T. KANNAN Vs. PIRAMAL DIAGNOSTICS SERVICES PVT. LTD.

JUDGEMENT

(1.) For the sake of convenience, the parties will be referred to as Piramal Diagnostics and Kannan.

(2.) While Crl.O.P. No.9414 of 2016 is filed seeking to call for the records and set aside the order passed in Crl.M.P. No.660/2016 in C.C. No.373/2012 passed by the V Metropolitan Magistrate, Egmore, Chennai, Crl.O.P. No.23056 of 2012 is filed to call for the records relating to C.C. No.373 of 2012 on the file of the V Metropolitan Magistrate Court and quash the same.

(3.) Kannan was the Sole Proprietor of a Diagnotics Centre by name Isotope Diagnostics in Chennai, which, Piramal Diagnostics, wanted to acquire and so, they entered into an agreement of purchase dated 01.06.2007, under which, Kannan agreed to sell Isotope Diagnostics for a total sale consideration of Rs.4.20 crores out of which Rs.2.52 crores was paid by Piramal Diagnostics to Kannan on 01.06.2007 under the said agreement and the balance amount of Rs.1.68 crores is due to Kannan. Contemporaneously, Piramal Diagnostics and Kannan entered into a consultancy agreement dated 01.06.2007 under which Kannan was appointed as Consultant for Piramal Diagnostics on payment of Rs.12 lakhs per annum and other perks. Thereafter, on 06.11.2007, Piramal Diagnostics and Kannan entered into a loan agreement, under which, Kannan was granted a personal loan of Rs.50 lakhs towards which liability, he appears to have given a cheque to Piramal Diagnostics for Rs.50 lakhs which was dishonoured. Therefore, Piramal Diagnostics has launched a prosecution against Kannan for an offence under Section 138 of the Negotiable Instruments Act, 1881, before the VII Metropolitan Magistrate, Dadar, Mumbai, which Kannan is facing.