C T THANGARAJ Vs. MURUGESAN

JUDGEMENT

(1.) Thangaraj, the accused, the petitioner herein has filed this petition under Section 482 Cr. P.C. seeking to call for the records in C. C. No. 244/98 on the file of Judicial Magistrate, Walajapet, Vellore District and quash the proceedings.

(2.) Mr. Jothi, the learned counsel for the petitioner, would at length argue by citing several judgments that the proceedings initiated against the petitioner under Section 138 of the Negotiable Instruments Act have to be quashed mainly on the ground that the petitioner filed insolvency petition in I. P. No. 7 of 1998 on the file of Subordinate Judge, Ranipet, Vellore District, in which notice to the creditors including the complainant, the respondent herein, was issued and that therefore, once the petition for insolvency is filed under the Provincial Insolvency Act and once the enforceability of the debt has been covered for the relief in the Insolvency Proceedings with a prayer for adjudication in the Insolvency Proceedings, the complainant, the respondent herein cannot have any independent cause of action outside the scope of Insolvency Act, so as to seek the relief in the criminal Court under Section 138 of the Negotiable Instruments Act and as such, the said proceedings are liable to be quashed.

(3.) In elaboration of the above ground, Mr. Jothi, the learned counsel appearing for the petitioner by pointing out the relevant provisions of the Negotiable Instruments Act, would make the detailed submissions which could be summarised as follows :-