D CHANDRA REDDY Vs. GOWRISETTY PRABHAKAR RAO

JUDGEMENT

(1.) These two petitions under Section 482 Cr.PC have been filed for quashing the proceedings in CC No.99 of 1999 and CC No.104 of 1999 on the file of Special Mobile Court, Kareemnagar.

(2.) The petitioner, who is the accused in both the cases, has been prosecuted for offence under Section 138 of Negotiable Instruments Act (for short Act) on the ground that it is the Managing Director of the Company who issued the cheque and petitioner did not issue any cheque in his personal capacity and as such the offence under Section 138 of the Act cannot be fastened to the petitioner.

(3.) The gist of the allegations in the complaint may be noted. The complainant has been running finance business under the name Om Sal Securities and Investments Private Limited. The accused approached the complainant for finance and requested the plaintiff to pay Rs.6,40,000.00. The complainant paid to the accused a sum of Rs.6,00,000.00 through a demand draft and Rs.40,000.00 in cash on 22-11-1996. The accused executed a memorandum of understanding in favour of the complainant and as per the terms of agreements he was to pay interest at 24% per annum quarterly. The accused agreed to pay entire amount within six months. The accused after receiving the amount had issued four blank cheques for Rs.6,00,000.00. The accused also agreed to issue share certificates. The complainant after waiting for the agreed period of six months demanded the accused for payment of the amount. The accused issued two cheques for a sum of Rs. 1,00,0007-each, one cheque for Rs.1,40,000.00 and another cheque for Rs.3,00,000.00 towards discharge of his debt.