VINOD Vs. SBI GLOBAL FACTORS LTD

JUDGEMENT

(1.) Heard the learned Counsel for the parties.

(2.) This Application is filed by the applicant under Section 482 Cr. P.C. to quash and set aside the proceedings in Criminal Case No. 882/SS/10 pending before the learned Metropolitan Magistrate, 12th Court at Bandra, for the offence under Section 138 of Negotiable Instruments Act registered on the basis of the complaint lodged by the complainant-Respondent No. 1.

(3.) The complainant is a non-banking financial company registered under the Companies Act with its head office at Mumbai. It has also network to provide financial aid and loan. The applicant is a proprietor of M/s. Kinger India having its office at New Delhi. According to the complainant, the accused as proprietor of M/s. Kinger India approached the complainant for trade financial facilities. The complainant agreed to provide and sanction trade financial facilities to the accused upto maximum limit of Rs. 4 crore vide sanction letter dated 26.9.2005. On the basis of that, agreements were entered into between the complainant and the accused on 26.9.2005 and 19.12.2007. Pursuant to the same, from October 2005, the complainant started disbursing funds to the accused. In discharge of his liability for repayment of the amounts, the accused issued in all 11 cheques dated 15.10.2009 for different amounts. Two cheques were drawn against the account of the accused maintained with Indian Bank, South Extension Branch, New Delhi, while remaining 9 cheques were issued against his account maintained with YES Bank Ltd., New Delhi Branch. The said cheques were presented for encashment through Axix Bank Ltd., BKC Branch, Mumbai. Out of them, two cheques were returned unpaid with endorsement "funds insufficient" by the drawee Bank, i.e. Indian Bank and remaining 9 cheques were returned by the drawee bank i.e. Yes Bank Ltd., New Delhi Branch with an endorsement "account closed". Inspite of service of the statutory notice, the accused failed to make the payment of the cheque amount within the stipulated period. Therefore, the complainant filed the complaint under Section 138 of Negotiable Instruments Act before the Metropolitan Magistrate, 12th Court at Bandra, Mumbai. The learned Magistrate recorded verification statement of one Pragati B. Malle a senior officer of the complainant company. In that verification statement, he gave all the details. Relevant documents were also produced along with the complaint. The learned Magistrate issued process against the accused.