K RAGHURAMAN Vs. CHITTIMA

JUDGEMENT

(1.) CRIMINAL Original Petition filed under Section 482 of CRIMINAL Procedure Code praying for a direction as stated therein.

(2.) THE petitioner filed this petition seeking to quash the proceedings relating to C.C.No.7794 of 2003 on the file of V Metropolitan Magistrate, Egmore, Chennai. THE petitioner is the third accused in the complaint. THE first accused is the company, the second and third accused are said to be the Directors of the said company. It is stated in the complaint that on personal assurance and promise made by the second and third accused, the first accused company borrowed a sum of Rs.6,85,500/- and executed two promissory notes for the value of Rs.5,00,000/- and Rs.1,85,000/- in favour of the complainant. But as promised, the accused failed to pay the amount and the outstanding in the accused account as on 12.01.2002 was a sum of Rs.9,12,280/- When the amount was demanded by the complainant by issuing a notice dated 03.01.2003, the accused handed over six post-dated cheques to clear the dues. After having waited for a considerable period, the complainant issued another notice dated 10.02.2003 intimating about the presentation of the cheques to enable the accused to make arrangements for payment of money. On receipt of notice dated 10.02.2003, the accused informed through their accountant that the amounts are already arranged. Hence, the complainant had presented the cheques for collection but it was returned with an endorsement "Funds Insufficient" dated 19.02.2003. THEreafter, the plaintiff had issued statutory notice dated 24.02.2003 and the same was served on the accused on 27.02.2003, since the accused failed to make payment, the complainant filed the complaint.

(3.) IN this case, the petitioner has resigned on 31.01.1995 from the Company and the same was registered with the Registrar of Companies through Form-32 as on 01.02.1995 long prior to the issuance of the cheques (last cheque issued on 10.02.2003). Therefore, the petitioner cannot be fastened with criminal liability under Section 138 of the Negotiable INstruments Act and the criminal prosecution as against the petitioner is liable to be quashed.