P RAVINDER REDDY Vs. NCC FINANCE LTD

JUDGEMENT

(1.) These three criminal petitions are filed under Section 482 Cr.P.C. to quash the criminal proceedings initiated against these petitioners in C.C.No. 560/97, 558/97 and 559/97 respectively on the file of V Metropolitan Magistrate, Hyderabad.

(2.) The facts, in brief, are as under: The 1st respondent herein M/s. NCC Finance Ltd. is a Limited Company incorporated under the Companies Act and it has been doing business in hire purchase, leasing and bill discount, etc. M/s. Ravileela Diary Products is also a Limited Company incorporated under the Companies Act. The 1st petitioner herein P. Ravinder Reddy is the Chairman, J. Madhan Mohan Reddy is the Managing Director, P. Srinivasa Reddy, Samantha Reddy and the petitioners 2 and 3, P. Poorna Chandra Reddy and A. Sanjeeva Reddy are the Directors of the said Ravileela Diary Products Ltd. M/s. Ravileela Diary Products Ltd. entered into hire purchase agreement with the 1st respondent-Company for extending financial assistance for a total sum of Rs. 43,65,000/-. The Managing Director and another Director P. Srininvasa Reddy stood as guarantors to the said transaction. They agreed to discharge the said amount in 36 monthly instalments of Rs. 1,22,500/- per month. They paid 14 instalments and committed default in paying the remaining instalments. On the persuation made by the 1st respondent, they gave five cheques bearing No. 537033, dated 5-1-1997,537034, dated 5-2-1997,537035, dated 5-3-1997,537036, dated 5-4-1997 \ 537037, dated 5-5-1997, 537038, dated 5-6-1997, each cheque for a sum of Rs. 1,22,500/-. All these cheques were issued by the Managing Director Madhan Mohan Reddy on behalf of the Company. When the 1st respondent herein presented the said cheque for realisation to its Banker, Canara Bank, Industrial Finance, Hyderabad, they were dishonoured and returned with an endorsement "insufficient funds". Thereafter, the 1st respondent got issued legal notice to all of them demanding to pay the amount equivalent to the cheque amount within 15 days from the date of receipt of the notice. Though notice was served on all of them, they failed to pay the amount. Hence, the 1st respondent-Company filed C.C.No. 560/97 with respect to the dishonour of the cheques bearing No. 537034, dated 5- 2-1997, 537036, dated 5-6-97; C.C. No. 558 / 97 for the dishonour of the cheques bearing No. 537033, dated 5-1-1997, 537034, dated 5-2-1997 and 537035, dated 5-3-1997 and C.C.No. 559/97 for the dishonour of the cheque bearing No. 537038 dated 5-6-1997 against the Company Ravileela Diary Products Ltd. (A1), its Managing Director A-2, its Chairman A-3 and Directors A-4 to A-7. All these cases have been filed for the offence punishable under Section 138 of the Negotiable Instruments Act (hereinafter called as Act).

(3.) The petitioners who are A-3, A-6 and A-7 respectively in all the three cases, have come up with these petitions to quash the said proceedings as far as they are concerned.