S.C.P.DHANAPAL Vs. A.AROKIASAMI

JUDGEMENT

(1.) This petition has been filed to quash the private complaint filed in C.C.No.363 of 2020 pending before the Fast Track Judicial Maigstrate No.I, Coimbatore for the offences under Sec. 138 and 142 of the Negotiable Instruments Act.

(2.) The brief facts leading to the filing of this complaint under Sec. 138 of the Negotiable Instruments Act is as follows : The complainant has supplied UPVC frames for windows to M/s.Evocon Pvt. Ltd. The amount outstanding due to supply of the material is Rs.7,92,875.00. Due to the outstanding amount, the accused had requested the complainant to buy a flat in Silicon Shelter for himself for the materials supplied. The complainant agreed to buy the flat and paid a sum of Rs.34,62,767.00 and in total a sum of Rs.42,55,642.00 was paid to the Evocon account for the flat No.4A6 in Silicon Shelter. The total value of the flat is Rs.47,95,125.00. A Memorandum of Understanding was also entered between the parties in this regard. The balance amount payable is only Rs.3,12,776.00. When the matter stood thus, the home buyers have filed a petition before the NCLT. Subsequently, the complainant had given a police complaint against the accused. After that, the accused agreed to pay the amount and requested to grant some more time to execute the earlier agreement. He has also issued four post dated cheques and in the event the flat is not registered within 120 days, the cheques can be encashed. As the accused had failed to register the agreement, on the instructions of the accused, when the cheques bearing Nos.646933 and 6469334 were presented on 6/6/2020, the same were returned unpaid for the reason of 'insufficent funds'. After issuing statutory notice, the present complaint has been filed. The same has been sought to be quashed by the petitioner.

(3.) Admitting the sale of the flat, it is contended by the petitioner before this Court that due to considerable delay in completion of the projects undertaken by the company, the home buyers of Eden Garden, filed a petition before NCLT under the Insolvency and Bankruptcy Code for resolution and the Company was admitted for a Corporate Insolvency Resolution Process on 29/5/2019. In the above proceedings, the complainant has also made a claim of Rs.50,78,412.00. The Resolution Plan submitted by the Resolution applicant included the Complainant's claim and the same was passed with requisite majority by the Committee of Creditors on 13/2/2020, wherein the complainant also participated with a vote in favour of the Resolution plan and the resolution plan was also accepted. Therefore, all the claims of the Operational Creditors has been extinguished. Hence, prosecution under Sec. 138 of the Negotiable Instruments Act is not maintainable.