AVON INDUSTRIES LTD Vs. INTEGRATED FINANCE COMPANY LTD

JUDGEMENT

(1.) The petitions seek to invoke the inherent jurisdiction of this Court under S. 482 of the Criminal Procedure Code ('the Code' for brevity) for quashing the criminal proceedings initiated against them by the first respondent herein.

(2.) Although some of the parties are different and some are same, as common questions of law are involved, all these petitions can be disposed of together. CRIMINAL PETITION NOS. 4432 TO 4439 OF 1999 :

(3.) The factual matrix, which is germane for effective adjudication of the matter, may be set forth thus : The first petitioner-M/s. Avon Industries Limited is a Company duly incorporated under the provisions of the Companies Act. The second petitioner is its Managing Director, the third petitioner is its Joint Director, and the fourth petitioner is its Executive Director. The first respondent is also a Company duly incorporated under the provisions of the Companies Act. The first respondent-Company has been carrying on business as corporate financiers. The first petitioner-Company obtained finances from the first respondent-Company for the purposes of its business. In discharge of the said debt and towards part payment of the amounts due, the first petitioner-Company issued various cheques drawn on Canara Bank, Basheerbagh Branch, Hyderabad, in favour of the first respondent-Company. When the first respondent-Company at the request of the petitioners presented those cheques for clearance, those cheques were bounced. The first respondent-Company, therefore, got a statutory notices issued to the petitioners calling upon to pay the amounts covered by the dishonoured cheques within 15 days from the date of receipt of the said statutory notices. The first petitioner-Company received the said notices, whereas the petitioners 2 to 4 refused to receive the said notices. The first respondent-Company, therefore, filed the criminal complaints against the petitioners 2 to 4 along with the company for the offence punishable under S. 138 read with S. 142 of the Negotiable Instruments Act ('the Act' for brevity). The petitioners 2 to 4 appeared before the Magistrate pursuant to the summons issued in those criminal cases and moved this Court, as aforesaid, for quashing the proceedings initiated against them.