NIKHIL P. GANDHI Vs. HOUSING AND URBAN DEVELOPMENT

JUDGEMENT

(1.) Mr.S.I.Nanavati, the learned senior counsel appearing for the applicants, invited my attention to a letter dated 21st August 2014 addressed by the respondent no.1 - original complainant to the Pipava Defence and Offshore Engineering Co. Ltd.. The letter reads as under : "SUB : Dishonour of Cheque No.993530 dated 30.5.2014 for Rs.10,54,00,000/- drawn on HDFC Bank, Mumbai. Dear Sir(s), With reference to the above, we have to advise that the following Cheque given by you to HUDCO in discharge of your liability in part towards sanctioned loan of Rs.271.00 crores under Scheme No.18628 for Project known as HUDCO Finance Take Out & Project Finance of Pipavav Shipyard Project at Rajula Taluka, Dist. Amreli, Gujarat is dishonoured with the following remarks :- Sl. Cheque No. Dated Amount Drawn on Reasons for No. return of cheque 1 993530 30.5.2014 10,54,00,000 HDFC Bank, Payment Mumbai stopped by drawer A copy of the return memo and cheque is enclosed for your reference. You being the Chairman Managing Director/Directors of M/s.Pipavav Defence and Offshore Engineering Company Limited are in charge of and responsible to conduct of the business of the said Company and as the said cheque was issued and payment stopped with your knowledge and connivance, you are also liable for punishment for the stop payment of the said cheque along with the Company. As the said cheque has drawn and issued by you to HUDCO towards the part discharge of above said loan amount, the payment stopped and non-payment of amount within 15 days after receipt of this notice is amounting to offence punishable under Section 138 of NI Act. This legal notice is required and caused to be issued for the reasons for which you are wholly and solely liable and therefore, you are also liable for legal expenses thereon. In view of the above, you are hereby call upon to make payment of the aforesaid amount of Rs.10.54,00,000/- within 15 days from the date of receipt of this notice, failing which we shall be constrained to initiate criminal prosecution against you all in terms of Section 138 of Negotiable Instrument Act, 1881. Yours faithfully, Sd/- (RANBIR SINGH) DY.GENERAL MANAGER (LAW)" Thereafter, Mr.Nanavati, the learned senior counsel invited my attention to the averments made in para-6 of this petition. Para 6 reads as under :