B MANIPAL REDDY Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) These petitions are filed under Section 482 of Code of Criminal Procedure (Cr.PC) seeking quashing of the proceedings in CC Nos.484, 479, 481, 482, 483, 480 and 768 of 1997 respectively, on the file of IV Metropolitan Magistrate, Hyderabad, in which the petitioner accused is facing charge under Section 138 of Negotiable Instruments Act (for short, the Act).

(2.) It appears that the Company, which is represented by the petitioner herein, had agreed to allot some of its shares by private placement out of promoters quota in favour of the complainant and received certain amounts. Later the accused failed to allot the said shares and under a mutual agreement he agreed to repay the amounts received towards the price of shares. Accordingly, towards repayment of the said amount, a cheque for the requisite amount in each case was given by the Company, which is said to be represented by the accused, to the complainant. The cheques in question were presented for realisation and they were returned on the ground of insufficiency of funds to the credit of the Company, which the accused represents. A notice under Section 138 of the Act was sent by the complainant and inspite of receipt of the notice, as no payment was made the complaints as mentioned above have been filed.

(3.) Learned Counsel for the petitioner seeks quashing of the proceedings mainly on the ground that the requirements of Section 141 of the Act are not complied with in the complaint. The contention is that the petitioner-accused is merely a Director of the Company and the complaint, a copy of which has been filed with the petition, does not mention anything as to how the petitioner-accused was in-charge of the affairs of the Company and was responsible to the Company. A reading of the complaint would show that there is no averment that the petitioner-accused was in-charge of and was responsible to the Company.