IL SUNG CONSTRUCTION PVT LTD Vs. SIVAKUMAR

JUDGEMENT

(1.) By consent of both sides, the matter has been taken up for final hearing. The petition is filed seeking a direction to call for the records in C.C.No.57 of 2010 on the file of the learned Judicial Magistrate No.II, Poonamallee and quash the same.

(2.) The respondent has initiated prosecution for an offence under Section 138 r/w 141 of the Act (hereinafter referred to as Act ) before the learned Judicial Magistrate No.II, Poonamallee. It is alleged that the first petitioner is a Private Limited Company represented by the 2nd and 3rd petitioners, who are the Directors. It is stated that the defacto-complainant is a proprietor concern doing the business of civil construction works including the interior work and landscaping. The petitioners engaged the defacto-complainant for sub contract works for civil construction in various factory sites. Under these transactions the petitioners are liable to pay a huge sum of Rs. 1,10,99,481/- and they have issued two cheques drawn on Axis Bank Limited for a total sum of Rs. 28,88,260/-. The respondent presented the cheque on 28.1.2009 and the same was returned with an endorsement "payment stopped by the drawer". The respondent issued a statutory notice dated 8.9.2009 demanding payment , but there was no reply. Therefore, the respondent initiated by way of private complaint which was taken on file in C.C.No.57 of 2010.

(3.) Aggrieved by taking cognizance., the petitioners have approached this Court for quashing of the entire proceedings on various grounds. The main ground urged before this court is that there is no legally enforceable debt and the transaction between the parties are purely civil in nature and there is a breach of contract by the defacto-complainant when an work order was entrusted to the defacto-complainant. It is also submitted that when the defacto-complainant has already initiated criminal proceedings for alleged offence under Section 420 IPC, simultaneous proceedings is double jeopardy .