KULIK PAPER INDUSTRIES PVT LTD Vs. SANJAY AGARWALA

JUDGEMENT

(1.) This revisional application is for quashing of a proceeding being C.R. Case No. 478/ under section 138 of the Negotiable Instruments Act pending in the Court of the learned Sub-Divisional Judicial Magistrate, Raiganj, Uttar Dinajpur.

(2.) The opposite party herein filed a petition of complaint in the Court of learned Sub-Divisional Judicial Magistrate, Raiganj alleging commission of an offence under section 138 of the Negotiable Instruments Act. In the said petition of complaint it was alleged that the accused No. 2 is the Director of the accused No. 1 Company, who was in charge of and was responsible to the conduct of the day to day business of the Company. For the payment of some outstanding bills the accused person issued four cheques drawn on Central Bank of India, Calcutta Main Office in favour of the complainant. The aforesaid four cheques were duly presented for encashment by the complaint. But out of the said four cheques only one cheque was honoured by the Bank and the rest three cheques were dishonoured by the Bank due to insufficient fund in the account. Having received the said intimation from the Bank the complainant sent a demand notice through his Advocate on 30.6.97 asking the accused person to make the payment of the cueque amount within the stipulated period. It was alleged that having received the aforesaid notice the accused met the complainant and requested him to present the said three cheques once again for encashment after 25th July, 1997. The complainant accepted the said request of the accused and presented the said three dishonoured cheques for encashment in Allahabad Bank, Mohanbati Branch. But the said three cheques were again dishonoured by the Bank, which was intimated to the complainant by the Bank through a memo dated 7.8.97. The complainant thereafter sent a demand notice for the second time to the accused No. 1 on 18.8.97. After delivery of the said notice the acknowledgement card was received by the complainants' Advocate on 21.8.97. Thereafter on failure to make the payment by the accused the petition of complaint was filed in Court.

(3.) On 19.2.98 an application was filed on behalf of the present petitioner before the learned Magistrate challenging the maintainability of the proceeding. The petitioner prayed for discharge from the said case on the ground that the petition of complaint was filed beyond the statutory period as prescribed in the NI Act. It was further stated in the said application that the company was declared as a sick industrial Company under the Sick Industrial Companies (Special Provisions) Act. The said application was taken up for hearing on 28.10.98 and the same was rejected by the learned Magistrate. It is at this stage the petitioners have come up before this Court challenging the said order dated 28.10.98 as also with a prayer for quashing of the proceeding.