GURBACHAN JUNEJA Vs. STATE OF PUNJAB

JUDGEMENT

(1.) THE petitioners, directors of Krishna Engineering Private Limited, Focal Point, Jalandhar (hereinafter referred to as 'Company') have invoked the jurisdiction of this Court under Section 482 of the Code of Criminal Procedure (in short 'the Cr.P.C.') for quashing FIR No. 143 dated 02.08.2012 punishable under Section 420 of the Indian Penal Code (in short 'IPC') registered at Police Station Division No. 8, Jalandhar and proceedings emanating therefrom.

(2.) THE brief backdrop of this case is that the company obtained an interest free loan of Rs. 13,45,700/ - from the Department of Industries, State of Punjab. The loan was repayable in three equal installments on 25.06.1996, 25.06.1997 and 25.06.1998. The company issued cheque bearing No. 001242 dated 30.06.2012 for an amount of Rs. 1 lac in the name of General Manager, District Industrial Centre to the District Collector, Jalandhar which got dishonoured with remarks 'Opening Balance Insufficient'. The cheque was again presented but returned with the same remarks.

(3.) COUNSEL for the respondent, on the other hand, contends that the company and its Directors failed to make any payment on the dates fixed for repayment of the loan amount in three equal installments in the year 1996, 1997 and 1998. The company issued eleven cheques, detailed in para 6 of the reply by way of affidavit of Bhinder Singh, General Manager, District Industries Centre, Jalandhar on behalf of respondent No. 2 and the first four cheques in the year 2006 got dishonoured with the remarks 'exceeds arrangement' and the remaining seven cheques issued in the year 2012 and 2013 got dishonoured with the remarks 'Opening Balance Insufficient'. In the year 2009, the department announced a scheme known as 'One Time Settlement Scheme' for defaulters to pay interest free loan on payment of principal amount in lump sum by the stipulated date in order to get waiver of penal interest. The petitioner issued cheque in the sum of Rs. 1 lac in favour of the respondent which also got dishonoured. It is further argued that liability of interest free loan towards principal is Rs. 5,97,782/ - and the company is liable to pay interest amounting to Rs. 32,07,581/ - being outstanding as on 31.08.2013. It is argued with vehemence that keeping in view the conduct of the company and its directors that a large number of cheques were issued from time to time but the same got dishonoured on presentation to the bank, it clearly indicates dishonest intention of the petitioner since the inception of transaction constituting offence punishable under Section 420 IPC. It is further argued that the petitioners cannot escape their criminal liability by taking the plea that some proceedings are pending before BIFR. In addition, it is submitted that the issue regarding intention of the petitioner being deceitful can be decided only during course of trial by leading evidence, therefore, the petitioners are not entitled to indulgence of this Court seeking quashing of criminal proceedings who are guilty of causing loss to the State Exchequer.