(1.) 1st respondent initiated proceedings in C.C. No. 101 of 1998 on the file of the Court of the XV Metropolitan Magistrate, 'Hyderabad, under Section 138 of the Negotiable Instruments Act (for short, 'the Act') against M/s. Neo Intex Mills Limited (Company), 'petitioners and five others in their capacity of Directors of the Company alleging that cheques dated 25.8.1997 and 25.9.1997, issued by A4 for and on behalf of the company, were dishonoured when presented in the Federal Bank, Lakdi-kapul, Hyderabad, and that in spite of statutory notice contemplated by Section 138 of the Act, petitioners and the other Directors of the Company or the Company did not arrange for payment of the amount covered by the dishonoured cheques.
(2.) Contending that the 1st petitioner had tendered resignation to the post of Director of the Company and that resignation was accepted by the Board of Directors of the Company, and that Courts at Hyderabad had no territorial jurisdiction to entertain the complaint, this petition is filed under Section 482, Cr.P.C. to quash the proceedings in the aforesaid C.C. No. 101/1998.
(3.) The contention of the learned Counsel for the petitioners is that since post-dated cheques drawn and issued to the 1st respondent at Chennai are the subject matter of case and since the notice of dishonour was issued from Chennai, and since in respect of some more bounced cheques proceedings under Section 138 of the Act were launched at Chennai, by 1st respondent, cause of action arose only at Chennai, but only with a view to harass the petitioners and others, this complaint, filed at Hyderabad where no cause of action arose, is not maintainable and hence is liable to be quashed. He contended that in any event since the resignation of 1st petitioner as Director was accepted by the Board of Directors of the Company, the complaint against the 1st petitioner, at least, is liable to be quashed.