VENKATESA PAPER AND BOARDS LTD Vs. RAMESH

JUDGEMENT

(1.) BY consent of both sides, the matter is taken up for final hearing. The petitions are filed seeking a direction to call for the records in C.C.No.424 of 2006 on the file of the learned Judicial Magistrate No.I, Udumalpet and quash the same.

(2.) THE petitioners are A.1 to A.4 in the complaint given by the respondent under Sec.138 of the Negotiable Instruments Act (hereinafter called to as "Act"). In the complaint, it was alleged that the accused Company was engaged in manufacturing papers and its allied products and A.2 to A.4 are in-charge of the day today affairs of the business of the company. A.3 was the Managing Director and on 6.4.2005, A.3 borrowed a sum of Rs.3,00,000/- for business purpose and he issued a cheque payable on State Bank of India on 11.8.2006 and when the same was presented by the complaint with his banker Tamil Nadu Mercantile Bank, it was returned with an endorsement "account closed". It is further alleged that the complainant issued statutory notice demanding repayment and A.1 and A.4 received notice and A.2 and A.3 purposely evaded receipt of notice and on failure of repayment, the criminal prosecution has been launched.

(3.) ON the contrary, Mr. V.T. Narendhiram, learned counsel for the respondent would submit that specific and clear averments are made by the part played by the Directors of the Company and therefore, the proceedings need not be quashed.