MAHENDRA PRASAD Vs. STATE OF BIHAR

JUDGEMENT

(1.) This application by the petitioner has been filed for quashing the order dated 4-11-2004 passed by Sri S. B. Prasad Singh. Judicial Magistrate. Gaya, in Complaint Case No. 317 of 1997 rejecting the prayer of petitioner to discharge him and for quashing entire criminal proceeding of the case.

(2.) Brief facts of the case are that opposite party No. 2 Rajendra Prasad Shah, Branch Manager, Magadh Branch. Bihar State Financial Corporation, Gaya (For short BSFC) filed complaint which was numbered as Complaint Case No. 317 of 1997 against the petitioner, his father and his brother alleging therein that Anant Ram, father of petitioner is Managing Director of Shree Bishnu Roller Flour and Oil Mill Pvt. Ltd. Gaya and petitioner and his brother Brijendra Prasad are the directors of the aforesaid Mill and a term loan of Rs. 56.50 Lacs was given by BSFC to accused persons in the name of third Mill and the amount of loan was to be repaid with interest and other expenditures in due installments but the Mill of the accused persons defaulted in payment of premium in due time and the amount with interest was to the tune of Rs. 1,02,29,430.51 as on 28-2-1997, in spite of demand made by the BSFC. Notices were duly served on accused persons but they did not pay any heed to the demand and the complainant ultimately wrote a letter to the District Manager, Food Corporation of India, Gaya to stop supply of wheat to the Mill of the accused persons. The further case is that on 18-12-1996 at 11.30 AM the petitioner along with his father and brother came to the office of the complainant and assured the complainant that they were ready to make payment of Rs. 1,50,005/- in favour of the BSFC for which they issued three post dated cheques which were payable from their account in Punjab National Bank, Tekari Road, Gaya and they further said that they would make provision for payment from the bank in time for honouring of the said cheques and requested the complainant to direct the District Manager, Food Corporation of India to resume supply of wheat to the Mill of accused persons. The complainant believing their assurances agreed to receive post dated cheques by way of part payments and wrote letter to the District Manager, Food Corporation of India to supply wheat to the Mill of the accused persons. Anant Ram, father of the petitioner signed three post dated cheques each of Rs. 50,000/-dated 30-12-1996, 15-1-1997 and 25-1-1997. When the cheque No. 686367 dated 30-12-1996 was presented for encashment it was dishonoured and returned with bankers remark "insufficient fund" but after great persuasion the accused persons replaced the same by bank draft on 14-2-1997. Thereafter accused persons made request to the complainant through letter dated 10-1-1997 to present the remaining two cheques in the last week of February, 1997 and accordingly when complainant presented those two cheques on 28-2-1997, both cheques were dishonoured and returned to complainant on 5-3-1997 with bankers remark "insufficient fund". There after the complainant sent notice to the accused persons for payment of amount of two dishonoured cheques but neither payment was made nor any reply was given by the accused persons. The complainant then filed the complaint case against the petitioner and his father and brother under Section 420 IPC.

(3.) The petitioner had filed Cr. Misc. No. 7447 of 1998 before this Court under Section 482 Cr. P. C. for quashing entire criminal proceeding including the order dated 25-10-1997, by which cognizance of the case was taken under Section 420 IPC. This application was dismissed (Annexure-2).