S P VAIRAVAN CHITTIAR AND S P KASI CHETTIAR Vs. SALES SERVICE AND TRANSPORTS (P) LTD , REP BY ITS MANAGING DIRECTOR, K NARAYANA IYENGAR

JUDGEMENT

(1.) This is an application to quash the proceedings in C.C. No. 3974 of 1984 on the file of the XVIII Metropolitan Magistrate, Saidapet, Madras. The accused are the Petitioners herein.

(2.) The Respondent has come forward with this criminal prosecution by means of a private complaint before the XVIII Metropolitan Magistrate, Saidapet, Madras in C.C. No. 3974 of 1984, on the following averments. The Respondent borrowed some money from the Petitioners' firm and offered his bus bearing Registration No. MDO 3093 as collateral security and had executed a document in the nature of a hire purchase agreement. According to the Respondent, collections from this bus and two other buses were directly given to the Petitioners towards the loan. It is the case of the Respondent that the Petitioners' firm failed to give credit to the payments made. On the ground that there was default in the payments of dues, the Respondent's buses were taken away in October, 1973. The Respondent filed a criminal complaint against the persons, who took away the buses which ended in discharge. Thereafter, the Respondent filed a suit O.S. No. 1289 of 1975 on the file of the City Civil Court at Madras for a declaration that the seizure of the buses was illegal, for a mandatory injunction directing the Petitioners to hand over the buses and for rendition of accounts. The Court had disallowed the reliefs of declaration and mandatory injunction, but decreed the suit for rendition of accounts. The Petitioners are, therefore, liable to render a true and proper accounts of all the payments received by them towards the loan and for the income realised from the buses. It is at this stage, the Respondent has come forward with this criminal prosecution for offences under Ss. 406 and 409, I.P.C.

(3.) The pith and substance of the complaint is that the Respondent paid to the Petitioners on 12th March, 1971 a sum of Rs. 8,200 under receipt No 499 and another sum of Rs. 200 on 13th March, 1971 under receipt No. 500 and that the Petitioners failed to give credit to these amounts. They are, therefore, claimed to have committed criminal breach of trust. It is to quash the proceedings, the Petitioners accused have come forward with this petition.