KURUVILLA Vs. SATHI RAJAN

JUDGEMENT

(1.) This petition is filed under section 482 of Cr.P.C. to quash the complaint and order passed there on by the learned Magistrate in S.T. No: 624/2004 of C.J.M. Court, Kottayam. That complaint was filed against the petitioner alleging commission of offence punishable under section 138 of Negotiable Instruments Act. The learned Magistrate after recording the sworn statement and perusing the records issued process to the accused. Petitioner contends that the cheque was issued by him to one Chithrabhanu and it was crossed by him noting "A/C Payee only". According to the petitioner, the said cheque was never intended to be negotiated. Annexure A3 is the copy of that cheque. The accused contends that contrary to the directions, the cheque was handed over by Chithrabhanu to the complainant. On coming to know of the fact, he issued notice to the drawee bank not to honour the cheque. It was also contended that there was sufficient funds in the account of the petitioner to honour the cheque.

(2.) The important question raised by the petitioner is that when two parallel transverse lines are put across a cheque and when it is noted 'A/C Payee only', is that cheque negotiable and whether such a payee gets authority to indorse so as to entitle the indorsee to prosecute the drawer of the cheque for offence under section 138 of N.I. Act. Since the question involved is found to be of general importance, Sri. Bechu Kurian was appointed by this Court as Amicus Curiae. Sri. Bechu Kurian and the learned counsel appearing for both sides addressed their arguments at length.

(3.) To understand the various terms which are relevant for consideration it is better that those relevant provisions are extracted here.