PUNJAB NATIONAL BANK Vs. HIMGIRI TRADERS

JUDGEMENT

(1.) THIS petition, for the grant of special leave to appeal, has been filed by the complainant, namely Punjab National Bank, challenging the order dated 4. 5. 2002, passed by the Judicial Magistrate, dismissing the criminal complaint and acquitting the accused respondents of the charge under Section 138 of the Negotiable Instruments Act (hereinafter referred to as the Act ).

(2.) THE facts, which are relevant for the decision of the present petition, are the accused-respondents had issued two cheques of Rs. 2. 50 lakhs each on 26. 12. 1998 and 28. 12. 1998 respectively in favour, of M/s. Guru nanak Paper Mills. Said M/s. Guru Nanak Paper Mills deposited those cheques with the complainant Bank and the complainant Bank purchased those cheques and gave minimum credit to M/s. Guru Nanak Paper Mills. When those cheques were sent to the drawee Bank for encashment, those cheques were received back unpaid being dishonoured on 11. 1. 1999 with the remarks "stop payment". Upon this, the complainant Bank issued notices to the accused-respondents and sjnce the accused-respondents failed to make the payment of those cheques to the complainant Bank inspite of those notices, the complainant Bank filed criminal complaint under Section 138 of the Act against the accused-respondents. In the said criminal complaint, it was alleged by the complainant Bank that it had sanctioned various credit facilities in favour of M/s. Guru Nanak Paper mills, including the facility of bill discounting and that under this facility, the complainant Bank used to give minimum credit of the amount of the said cheque to the said party and under those circumstances, the complainant Bank used to became holder of those cheques "in due course" and became legally entitled to the said cheques and as such, the complainant Bank was entitled to file the criminal complaint against the accused-respondents.

(3.) AFTER recording preliminary evidence, the learned Magistrate summoned the accused respondents for the offence under Section 138 of the Act. After the accused had appeared, the learned Magistrate served notice of accusation upon the accused-respondents, to which the accused pleaded not guilty and claimed to be tried. Thereafter, the complainant bank produced its evidence. In the statement under Section 313 Cr. RC. , the accused denied the allegations against them and stated that they had been falsely implicated in this case. The accused examined their defence evidence.