NAMBURI VENKATARAMBABU Vs. WATER BASE LTD

JUDGEMENT

(1.) IN these two quash petitions; the petitioners are the persons who have been arrayed as accused No. 3 to 5 in C.C. Nos. 2694 of 2006 and 2649 of 2006, on the file of the If learned XVIII Metropolitan Magistrate, Saidapet, Chennai.

(2.) THE cases allege commission of offence under Sections 138 r/w 141 of the Negotiable Instruments Act. The first accused is the partnership firm, while the second accused is the Managing partner and signatory of the cheques giving rise to the complaints. The petitioners herein are arrayed as accused 3 to 5, on the allegation that they were partners and in-charge of and responsible of day to day transactions and conduct of the business of first accused. The two complaint cases have come to be filed on the presentation of respective cheques in sum of Rs. 6,60,494/- and Rs.5,84,010.70 for payment, on the same being dishonoured, and after following the procedure envisaged under Section 138 of Negotiable Instruments Act.

(3.) THE learned counsel for the petitioners places reliance on the decision reported by the Hon'ble Apex Court in 2005 (5) CTC 65 (S.M.S. Pharmaceuticals Ltd., v. Neeta Bhalla) wherein the Apex Court dealt with the following questions: