E.V. SATYANARAYANA Vs. GUJARAT HEAVY CHEMICALS LIMITED, REPRESENTED BY ITS ACCOUNTS MANAGER, GOPALAKRISHNAN

JUDGEMENT

(1.) THE above three petitions are filed under Section 482 of Code of Criminal Procedure to quash the proceedings, pending on the file of XIV Metropolitan Magistrate, Egmore, Madras. Crl.O.P. Nos. 3040, 3041 and 3042 of 1992 are pertaining to C.C. Nos. 3370, 3371 and 3372 of 1992 respectively. The Respondent herein Gujarat Heavy Chemicals Limited, represented by its Accounts Manager, filed three complaints before the XIV Metropolitan Magistrate, under Section 138 of the Negotiable Instruments Act. It was averred in the complaint filed in C.C. No. 3370/92 as follows:

(2.) THE learned Counsel for the Petitioner, Mr. S. Sampath Kumar at the outset was fair in his contention that as far as the civil liability of the Petitioner to pay the amounts covered by the bounced cheques are concerned in the above three cases, the Petitioner is bound to pay the same. However, as far as the criminal liability of an offence under Section 138 of the Negotiable Instruments Act is concerned, he submitted that no case has been made out and as such, the entire proceedings in the above petitions ought to be quashed by this Court. He also contended that Section 20 of the Negotiable Instruments Act does not apply to cheques as cheques do not require any stamp as per Section 20 of the Negotiable Instruments Act. He referred to Record Note of discussion held on 10th August 1991 at Hyderabad which was included in the type set of papers by the Petitioner/accused which is as follows:

(3.) IN support of his contention, he cited the case reported in A.R. Dower v. Sohanlal Anand and Ors. ( : A.I.R.1937 Lah.816) wherein it was held that Section 20 of the Negotiable Instruments Act does not apply to cheques as the cheques do not require any stamp.