ATUL KOHLI Vs. STATE OF PUNJAB

JUDGEMENT

(1.) In this petition under Section 482 of the Code of Criminal Procedure, prayer has been made for quashing the complaint No. 77/2 dated February 13, 2000, under Section 138 of the Negotiable Instruments Act, titled as Raghbir Singh v. Indya Consumer Products Ltd. pending in the Court of Judicial Magistrate 1st Class, Ludhiana, as well the summoning order dated February 19, 2004, a copy of which has been appended as Annexure P2.

(2.) The quashing of the aforementioned complaint and the summoning order is sought on the ground that the cheque which has been dishonoured was signed by one Dinesh Khosla (accused No. 2 in the complaint) on June 25, 2003, for a sum of Rs. 3 lakhs whereas the petitioners in fact had ceased to be the directors of the company with effect from May 18, 2003. In support of this submission reliance has been placed upon the proceedings of the meeting of the Board of Directors stated to be held on May 18, 2003 (Annexure P3)in which it is referred to that the petitioners allegedly expressed their desire to quit from the Board of Directors due to their pre-occupation and their resignations were accepted and they were relieved with effect from the said date.

(3.) Notice of motion was issued and further proceedings were stayed. In response thereto reply on behalf of respondent No. 2 complaint had been filed. Learned Counsel for respondent No. 2 vehemently contends that the change in the Board of Directors of the company vide resolution dated May 18, 2003 (Annexure P3), whereby it is claimed that the petitioners ceased to continue as directors of the company was conveyed to the Registrar of Companies in Form No. 32 as prescribed according to Section 303(2) of the Companies Act, 1956, on July 16, 2003, only whereas it was required to be communicated immediately. It was during the interregnum that the cheque in question dated June 23, 2003, was issued on behalf of the company which having been dishonoured led to the filing of the complaint in question.