N LAXMAN Vs. SHANUKHA COTTON TRADERS

JUDGEMENT

(1.) The question raised for consideration in all these criminal petitions is one and the same, except the names of the respondents and the cheque numbers and the amount involved therein. As such these petitions are heard together and are being disposed of by this common order. For the sake of convenience, the facts in Criminal Petition No.1497 of 1998 arc taken into consideration for disposal of these petitions.

(2.) Criminal Petition No.1497 of 1998 is an application filed under Section 482 of the Code of Criminal Procedure, 1973 {for short 'the Code') to quash the proceedings in CC No.145 of 1997 on the file of the Munsif Magistrate, Chilakaluripeta, Guntur District. Accused Nos.5, 6 and 7 are the petitioners herein and the first respondent is the complainant.

(3.) The allegations made in the complaint, inter alia are as follows : The complainant, who is the first respondent herein is doing business in cotton having principal place of business at Chilakaluripeta. Accused No.2 is the General Manager, Accused No.3 is the Chairman and Accused Nos.4 to 7 are the Directors of Al company. The first respondent/complainant had supplied cotton bales worth about Rs. 1,90,28,877-98 (Rs. One crore ninety lakh, twenty eight thousand eight hundred seventy seven and ninety eight paise only) from 10-4-1995 onwards for which Al company had maintained Khata, made part payments and also issued cheques towards part payments. As on 12-3-1997 A1 company has to pay an amount of Rs.63,32,702.20 (Rs. Sixty three lakh, thirty two thousand seven hundred and two and paise twenty only) as per the Khata of the first respondent-complainant firm. However, Al company had issued cheques for Rs.13,96,000.00 (Rs. thirteen lakh ninety six thousand only) towards part payment of Khata and the first respondent/complainant presented the said cheques through their Bankers Indian Bank, Chilakaluripet. The first respondent/complainant had presented one cheque for Rs.2,00,000.00 on 28-11-1996 and on 29-2-1997 he accordingly informed the same to Al. Likewise, the first respondent/ complainant had presented three cheques dated 21-11-1996; 19-12-1996 and 26-12-1996 for Rs.1,50,000.00; Rs.1,75,000.00 and Rs.1,71,000.00respectively on 20-2-1997 and accordingly informed the same to the A1 company. Likewise the first respondent/complainant had also presented another four cheques dated 5-12-1996; 12-12-1996; 2-1-1997 and 3-3-1997 for a sum of Rs.2,00,000.00; Rs.2,00,000.00; Rs.1,50,000.00 and Rs.1,50,000.00 respectively and informed the same to Al company. The Al company failed to honour the said cheques and returned all the cheques as "exceeds arrangements". It is alleged by the first respondent/complainant that Al company knowing fully well that there are no funds with their bankers, in their account, issued the cheques and also informed the first respondent/ complainant to present the cheques and made the first respondent/complainant to believe that all the cheques will be honoured, as if Al- company had cash in the Bank. The first respondent/complainant presented the cheques believing Al-company; but, the cheques were dishonoured due to non-availability of funds. As such the bankers of the first respondent/ complainant had returned all the cheques to the first respondent/complainant on 10-3-1997. Immediately, the complainant got issued a legal notice on 15-3-1997 demanding Al company to pay the due amount immediately. Al- company having received the same got issued a reply notice admitting issuance of cheques for Rs.13,96,000.00 and requested time for payment of the amount through its Law Officer.