ADARSHA EDUCATIONAL SOCIETY Vs. SHIRAM CHITS PVT LTD

JUDGEMENT

(1.) This Criminal Petition is filed by the petitioner-A-2 under Section 482 Cr.P.C. to quash the proceedings in C.C. No. 8 of 2005 on the file of the I Additional Munsif Magistrate, Warangal, which was filed for the offence punishable under Sections 138 and 141 of the Negotiable Instruments Act, 1881 (for short 'the Act').

(2.) A-2 is a society registered with the Registrar of Societies and it is running various educational institutions including 'Adarsha Junior College'-A-1 at Hanmakonda. A-2 is the subscriber of complainant in the chit transaction and became highest bidder in the auction conducted on 10-10-1999. A-2 has withdrawn the prized amount by furnishing sureties. Thereafter, A-2 paid 27 instalments and committed default from April, 2001. In spite of repeated demands and issuance of notice, the accused or his guarantors did not pay the amount. Therefore, the complainant filed a suit in O.S.No. 512 of 2002 on the file of the Principal Senior Civil Judge, Warangal for recovery of money against A-2 and its guarantors. While the things stood thus, A-1 through its principal which is one of its educational institution, issued acheque dated 30-11 -2004 for Rs. 1,55,000/- drawn on Vijaya Bank Ltd., AJC Extension Counter, Hanmakonda and when it was presented, it was returned with an endorsement funds insufficient. Thereafter, the complainant got issued statutory legal notice calling upon the accused to pay the amount and the said notice was received by the accused, but failed to pay the amount. Hence the complaint.

(3.) Learned counsel for the petitioner contended that no prima facie case is made out under Section 138 of the Act against the present petitioner, that the petitioner has not issued any cheque and no notice was issued to A-2 as contemplated under Section 138(b) of the Act and hence, he prays to quash the proceedings.