank for a sum of Rs. 180 crores only (in short the cheque in question) in favour of Religare and assured that the balance payment would be made before the agreed date.

(3.) It is the case of Religare that in order to avoid the payment, Strategic sent an e-mail communication dated 9th June, 2016 to the Religare purporting to terminate the Assignment Agreement and Supplemental Agreement which was duly replied by Religare on 10th June, 2016. When the cheque in question was presented by Religare, the same was returned unpaid by the bankers of Strategic for the reasons 'Refer to Drawer' on the same date i.e. 15th June, 2016. Hence a notice dated 19th June, 2016 was issued to Strategic and other accused asking them to pay within 15 days of receipt of notice failing which Religare will institute legal proceedings including under Section 138 read with section 141 of the NI Act.