EM BEE TEXTILES LTD Vs. SADHU RAM

JUDGEMENT

(1.) M/s. Embee Textiles Limited, Karor Road, Tamil, Nadu and its Managing Director K.V. Kupu Swamy filed the present petition under Section 482 of the Code of Criminal Procedure for quashing the complaint dated 28.11.199 1 (Annexure P16) and further proceedings in pursuance thereof, pending in the Court of Chief Judicial Magistrate, Bhatinda.

(2.) Complaint Annexure P/6 under Section 138 read with Section 142 of the Negotiable Instruments Act (the Act for brevity) was filed by Sadhu Ram and Company against the present petitioners on the allegations that M/s. Embee Textiles Limited had been transacting business of purchase of cotton through the ,complainant firm and owed huge amounts running into many lacs of rupees to the firm. In payment of part of its debts Managing Director of M/s. Embee. Textiles Limited issued three cheques No. OSM-415151 dated 10.4.1991 for Rs. 1,02,219.17 OSM-415152 dated 19.4.1991 for Rs. 1,03,156.16 and OSM-415153 dated 29.4. 1991 for Rs. 1,03,106.84, to be drawn on Punjab National Bank, Coimbatore. These cheques were presented for collection of amount through Punjab National Bank, Arya Samaj Chowk, Bhatinda Branch, but were returned by the bankers of Petitioner No. 1 with the remarks that Payment stopped by drawer. Intimation relating to the dishonour of the cheques was received by the complainant on 15.10.1991. Within a period of 15 days of the receipt of the information relating to the return of the cheques as unpaid, a registered notice was sent to the petitioners bringing to their knowledge that the cheques had been dishonoured and they were asked to make payment within 30 days of the receipt of the notice but no payment was made.

(3.) The petitioners pleaded that petitioner No. 1 had been purchasing cotton from the respondent for about a year and issued 56 cheques in that connection out of which 9 cheques were encashed, 26 cheques were returned to M/s. Embee Textiles while 21 cheques were retained by the respondent which included the three cheques in question. The respondent filed eight complaints against the petitioners in the Coon of Chief Judicial Magistrate, Bhatinda between 17.1.1991 to 13.6.1991 on the ground that 21 cheques had been dishonoured. Thereafter the amount due to the respondent was calculated and was found to be Rs. 29,92,920.75 including interest upto 15.8.1991. Some amount was also found due to Asian Engineers and Indian Card Clothing Company, bringing the total to Rs. 33,58,553.54. On 3.9.199 1 a draft for Rs. 30 lacs was given to the respondent vide letter dated 27.8.1991 and in response thereof all 8 pending cases pertaining to 21 cheques were withdrawn. The respondent acknowledged the receipt of Rs. 30 lacs and agreed to return 21 cheques as per letter dated 3.9.1991 including the cheques in question. The three cheques mentioned in the complaint by the respondent were issued on 24.12.1990 and were dated 10.4.1991 and were part of the amount covered by payment of Rs. 30 lacs and no amount remained due to the respondent after payment of Rs. 30 lacs. The petitioners instructed their bankers not to make payment against 21 cheques that were with the respondent, but with malafide intention the respondent presented three cheques even though the respondent was well aware of the fact that these cheques were to be returned to the petitioners in accordance with the agreement. In these circumstances the complaint was filed with a view to extract payment not legally due from the petitioners by offering threat and about of process of Court. Moreover, the cheques were not dishonoured due to any of the grounds stated in Section 138 of the Act i.e. insufficiency of funds or due to the amount exceeding the amount arranged to be paid from the account and no grounds for an offence were made out