DEBI PRASAD MISHRA Vs. BALUJA FOREX PRIVATE LIMITED

JUDGEMENT

(1.) The petitioners have approached this Court praying for quashing of complaint filed against them under Sections 138/141/142 of the Negotiable Instruments Act, 1881 (for short, 'the Act') and the summoning order dated 29.10.2004 passed by the learned Judicial Magistrate First Class summoning the petitioners to face trial under Section 138 of the Act.

(2.) BRIEFLY , the facts as stated in the petition are that the petitioners were directors in a Company, namely, M/s Shrey Forex Limited and others (for short, 'the Company'). The company was dealing with foreign currencies and traveller cheques under licence from Reserve Bank of India. The Company though was licensed to open and operate upto a maximum of eight branches but it opened only one office at New Delhi. The petitioners, who were known to late Mr. Bhairav Chandra Mahanti, father of Mr. Sabyasachi Mahanti, Chairman of the Company for many years and some being his close relatives joined as directors of the Company on the request by Mr. Sabyasachi Mahanti with clear understanding that they were not to be involved in day-to-day affairs in the Company and their role would be limited to attend Board meetings. They were not to be paid any salary or remuneration as they were honorary, non-working directors. All the petitioners are based at different places in the State of Orissa. The complaint came to be filed on account of dishonour of two cheques drawn on Bank of Punjab Limited bearing No. 055444 dated 6.8.2004 for Rs. 3,71,600/- and bearing No. 032177 dated 9.8.2004 for Rs. 2,32,500/-. The cheques were signed by Chairman of the Company, namely, Sabyasachi Mahanti. The same were returned uncleared with the remark "Insufficiency of Funds". The petitioners came to know about the dishonour of cheques only when they received legal notice dated 31.8.2004 from the counsel for the complainant. The same was duly replied to on 25.9.2004.

(3.) RELIANCE has been placed upon S.M.S. Pharmaceuticals Ltd. v. Neeta Bhalla and another, 2005(4) RCR(Criminal) 141 : 2005(3) Apex Criminal 229 : AIR 2005 SC 3512; Katta Sujatha (SMT) v. Fertilizers and Chemicals Travancore Ltd. and another, 2002(4) RCR(Criminal) 502 : (2002)7 SCC 655 and Monaben Ketanbhai Shah and another v. State of Gujarat and others, 2004(3) RCR(Criminal) 800 : 2004(3) Apex Criminal 344 : (2004)7 SCC 15.