KRISHNA BHOOPAL Vs. K VENKATA SUBAMMA

JUDGEMENT

(1.) A-3 in C.C.Nos. 639 of 1999 and 641 of 1999 on the file of the court of IV Additional Munsif Magistrate, Guntur, filed these petitions to quash those criminal proceedings initiated by the 1st respondent in these petitions (complainant in the above said C.Cs.) under Section 138 of the Negotiable Instruments Act (the Act), on the ground that he (petitioner) ceased to be a Director of A-1 company on the date on which the cheques which were dishonoured, were drawn.

(2.) According to the complaint in both the cases, A-l, of which A-2 and A-3 are Directors, issued cheques drawn on the State Bank of Travancore, Hyderabad, which were presented for payment were dishonoured and though statutory notice of dishonour was issued to the three accused they did not either send a reply or pay the amount covered by those cheques which were dishonoured and hence are liable to be punished under Section 138 of the Act.

(3.) The contention of the learned counsel for the petitioner is that since the petitioner tendered his resignation as a Director of A-l company as long back as on 6-3-1999 i.e., long prior to the date of the dishonoured cheques, it is clear that petitioner ceased to be a director of the A-l company even before the cause of action arose and so the proceedings against him are liable to be quashed. He placed strong reliance on the order passed in Criminal Petition No. 2099 of 2001 dated 26-4-2002, where the proceedings against the petitioner in the similar case, were quashed on the ground that he ceased to be the Director of A-l before the date mentioned in the cheque. He contended that since the Certified Copy of Form No. 32 issued by the Registrar of Companies show that petitioner resigned as Director of A-l on 6-3-1999 no further proof that A-l ceased to be a director of A-l from 6-3-1999 is necessary.