RAJASEKAR Vs. U M S RADIO FACTORY LIMITED

JUDGEMENT

(1.) The petition is filed seeking a direction to call for the records in C.C. No. 750 of 2000 on the file of the learned Judicial Magistrate No. II, Coimbatore and quash the same.

(2.) The petitioner is the Accused No. 5 in a private complaint given by the respondent for the offences 138 of Negotiable Instruments Act. The respondent is a Public Limited Company. One M/S Fidality Industries Limited is also a Public Limited Company (hereinafter referred as debtor company) . The said Company received two inter corporate deposits of Rs. 25,00,000/-each, from the respondent Company on 7.8.1998 and on 24.9.1998. The said deposits were for 90 days, repayable with interest at 22% per annum. The deposits were renewed from time to time. The deposit dated 7.8.1998 was renewed upto 4.11.1999 and became due and payable on 2.2.2000. The deposit dated 24.9.1998 was renewed upto 18.12.1999 and became due and payable on 18.3.2000.

(3.) Two promissory notes were also executed, each for Rs. 26,05,780/-, thereby the said amount become legally enforceable debt. The debtor Company issued two post dated cheques drawn on Allahabad Bank, Chennai. The respondent company presented the cheque to their bankers M/s Tamil Nadu Mercantile Bank, Coimbatore. The cheques returned with an endorsement "insufficient funds", through the Memorandum dated 26.7.2000. Another cheque was also deposited and the same was returned with an endorsement "insufficient funds" through a Memorandum dated 25.7.2000. The respondent company issued legal notice dated 7.8.2000 calling upon the debtor Company and the Directors to make payment of the cheques within fifteen days. Except one Director, other Directors and the Company received the notice. Since the amount was not repaid, the respondent had initiated proceedings under Section 138 read with 141 of NI Act (hereinafter referred as Act) which was taken on file by the learned Judicial Magistrate No. II Coimbatore in CC No. 750 of 2000.