VIF AIRWAYS LIMITED HYD Vs. AISHU FINANCE LIMITED

JUDGEMENT

(1.) This is a petition under Section 482 of the Cr.PC filed by the petitioner (A2) to quash the proceedings in CC No.72 of 1997 on the file of the XV Metropolitan Magistrate, City Criminal Courts at Hyderabad.

(2.) According to the complaint filed by the 1st respondent herein, the 1st respondent is a finance company. A1 is a registered company incorporated under the Companies Act of which A2 i.e., the petitioner herein is the Chairman and Managing Director and A3 to A9 are the business Directors. They have regular business transactions.

(3.) While so, as on 12-6-1996, Al company was due an amount of about Rs.32 lakhs and in discharge of that liability, it issued three cheques bearing Nos.024725 dated 27-6-1996 for an amount of Rs.12,37,756/-, 024726 dated 1-8-1996 for an amount of Rs.10 lakhs and 024727 dated 1-9-1996 for an amount of Rs.10 lakhs. When the cheque bearing No.024725 dated 27-6-1996 was presented by the 1st respondent-company through its bankers, it was informed on 12-11-1996 that it was dishonoured with an endorsement "insufficiency of funds". Subsequently, after following the procedure as contemplated under Section 138 of the Negotiable Instruments Act, the 1st respondent filed the present complaint, which was taken cognizance of by the learned Magistrate.