CREATOR Vs. KULDEEP SINGH CHEEMA

JUDGEMENT

(1.) CHALLENGE is to the judgment dated 15.02.2002 passed by the Judicial Magistrate, Ist Class, Chandigarh, whereby accused -respondent has been acquitted of the offence under Section 138 of the Negotiable Instruments Act.

(2.) M /s The Creators -complainant, being Architect, offers services in the field of architectural designs, drawings, site survey, cost estimates etc. Respondent approached the complainant firm for preparing project report for a tourist resort at Una (Himachal Pradesh). Accordingly, the complainant prepared a project report. In order to discharge his liability, the accusedrespondent issued a cheque bearing No.0899659 dated 15.11.1998 for a sum of Rs.2,50,000/ - in favour of the applicant -complainant. However, on presentation, the said cheque was dishonoured vide memo dated 22.01.1999 with the remarks insufficient balance in the account of the accusedrespondent. Thereafter, the appellant -complainant served a legal notice dated 10.02.1999, calling upon the accused -respondent to make payment of the cheque amount. But, the accused -respondents failed to make the payment. Hence, the complaint.

(3.) AFTER conclusion of the trial, vide impugned judgment dated 15.02.2002, the trial Court dismissed the complaint filed by the complainantappellant on the ground of maintainability. The trial Court has held that the complaint has been filed by the proprietorship firm in its own name, which is not competent to file the same, as proprietorship concern has no legal liability. The proprietorship firm cannot enforce its claim by way of civil suit and cannot file complaint under Section 138 of N.I. Act. Reference was made to the judgments delivered by the Madras High Court in B. Adarsh Rao Vs. M/s Tamil Nadu Electricals, Judgments on Dishonour of cheques 402 (Madras) and U.C. Saxena Vs. Madan Mohan, 1993 3 RCR(Cri) 391. Heard.