SECUNDERABAD HEALTH CARE Vs. SECUNDERABAD HOSPITALS

JUDGEMENT

(1.) This is an application filed under Section 482 of the Code of Criminal Procedure to quash the proceedings in C.C.No.897 of 1996 on the file of the learned XIth Metropolitan Magistrate, Secunderabad. The petitioners are the accused in C.C.No.897 of 1996. the first respondent is the company incorporated under the Companies Act. Respondents 2 to 7 are the Directors of the Company.

(2.) The respondents herein filed complaint to punish the petitioners-accused for having committed an offence Under, Section 13 8 of the Negotiable Instruments Act (for short 'the Act'). The allegations levelled in the complaint may briefly be noticed.

(3.) The accused-company is a tenant of the complainant on a monthly rent of Rs. 1,80,095.40 (Rupees one lakh eighty thousand ninty five and paise forty only). It is also alleged that the accused issued the following cheques towards rent, payable by it to the complainant. 1. Cheque dated 16-4-1996 for a sum of Rs. 1,00,000.00 drawn on Prudential Cooperative Urban Bank Limited, 2. Cheque dated 5-2-1996 for a sum of Rs. 1,80,095-10 Ps. drawn on S.B.H. Gunfoundry Branch. 3. Cheque dated 5-3-1996 for a sum of Rs. 1,80,095-40 Ps. drawn on S.B.H. Gunfoundry Branch, Hyderabad.The complainant presented the chequed for encashment and all the three cheques were returned dishonoured on 3-5-1996 with an endorsement "insufficient funds". The complainant thereafter got issued notice dated 4-5-1996 to the accused and the said notices were received by all the Directors. The accused failed to pay the Cheque amount within fifteen days from the date of receipt of notices. It is under those circumstances, the complaint was filed. The complainant was examined and the learned Magistrate had taken cognizance of the case under Section 138 read with 142 of the Act and accordingly directed to issue summons.