LACHHMAN P UDHANI Vs. REDINGTON INDIA LTD

JUDGEMENT

(1.) THE petitioners are the accused 2,3 and 5 in C. C. Nos. 4011, 4012 and 4013 of 2002 pending on the file of the learned IX Metropolitan Magistrate, Saidapet, Chennai, launched as against them and others for the offence under Section 138 of the Negotiable Instruments Act by the respondent-complainant.

(2.) THE respondent-complainant, have alleged that the petitioners and others, who are the directors of M/s. Gallant Computers Pvt Ltd. , placed orders for the purpose of computer peripherals and accessories and towards the outstanding amounts payable for purchase of the said materials. The sixth accused and the fourth accused issued cheques in their capacity as directors of the first accused-company. When the cheques were presented for collection, those cheques were returned with an endorsement "exceeds Arrangement". After issuing statutory notice, the complaints under Section 138 of the Negotiable Instruments Act were filed as against the first accused-company and the Directors thereof including the petitioners herein, as there was no response from them to make payment of the amount under the cheques.

(3.) IT is contended in the petitions filed for quashment of the criminal proceedings that as the second, third and fifth accused, who are the petitioners herein, had resigned from the first accused-company long prior to the issuance of the cheques, no criminal liability can be fastened on them under Section 138 of the Negotiable Instruments Act.