NARPAT MOTISINGH PUROHIT Vs. STATE OF GUJARAT

JUDGEMENT

(1.) The petitioner before this Court under Sec. 482 of the Code of Criminal Procedure, 1973 (for short "the Cr.P.C.") has prayed for quashing and setting aside the Criminal Case No.7214/2019, wherein he has been made an accused in proceedings under Sec. 138 of the Negotiable Instruments Act, 1881 (hereinafter referred to as the 'N.I. Act' for short) before the learned Judicial Magistrate, First Class, Vadodara. The petitioner challenges the issuance of summons dtd. 22/2/2019 and all the consequential proceedings initiated in pursuance thereof, contending that the same are illegal, untenable unsustainable, malafide and not maintainable in the eyes of law.

(2.) The petitioner states that he had purchased the vehicle being Maruti Swift bearing Registration No.GJ-06- FK-4360, availing the financial assistance from respondent no.2 - Shriram Transport Finance Company Ltd. by Hire Purchase Agreement in the year 2013. The value of the car was Rs.6,29,263.00, out of which the financial assistance availed by the petitioner was Rs.4,90,000.00, which the petitioner was to pay to respondent no.2 in 48 equal monthly installments along with interest of Rs.2,45,082.00. The petitioner states that seven cheques in the form of security were issued while entering into the Hire Purchase Agreement in the year 2013. It is stated that it was specifically agreed upon that,the cheques would be treated as security.

(3.) Mr. Harsh V.Gajjar, learned advocate for the petitioner submits that since the vehicle, which was under the Hire Purchase Agreement, was seized on 28/12/2018, the agreement ipso facto stands terminated and therefore there would not be any legally enforceable debt for respondent no.2 to present any cheque before the Bank given by way of security. Mr. Gajjar, therefore, submitted that any criminal proceeding for dishonour of Cheque No.477285 would not be towards any legally enforceable debt prior to the complaint dtd. 22/2/2019. The possession of the vehicle was taken away from the petitioner and the said vehicle was sold to Kirtiji Ranchhodji Solanki and the sale proceeds were adjusted towards the outstanding debt.