DALBIR SINGH Vs. INDUSIND BANK LTD

JUDGEMENT

(1.) THE petitioners herein, who are A-2 and A-6 in the case taken as C. C. No. 8457 of 2002 on file by the XIV Metropolitan Magistrate, Egmore, Chennai, for an offence punishable under Section 138 of the Negotiable Instruments Act, seek to quash the said proceedings.

(2.) AT the outset, it is represented by both the parties that the first petitioner herein has been given up as accused in the case before the learned magistrate and an endorsement also made to that effect by the complainant. Therefore, this Court has to decide the case only in respect of the 2nd petitioner/a6 treating him as the sole petitioner in this Criminal Original petition.

(3.) THE averments and allegations projected in the complaint before the trial court are, in brief, as follows:-The complainant viz. , Indusind Bank Ltd. , Nungambakkam, Chennai, received a set of Bills from the beneficiary drawn under Letter of Credit No. 25/7, dated 24. 01. 2002, issued by A1/r2 herein favouring M/s. Maharaja Timber Traders, No. 168 sydenhams Road, Park Town, Chennai-600003. As per usual and accepted banking practice, prior to negotiation, the complainant presented the original documents drawn under the aforesaid letter of credit to A1 and obtained a categorical confirmation to the effect that the Bills were in order and requested A1 to specify the date on which payment would be made to the complainant. Apart from that, an Executive of the complainant-Bank had personally visited A1 on 25. 01. 2002, pursuant to which, on the same day, a letter was issued by A1 whereby it was confirmed that the documents submitted by the complainant under the Letter of Credit, issued by A1, were in order and therefore, payment could be made in respect of the said Bill on the due date ie. , 25. 04. 2002. Subsequent to the categorical written confirmation and declaration dated 25. 01. 2002, the complainant had discounted the bills drawn under the letter of credit. While so, on 25. 04. 2002, A1 had honoured the commitment by issuing a Bankers cheque from its Royapettah Branch bearing No. 013635 dated 25. 04. 2002 in favour of the complainant duly signed by the 4th and 5th accused for Rs. 56,27,862. According to the complainant, when the said cheque was forwarded for clearance, the cheque was returned unpaid by the accused Bank on 26. 04. 2002 with an endorsement 'payment stopped'. The first accused, having issued the Banker's Cheque; the 3rd accused, having issued the Letter of Credit; A4 and A5 having signed the cheque and A2and A6 being the Controlling Authorities of A1 and involved in the affairs of the first accused, are jointly and severally liable for dishonour of the banker's cheque in question; thus, they have committed offences punishable under sections 138 (b), 141 and 142 of the Negotiable Instruments Act (NI Act ).