P.R. VARDANAN Vs. VIDHAYADARAN

JUDGEMENT

(1.) This petition is filed under Section 482 of the Code of Criminal Procedure to quash proceedings in C.C. No. 817 of 2011 of the Judicial First Class Magistrate Court-V, Kozhikode. Petitioners are the accused in the above case which was filed under Section 138 of the Negotiable Instruments Act. The above complaint was filed by the 1st respondent alleging that while he was working as Managing Director of Chakra Motors, Modern Bazar, Nallalam, Kozhikode, there was arrears of Rs. 2,50,000/- towards salary and in discharge of that liability petitioners issued a cheque on behalf of the company. When it was presented for encashment, it was dishonoured for the reason of insufficiency of funds. In the circumstance, 1st respondent filed the above complaint in the Judicial First Class Magistrate-V, Kozhikode. In the circumstance, petitioners, who are the Managing Director of the Company approached this court to quash proceedings in the above complaint.

(2.) The learned counsel appearing for the petitioners contended that 1st respondent was removed from the company due to the mismanagement, thereafter, 1st respondent having access to the office had taken away the cheque leaves, misused the initials and filed the above complaint in order to wreck personal vengeance. Since company is not made as a party in the above complaint, petitioners have no liability in the above transaction. Hence the above complaint is to be quashed by invoking inherent jurisdiction. He relied the following decisions: Aneeta Hada v. Godfather Travels & Tours Pvt. Ltd., 2012 2 KerLT 736, Mahesh Kumar v. Taxi Drivers Co-operative Society Ltd., 2010 4 KerLT 544, Harshendra Kumar v. Rebatilata Koley, 2011 1 KerLT 732.

(3.) The learned counsel appearing for the 1st respondent submitted that the petitioners are the Managing Director and Director of the company and they are liable to pay the amount as per the complaint. Notice was already served on them and there is no violation of Section 138(B). Section 141 of Negotiable Instruments Act deals with the liability of the company. Section 141 reads as follows: