AJAY GUPTA Vs. AJAY TRADING CO.

JUDGEMENT

(1.) The respondent filed a complaint under Sec. 138 Negotiable Instruments Act (hereinafter to be referred as 'the NI Act') against the petitioner by asserting that it is a partnership firm dealing with finance, loan, auction group and committee business etc. It is averred in the complaint that the petitioner was having a business relationship with the respondent, as such, he approached the respondent for financial support and the respondent gave him some amount. In order to discharge his part liability, the petitioner issued a cheque bearing No. 073991 dtd. 29/1/2022 for an amount of Rs.20.00 lacs in favour of respondent but the same was dishonored vide memo dtd. 31/1/2022 for 'Funds Insufficient'.

(2.) The respondent through its counsel served a legal notice on 18/2/2022 through registered post calling upon the petitioner to pay the amount of dishonored cheque within a period of 15 days from the date of receipt of notice. The said notice was received by the petitioner on 24/2/2022 but he did not pay the amount of the dishonored cheque within the period of 15 days. Thereafter, the respondent filed a complaint under Sec. 138 NI Act, before the learned Chief Judicial Magistrate, Jammu which was assigned to the court of learned Special Railway Magistrate Jammu (hereinafter to be referred as 'the trial court') and the process was issued against the petitioner vide order dtd. 18/4/2022.

(3.) The petitioner has filed the present petition for quashing of the proceedings of the complaint, titled, 'Ajay Trading Company vs Ajay Gupta' pending before the learned trial court on the following grounds: