KOPPULA RAMACHANDRA RAO Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) This petition is filed by the accused under Section 482 Cr. P.C. for quashing proceedings in C. C. No. 406 of 2006 on the file of Judicial Magistrate of the First Class, Chintapalli relating to offence punishable under Section 420 I.P.C.

(2.) It is alleged that the petitioner obtained hand loan of Rs. 30,000/- prior to 30-9-2004 and that at the instance of group of elders, the petitioner issued cheque dated 30-9-2004 in favour of the 2nd respondent/de facto-complainant for Rs. 30,000/- on State Bank of Hyderabad, Errampeta Branch, Khammam District and that the said cheque was dishonoured. Thereupon, the 2nd respondent filed CC No. 226 of 2005 before the Judicial Magistrate of the First Class, Narasipatnam for offence punishable under Section 138 of the Negotiable Instruments Act against the petitioner. Subsequently, at the instance of the 2nd respondent the police filed C. C. No. 514 of 2005 against the petitioner in the same Court at Narsipatnam alleging offence punishable under Section 420 I.P. After establishment of Magistrate Court at Chinatapalli, CC. No. 514 of 2005 was transferred to Chinatapalli Magistrate Court and it was re-numbered as C. C. No. 406 of 2006. It is not disputed in this petition that both the criminal cases, one for offence punishable under Section 138 of the Negotiable Instruments Act and the second one for offence punishable under Section 420 I.P.C. are maintainable. In fact, C. C. No. 514 of 2005 which was re-numbered as C. C. No. 406 of 2006 was filed by the Sub Inspector of Police, Sileru Police Station in Crime No. 17 of 2005 which crime was registered on report given by the 2nd respondent.

(3.) It is contended by the petitioner's Counsel that transaction between the accused and the de facto-complainant being a loan transaction, is primarily a contract and that even if there is any breach of contract, criminal case is not maintainable for offence under Section 420 I.P.C. and that remedy of the petitioner is before a Civil Court. Reliance was placed by the petitioner on Medchel Chemicals and Pharma Pvt. Ltd. v. Biological E. Ltd., 2000 AIR(SC) 1869 in this regard. It was held therein: