RATTAN LAL Vs. RAMAN SHARMA

JUDGEMENT

(1.) In the instant petition filed under Section 561-A. Cr. P.C., petitioner seeks quashment of order passed by the learned Sub-Judge (Special Railway Magistrate), Jammu, dated 26.7.2010 by virtue of which learned trial magistrate has issued process against the petitioner under Section 138 of Negotiable Instruments Act as also seeking quashment of proceedings pending before the trial court.

(2.) Facts which have arisen for disposal of this petition are detailed out as under: Complainant/respondent filed complaint under Section 138 of Negotiable Instruments Act, alleging therein that an amount of Rs. 9 lac stood outstanding against the petitioner and in order to liquidate the said liability, the petitioner herein issued cheque bearing No. 243739, dated 31.12.2009 in favour of the respondent and on presenting the cheque, the same stood returned by the bank of the petitioner with memo having remarks "Funds Insufficient". It is further submitted that complainant/respondent served notice on the petitioner and in-spite of receipt of notice, the petitioner failed to pay amount of cheque i.e Rs. 9 lacs to the respondent, therefore, complaint. After recording preliminary statement of the petitioner, the learned trial magistrate in terms of order passed on 26.7.2010 took cognizance of the complaint under Section 138 of Negotiable Instruments Act holding that there is sufficient material on record to proceed against the petitioner. Petitioner has challenged order of the trial magistrate regarding issuance of process and also taking of cognizance in the matter on the grounds detailed out as under:

(3.) On notice, respondent appeared and represented by counsel.