SNEHA Vs. P C P PHARMACEUTICALS PVT LTD

JUDGEMENT

(1.) THE petition is filed under Section 482 Cr. PC seeking to quash proceedings against the petitioners-A4 and A5 in STC no. 83 of 2006 on the file of III Metropolitan magistrate, LB Nagar, RR District.

(2.) HEARD the learned Counsel for the petitioners and the respondents. Perused the records.

(3.) THE first respondent herein filed a complaint before the learned Magistrate against the petitioners and 3 others, alleging offence under Section 138 of the Negotiable instrument Act (for short 'the Act' ). According to the first respondent, he was engaged in the business of manufacture and sale of pharmaceutical formulations and A. 1- a Private Limited Company, represented by A. 2 to A. 5 as its Directors, used to place orders for supply of Pharmaceuticals with the complainant's Company and in that connection, A. 1 Company became due in a sum of Rs. 34,00,000/- by March 2005 for the Financial Years from 2002-2005. It is further averred by the complainant that a. 1 Company represented by the 2nd accused settled the accounts on 18. 3. 2005 and entered into Memorandum of Understanding (for short 'mou') on the same day by fixing payment schedule and also delivery of further consignments. As per the said Mou, a. 1 Company represented by A. 3 issued cheques worth Rs. 100. 00 lakhs, which included the outstanding liability of rs. 34,00,000/- and further consignment worth of Rs. 66,00,000/- It is further alleged that when the complainant's Company presented the first cheque for Rs. 5,00,000/- dated 23. 3. 2005 as per Mou for encashment through its banker, Syndicate Bank, habsiguda Branch, it was dishonoured with endorsement 'refer to drawer'. When contacted on phone, A. 1 Company represented by a. 2 to A. 5, expressed financial difficulty and requested the complainant to present all the cheques in the month of September, 2005. When the complainant presented three cheques of Rs. 5,00,000/- each issued by a. 1 dated 30. 5. 2005, 30. 5. 2005 and 10. 6. 2005 to complainant's banker ICICI Bank, for encashment, the cheques were dishonoured with endorsement 'payment is stopped by the drawer'. The complainant issued legal notice dated 6. 12. 2005 to A. 1 to A. 5, which were served on 12. 12. 2005, but the accused did not pay the amount and gave a reply dated 12. 1. 2006 with false allegations.