LAWS(P&H)-2015-2-156

AMANDEEP RICE MILL GRAM UDYOG SAMITI Vs. PUNJAB STATE COOPERATIVE SUPPLY AND MARKETING FEDERATION LIMITED

Decided On February 23, 2015
Amandeep Rice Mill Gram Udyog Samiti Appellant
V/S
Punjab State Cooperative Supply And Marketing Federation Limited Respondents

JUDGEMENT

(1.) This order shall dispose of Crl.Misc. No.M-5379 of 2015 (M/s Amandeep Rice Mill Gram Udyog Samiti v. Punjab State Cooperative Supply and Marketing Federation Limited) and Crl.Misc. No.M-5432 of 2015 (M/s Amandeep Rice Mill Gram Udyog Samiti v. Punjab State Cooperative Supply and Marketing Federation Limited).

(2.) Brief facts of the case are that, petitioner-Rice Mill has entered into an agreement with the complainant - Corporation for milling and supply of rice to the Food Corporation of India. Complainant supplied 2,92,507 bags of fine quality paddy weighing 1,02,362.445 for the year 2012-13 to the petitioner-Rice Mill. Petitioner was required to supply the entire paddy after milling upto 18.01.2014. Physical verification of the premises was conducted on 20.01.2014. A shortage of 1,18,084 bags of paddy was detected and an amount of Rs. 8,17,55,840/- was found due towards the petitioner. The cheques in question were issued in discharge of the liability as mentioned above. The cheques were dated 05.02.2013, 15.02.2013, 25.02.2014, 15.03.2014 and 25.03.2014. On specific instructions of the petitioner, the cheques were presented to the Bank for encashment but they were dishonoured with the remarks "Exceeds arrangement". Legal notice had been duly sent which was neither replied nor the payment was made. Hence, the present complaint has been filed.

(3.) Learned counsel for the petitioner submits that entire proceedings including complaints and summoning orders as well as order dated 06.01.2015 passed by the learned Additional Sessions Judge, Fatehgarh Sahib deserve to be set aside because it is a matter of record that all the six cheques in question were issued as security. Thus were not meant to be encashed on the day they were issued. Hence, offence under Section 138 of the Act is not made out in this case. He relies upon the decision of Hon'ble Supreme Court in M/s Indus Airways Pvt. Ltd. and others v. M/s Magnum Aviation Pvt. Ltd. and another, 2014 2 RCR(Cri) 494.