RAM CHANDRA AGARWAL Vs. STATE OF U P

JUDGEMENT

(1.) COMMON questions involved in all the aforesaid applications relate to the question as to whether liability can be transferred to subsequent buyer of the company which has drawn cheques for discharge of its debt or liability under Section 138 of Negotiable Instruments Act (herein after referred to as N.I. Act). Since this question is involved in all the aforesaid applications, it is deemed proper to decide them by a common judgement.

(2.) IN order to determine this issued Application U/s 482 No. 14646 of 2012 is taken as leading case and in order to appreciate the controversy involved certain facts are required to be noted for proper adjudication of the case, which is as under:

(3.) VISHAL Retail limited is duly registered under the Companies Act having its registered and Corporate office at Plot No. 332, Near Telco Service Station, Behind Shokeen Farmlands, Rangpuri Extension, New Delhi. Applicants No. 1 to 3 are Directors of the Company. Respondent no. 2 (hereinafter called as the complainant) is in the business of Garment stitching and manufacturing of ready -made garments. Applicants accused had a running agreement with the complainant for stitching of garments of the cloths/fabric/materials which were supplied by the accused applicants i.e. Vishal Retails Limited. As per agreed terms, the accused applicants company were required to make payments of the job work conducted by the complainant within stipulated time span of 60 -75 days from the date of delivery of finished goods which was supplied against way bill issued by the accused persons. As agreed upon in terms of the agreement accused persons have issued post dated cheques to the complainant. Every thing went on smoothly until March 2011. Cheques which were issued for its encashment after March, 2011 could not be encashed as a result of which present controversy has arisen. In the present case, Cheque No. 477738 for an amount of Rs 6,45,510/ - was issued on 16.4.2011 drawn on A/c No. 31003763038, SBI, South Extension, New Delhi. Aforesaid cheque was presented by the complainant to their bankers in Bhadohi where they are carrying their business. The said cheque was presented on 27.4.2011 which was returned with memo of the Bank that the cheque could not be cleared due to insufficient funds.