INDUSIND BANK Vs. STATE OF ASSAM

JUDGEMENT

(1.) By means of this application under Section 482 of the Cr.P.C., the petitioners are seeking for quashing of the order dated 12.05.2010 passed by the learned Judicial Magistrate, First Class, Dibrugarh in C.R. Case No. 388C/2009, whereby, the learned Court took cognisance of the offence under 22against the petitioners.

(2.) The facts leading to the filing of the petition in brief are that the respondent No. 2, herein, availed a loan from the petitioner No. 1, the Indusind Bank Limited through Ashok Leyland Finance Ltd. for purchasing a motor cycle by executing an agreement dated 21.06.2004. The loan was to be repaid in 36 equated monthly instalments. But after repayment of few instalments, there was default on the part of the respondent No. 2 and the post dated cheques issued by him at the time of availing the loan were dishonoured for which, his loan account was categorised as a Non-Performing asset. Due to default of the respondent No. 2 and on his failure to respond to the notices repeatedly issued to him, the vehicle was repossessed on 16.01.2006 and after a reasonable time, it was disposed of on 31.03.2006 and the sale proceed was credited to his loan account in terms of the loan agreement.

(3.) Since huge amount was outstanding, the petitioner-bank issued a notice dated 27.11.2009 to the respondent No. 2 informing that Arbitration Proceeding would be initiated for recovery of the outstanding amounts. However, the respondent No. 2 failed to respond to the aforesaid notice. Thereafter, a notice dated 07.12.2009 was sent to respondent No. 2 by the sole Arbitrator calling upon the respondent No. 2 to appear in the arbitration proceedings.