SRIKANT JADHAV Vs. PUNJAB TRACTORS LTD

JUDGEMENT

(1.) Proceedings initiated upon the complaint instituted under Section 138 of the Negotiable Instruments Act vide order dated 29.09.2009 by the Court of Forest Magistrate, Srinagar, are contended to be without jurisdiction so abuse of process of law.

(2.) Punjab Tractors Ltd, a company registered under Companies Act, 1956 having its head office at Phase IV, Industrial Area Mohali (Punjab), has merged with Mahindra & Mahindra Limited. Said company (Mahindra & Mahindra Ltd.) has its registered office at Gateway Building, Apollo Bunder, Mumbai, Swaraj Division is one of its divisions and one of its places of business is at Dar-ul-Owais, Rajbagh Srinagar Kashmir. Petitioner No. 1 is proprietorship firm carrying on business of purchase and sale of Swaraj tractors and its spare parts and accessories whereas Petitioner No. 2 is the proprietor of the said firm so liable for the entire dealings of the said firm.

(3.) Petitioners had issued cheque bearing No. 0248568 dated 22.12.2008, drawn on Union Bank of India, Mehsana Gujarat branch for an amount of Rs. 80,00,000(Rupees eighty lacs) in favour of erstwhile company (Punjab tractors) towards payment of the dues. The said cheque was presented by the Respondent No. 1 with its banker (J & K Bank Ltd. Air Cargo Branch, Srinagar), same was forwarded by the drawee bank but was returned by the drawer bank (Union Bank of India, Mehsana Gujarat) with the remark ''No Account''. The drawee bank (J&K Bank) informed the Respondent accordingly, so in short dishonour of cheque. The Respondent No. 1 through its counsel issued notice of demand on 12.8.2009 from Srinagar which was replied by the Petitioners. Non payment of the cheque amount despite demand prompted the Respondents to file complaint under Section 138 of the Negotiable Instruments Act read with Section 420 RPC. Same has been filed by the company through its authorized representative Khurshid Ahmad Thakur in the court of Chief Judicial Magistrate, Srinagar and same has been assigned to the Court of Forest Magistrate, Srinagar who after recording statement of the complainant took the cognizance for commission of offence punishable under Section 138 of the Negotiable Instruments Act. Dissatisfied and aggrieved thereof, instant petition has been filed.