KIRANVITTAL POOJARY Vs. FLYJAC LOGISTICS (P) LTD.

JUDGEMENT

(1.) The petition is to quash the proceedings in C.C.No.6945 of 2018 on the file of the Fast Track Court No.V, Saidapet, Magistrate Level, Chennai for the alleged offence under Sec. 138 of Negotiable Instruments Act, 1881.

(2.) It is alleged in the complaint that the first accused had issued two cheques for Rs.1,34,570.00 (Rupees One Lakh Thirty Four Thousand Five Hundred and Seventy only) and Rs.1,61,840.00 (Rupees One Lakh Sixty One Thousand Eight Hundred and Forty only) in the discharge of their liability towards the respondent; that the said cheques were presented for collection and were dishonoured for the reason "Funds Insufficient"; and that inspite of the statutory notice, the accused did not make the payment. Hence the complaint. The petitioner is arrayed as A2 in the complaint and is alleged to be a Director of the first accused company.

(3.) The learned counsel for the petitioner/second accused would submit that the petitioner is a Director, nominated by SIDBI Venture Capital Ltd (SVCL), pursuant to a subscription cum Shareholders Agreement dtd. 16/5/2014 entered into between the first accused company and SIDBI Venture Capital Limited. The learned counsel would further submit that SIDBI Venture Capital Limited is a wholly owned subsidiary of SIDBI (Small Industries Development Bank of India) which is controlled by the Central Government. Hence the petitioner cannot be prosecuted in view of the second proviso to Sec. 141 (1) of the Negotiable Instruments Act, 1881.