AGRO OIL TRADERS Vs. SOUTH INDIA VISCOSE LIMITED

JUDGEMENT

(1.) SOUTH India Viscose Ltd. , presently known as SIV industries Limited (for short "the company") it is said, is a public company incorporated under the Companies Act, 1956, having its registered and corporate office at No. 1977-A, Trichy Road, Singanallur, Coimbatore - 641 005. Agro Oil Traders (for short "firm"), it is said, is a partnership firm, carrying on business at No. 153, Anna Pillai street, Kothawal Bazaar, Madras, of which one Mohammed Ansari is the managing partner.

(2.) THE company sold and supplied to the firm, Golden Harvest super Refined Sun Flower Oil on various dates. Towards the supplies so effected, it is said, there was an outstanding balance of Rs. 9, 26, 212 payable by the firm. In part payment of the abovesaid outstanding, the firm was stated to have issued certain cheques signed by the managing partner in favour of the company. THE company presented cheques for encashment through their bankers - ANZ Grindlays Bank, Madras, on May 19, 1993, and the said cheques were stated to have been returned dishonoured for the reason "funds insufficient". THE company received the dishonour memo dated May 20, 1993, of Canara Bank, A. N. Street, Madras, through their bankers on May 24, 1993. THE company, on receipt of the memo of dishonour, issued through their counsel a notice dated June 1, 1993, under section 138 (b) of the Negotiable Instruments act, 1881 (Act No. 26 of 1881 - for short "the Act"), calling upon the firm to honour its commitments within fifteen days of the receipt of the notice. Individual notices were sent to the firm, as well as to its managing partner. Notice sent to the firm had been served, while the notice sent to the managing partner of the firm returned unserved. Despite service of notice the firm did not comply with the demand. Consequently, the company launched prosecution against the firm and its managing partner, impleading them as accused Nos. 1 and 2 for an alleged offence under section 138 of the Act, which was taken on file as C. C. No. 291 of 1993 on the file of judicial Magistrate no. 5, Coimbatore. On receipt of process, accused Nos. 1 and 2 resorted to the present action under section 482 of the Code of Criminal Procedure, 1973 (Act no. II of 1974 - for short "the Code"), to quash the criminal proceedings so initiated against them. On service of notice, the respondent-complainant entered appearance through a counsel of its choice. Arguments of P. Wilson, learned counsel appearing for the petitioners and C. Manisankar, learned counsel representing the respondent were heard.