MIDEX OVERSEAS LTD Vs. MAHESHWARI PROTEINS LTD

JUDGEMENT

(1.) By this petition under Section 397/401 r/w Section 482, Cr.P.C. the accused petitioners seek quashment of the order dated 1.9.1997 and the proceedings drawn against them under Section 138 of the Negotiable Instruments Act, 1881 (for short, 'the Act'), by the Chief Judicial Magistrate, Ratlam, in Cr.Case No. 654/ 1997.

(2.) The accused petitions are partners of the firm Midex Overseas Ltd., having its registered office at Indore. Accused petitioner No. 1 Narottam Somani issued a cheque dated 6.5.1997 in favour of respondent No. 1. On this cheque being presented for payment, Bank on 7.5.1997 returned the same unpaid with the endorsement "refer to drawer". The respondent complainant further averred in the complaint that the cheque was returned unpaid as the accused petitioners had advised the Bank to stop the payment. The respondent No. 1 filed complaint against the petitioners alleging commission of offences under Section 138 of the Act and Sections 420, 120B and 34, IPC. The learned CJM, after recording evidence under Sections 200 and 202, Cr.PC. directed for registration of case only under Section 138 of the Act and issued bailable warrant of arrest against the petitioners. On appearance, the petitioners made application for dropping of the proceedings contending that on the facts as alleged no offence u/Section 138 of the Act is made out. However, the learned CJM by his order dated 1.9.1997 has rejected the application.

(3.) I have heard Mr. S.R. Saraf, learned Counsel for petitioners and Mr. H.S. Oberai, learned Counsel for respondent No. 1, Mr. G. Desai, learned GA also addressed the Court.