M CHOCKALINGAM Vs. SUNDARAM FINANCE SERVICE LIMITED

JUDGEMENT

(1.) The petitioner, who is the 4th accused in C.C. No. 2929/98 on the file of the XIII Metropolitan Magistrate, Egmore, Madras, has filed this petition u/S. 482, Cr. P.C. to quash the said proceedings.

(2.) The respondent M/s. Sundaram Finance Service Ltd. Chennai 14, represented by its Executive S. Suresh, has filed a complaint u/S. 138, Negotiable Instruments Act alleging that in the usual course of the complainant's business, the 1st accused availed bill discounting facility from the complainant for a sum of Rs. 22,50,000 as per bill discounting agreement dt. 19-3-1993 against invoices dated 3-2-97 and 4-2-97. The accused towards the said loan, issued a cheque bearing No. 243249 dt. 27-12-97 for Rs. 22,50,000 drawn on Indian Bank, Alwarpet Branch, Chennai 18. The cheque was presented for payment by the complainant on 27-12-97 in State Bank of Travancore, Mount Road, Chennai 2, and the same was returned on 30-12-1997 with an endorsement "funds insufficient". The petitioner has issued notice to all the accused persons. Even after the receipt of the notice, the amount was not paid. Therefore, the respondent herein has filed the complaint against the accused 1 to 7.

(3.) The petitioner who as the 4th accused in the said complaint, on receipt of the notice from the complainant, had sent a reply dated 23-1-98 contending that he ceased to be a Director of the 1st accused/company for the last 10 years, however, the respondent has contended that the name of the 4th accused was found in the 37th Annual Report of the 1st accused/company, which shows that he was a director up to 31-3-1996. The petitioner has contended that hehad informed that he had ceased to be a Director of the 1st accused/company and never participated in the business of the company for the last 10 years and not attended the board meeting held by the company. The petitioner has also sent form No. 32, showing that he has ceased to be a Director of the company, to the Registrar of Companies, Coimbatore.