ROHINTON NORIA Vs. NCC FINANCE LTD

JUDGEMENT

(1.) Heard both sides.

(2.) This petition under Section 482 of Cr. PC seeks quashing of the proceedings in C. C. No. 329 of 1998 on the file of the XXIII Metropolitan Magistrate, Hyderabad in which the petitioner as accused No. 5 faces a charge under Section 138 of the Negotiable Instruments Act along with four other accused.

(3.) The respondent No. 1-complainant is said to be a company called M/s. NCC Finance Limited. According to the averments in the complaint, the accused No. 1 approached the complainant for purchasing computer equipment on hire purchase basis. The accused entered into a hire purchase agreement for an amount of Rs. 8,07,921.00 with the complainant company on 4-9-1997. The amount was to be repaid in 18 instalments at the rate of Rs. 44,876.00 per month. The accused paid the first instalment and part of second instalment and thereafter committed defaults. The accused issued cheque No. 607682 dated 4-2-1998 for an amount of Rs. 44,885.00 drawn on State Bank of Hyderabad, Industrial Finance Branch, Hyderabad towards payment of the said instalment. The cheque was signed by accused Nos. 2 and 3 on behalf of accused No. 1 company "with the instructions, knowledge, consent and finance of accused 4 and 5". The cheque was returned for the reason of funds being insufficient to the credit of accused No. 1 company. The complainant issued notice as required under Section 138 of the Negotiable Instruments Act demanding payment of the amount covered within 15 days. The notice was served but the accused failed to make the payment within the prescribed time. Hence, this complaint has been filed.