EUROTECH POLYMERS Vs. STATE OF KERALA

JUDGEMENT

(1.) Petitioners are accused in CC No.898/2021, 226/2022 and 227/2022 filed for prosecuting the accused for an offence under Sec. 138 of the Negotiable Instruments Act, 1881 (for short 'N.I. Act-). Allegation was that cheques issued towards payment of cost of materials purchased were dishonoured for the reason, want of sufficient funds. In all cases the complaints have been taken on file after recording the sworn statement of the complainant and process was issued to the accused. On process being served, the accused entered appearance. Particulars of the offences alleged were read over and explained to the respective accused in the prosecutions. They pleaded not guilty. On an oral request made by the complainant before the court below, orders were passed. Copy of the proceedings containing the relevant orders are incorporated alongwith the petitions on hand as Annexure 2. Order dtd. 17/5/2022 is under challenge.

(2.) The impugned orders read :

(3.) The impugned orders were passed by the court below in prosecutions numbered as above, launched by the 2nd respondent herein under Sec. 138 of the Negotiable Instruments Act, 1881 (for short 'N.I. Act-). The allegation in the complaints was that the cheques drawn and issued by the 1st petitioner in favour of the 2nd respondent were dishonoured for want of sufficient funds. According to the 2nd respondent, the petitioner is an establishment dealing with manufacture, marketing, sale and distribution of "Hanbaz water tank cleaner" and an agreement was entered into with the 2nd respondent on 4/4/2019 for the distributionship of the above said product and for the sale, a sum of Rs.10,50,000.00 was received by the 2nd petitioner from the 2nd respondent in two instalments through bank transfer. The case of the 2nd respondent was that most of the delivered units of the water tank cleaner were faulty. The first batch of materials being defective, the 2nd respondent informed the 2nd petitioner about his unwillingness to continue with the business. Thereupon the 2nd petitioner executed and handed over cheques drawn on State Bank of India for different sums towards the costs of materials undelivered. Cheques were presented for collection but, dishonoured for want of sufficient funds. The factum of dishonour of the cheques was intimated to the 2nd petitioner who had agreed to pay back the entire amount after deducting the value of the materials already sold out by the 2nd respondent. Dishonoured cheques were returned to the 2nd petitioner. The matter was settled for an amount of Rs.8,59,325.00 and the petitioner has undertaken to pay it to the 2nd respondent. The complaints were taken on file after recording the sworn statement of the 2nd respondent in each case. Accused entered appearance on receipt of summons and enlarged on bail in each cases. Particulars of the offences alleged were read over and explained to him and he pleaded not guilty.