OTHIAPPAN Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THESE two petitions are filed under Section 482 of the Criminal Procedure Code to quash the proceedings in Calendar Case Nos.226 of 2007 and 35 of 2008 respectively pending on the files of the Judicial Magistrate of I Class, Adilabad. Both the cases were filed for the offence under Section 138 read with 142(1) of the Negotiable Instruments Act.

(2.) THE substance of both the complaints is that one Sudhakar Pillai was indebted to the complainant to a tune of Rs.26,86,000/-, for which, S. Othiappan, who is the father-in-law of the said Sudhakar Pillai, gave a confirmation letter dated 12.12.2006 and thereafter undertook to repay the amount and he has given a guarantee agreement. In pursuance of the said agreement, he has issued ten cheques and out of them, two cheques for Rs.2,50,000/-, dated 13.3.2007 and 13.2.2007 were presented and they were dishonoured with an endorsement 'Payment stopped by the drawer'. THEreafter, after giving notices, the complaints were filed as the amount was not paid. THEse petitions are filed mainly challenging that the prosecution was launched against the Company and not in the individual capacity and added to that the cheques were not issued in the individual capacity and that there is no enforceable liability.

(3.) IT is also not in dispute that the cheque has been issued in both the cases for a sum of Rs.2,50,000/- each drawn on Oriental Bank of Commerce, Coimbatore, and they were issued by the Company M/s. Abhirami Electronics Private Limited signed by the Managing Director, who is no other than the father-in-law of the Sudhakar Pillai. Therefore, the cheques were issued by the Company.