C L MUTHIAH Vs. POWER SOAPS P LTD

JUDGEMENT

(1.) THIS petition seeks to quash the proceedings pending for offences under section 138 read with Section 142 of Negotiable Instruments Act in C. C. No. 516 of 2008 on the file of the Judicial Magistrate No. I, Pondicherry.

(2.) HEARD M/s. V. M. G. Ramakannan, learned counsel for the petitioner and Mr. G. M. Ramasubramanian for Mr. G. R. Hari for Ram and Ram, learned counsel for the respondent.

(3.) PRIMARILY there are two contentions which arise in support of the petition. The first is that the cheques were drawn on 15. 03. 2008 in the name of M/s. Narmada Chemicals (P) Limited and on the date of cheque, such company was not in existence as the company had undergone a change of name to M/s. Power Soaps Private limited with effect form 01. 02. 2008 and was again converted to M/s. Power Soaps limited with effect from 04. 03. 2008, as notified by the Registrar of the Companies. The contentions is that the cheques have been drawn in the name of a non-entity and therefore they were not valid under the Negotiable Instruments enforceable in law. This contention is met by the respondent by placing reliance on the Judgement of the Calcutta High Court reported in CDJ 1985 Cal HC 002. In such case it had been contented that,