MAHAPLASTO LTD Vs. BHUSHAN STEELS AND STRIPS LTD

JUDGEMENT

(1.) By this common judgment both Criminal Misc. No. 310-M of 1996 and Criminal Misc. No. 307-M of 1996 can conveniently be disposed of together. The facts in both the criminal miscellaneous petitions basically are identical. Therefore, it would be sufficient if the basic facts in Criminal Misc. No. 310-M of 1996 are stated.

(2.) Bhushan Steels and Strips Ltd., Chandigarh had filed a criminal complaint against the petitioners with respect to the offence punishable under section 138 of the Negotiable Instruments Act, 1881 (hereinafter described as the Act) read with Banking Public Financial Institution and Negotiable Instruments Laws (Amendment) Act, 1988 besides Section 420 Indian Penal Code.

(3.) It was alleged that Vijay Dalmia is the Director of M/s. Mahaplasto Ltd., Calcutta. He had for valuable consideration and for clearing the outstanding payment due to M/s. Bhushan Matallics Ltd., a sister concern of M/s. Bhushan Steels and Strips Ltd. agreed vide letter of 17-7-1995 and had issued certain post-dated cheques. They were drawn at Allahabad Bank, Calcutta in favour of M/s. Bhushan Steels and Strips Ltd. The total amount of the cheques was Rs. 11,87,174/-. It was within an assurance that on presentation, the same shall be encashed. Thereafter, the petitioner to avoid the payment and advised the respondent M/s. Bhushan Steel and Strips Ltd. not to present the cheques on one pretext or the other. M/s. Bhushan Steel and Strips Ltd., however, under intimation to the petitioners presented the cheques for encashment through Punjab National Bank, Sector 28. The same were returned unpaid with the endorsement payment stopped by the drawer. It was asserted that petitioners with mala fide intention had stopped the payment with an object to withhold the payment of the cheques. In fad there were not sufficient funds in the accounts of the petitioners. A legal notice was served calling upon the petitioners to clear the outstanding amount, which was not cleared. The learned Chief Judicial Magistrate, Chandigarh after perusal of the preliminary evidence summoned the petitioners as accused for the offence punishable under Section 138 of the Negotiable Instruments Act. By virtue of the present petitions filed under Section 482 of the Code of Criminal Procedure petitioners seek quashing of the orders passed by the Chief Judicial Magistrate, Chandigarh dated 4-11-1995. It is claimed that no case was drawn against the petitioners in the complaint. Respondent had no locus standi to file the complaint. The petitioners had no business transactions with the respondent. The cheques were not issued in discharge of any debt or liability. The cheques were not returned for insufficiency of funds but were returned for payment having been stopped by the drawer. This will not attract the strict provisions of Section 138 of the Negotiable Instruments Act. The cheques were issued as security and were not meant to be presented.