VISHAL Vs. BANK OF INDIA

JUDGEMENT

(1.) This is a petition under Sec. 482 of the Code of Criminal Procedure, 1973 (for short 'the Code') for quashment of criminal complaint proceedings in complaint case No.62/05 pending before the Court of Judicial Magistrate First Class, Indore against petitioner and 7 other persons including Rise and Infotech Ltd. - a company incorporated under the Companies Act.

(2.) The complaint has been filed by respondent/Bank for an offence under Sec. 138 of Negotiable Instruments Act, 1881 (for short 'the Act') averring therein that cheque for a sum of Rs.18,10,000.00 bearing No.676645, dated 28.08.2004 was issued by Lokendra Bandi shown as accused No.8 in the complaint towards discharge of legally enforceable liability which was eventually dishonoured by the Bank on 28.08.2004 on account of insufficient balance. Thereafter, a demand notice was issued by the Bank, however, Lokendra Bandi instead of paying the amount, vide a reply notice said to have been sent on 10.10.2004 (Copy Annexure P/6) sought time to pay the same.

(3.) It is submitted by learned counsel for the petitioner that liability under Sec. 138 of 'the Act' is only against the drawer of the cheque who has failed to pay the amount under the cheque within the statutory period, despite a demand notice as stipulated under Sec. 138 of 'the Act'. It is further submitted that in the instant case, cheque for Rs.18,10,000.00 was issued by Lokendra Bandi in his personal capacity as averred in para-6 of the complaint, therefore, penal liability with regard to dishonour of the aforesaid cheque cannot by any stretch of imagination be fastened against the petitioner who is said to be a Director of Rise and Infotech Ltd.