VARTEX SPINING LIMITED Vs. SYNDICATE BANK

JUDGEMENT

(1.) The applicant has filed this petition under Section 482 of Criminal Procedure Code (for brevity " Cr.P.C.") against order dated 01/11/2018 passed by Judicial Magistrate First Class, Indore in Criminal Case No. 595/2017, whereby learned Magistrate has taken the cognizance against the applicant for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (for short "NI Act") on the basis of private complaint filed by the respondent.

(2.) Briefly stated facts of the case are that applicant took industrial loan from the respondent/bank, however, his loan account was declared 'NPA' on 30/10/2008 and the respondent/bank moved an application No. 169/2010 against the applicant before DRT, Jabalpur, for recovery of the loan amount from the property, which was kept mortgage in the bank. This application was decided by order dated 26/08/2016. Thereafter, applicant proposed for one time settlement and he issued a cheque No. 185038 dated 09/03/2017 for the amount of Rs.1,22,75,000/- in favour of the respondent/bank. The same was presented by the respondent/bank for encashment on 03/05/2017 and the said cheque was return unpaid due to insufficiency of fund. Thereafter, respondent/bank send a notice to the applicant for payment of the cheque amount and when after service of notice, applicant has not paid the cheque amount, the respondent/bank filed a private complaint against him under Section 138 of the NI Act, on the basis of which learned Magistrate has taken the cognizance against the applicant. Being aggrieved by the impugned order, the applicant has preferred this petition under Section 482 of the Code before this Court.

(3.) Learned counsel for the applicant submits that he proposed for one time settlement and if the said settlement was accepted by the respondent/bank, then he was ready for payment of the cheque amount to the respondent/bank. However, his proposal was rejected by the respondent/bank but the cheque in question was not returned to the applicant and by misusing the same, the respondent/bank presented it for collection. When the cheque in question was dishonoured, the respondent/bank has filed a private complaint against the applicant. Under these circumstances, learned counsel for the applicant prays for quashment of the impugned order, by which cognizance has been taken against the applicant for the offence punishable under Section 138 of the NI Act.