SANJAY DIESELS Vs. MIR ENGINEERS & BUILDERS

JUDGEMENT

(1.) QUASHMENT of the complaint filed by the respondents under Section 138 of Negotiable Instruments Act [for short hereinafter referred to as "N.I.ACT"] and the cognizance taken thereof by the Court of learned Chief Judicial Magistrate, Kathua on 29th of April 2008 is sought.

(2.) RESPONDENT (Complainant) being the dealer of 'Greaves Cotton Generator Sets was required as per the order placed by the petitioner to supply 54 Diesel Generator Sets of 6 KVA and 27 Diesel Generator Sets of 15 KVA, costs of which is Rs. 1,63,35,000/ -. According to respondent (complainant) 54 D.G. Sets of 6 KVA of the value of Rs. 88,02,000/ - were supplied to the petitioner and 27 D.G. Sets of 15 KVA of the value of Rs. 75,33,000/ - were lying ready for dispatch to the respondents. The Cheque bearing No. 1945601 dated 17th of September 2007 for sum of Rs. 73,35,000/ - (Rupees Seventy three lacs thirty five thousands only) drawn at the Jammu and Kashmir Bank Ltd; Rawalpora, District Budgam, on presentation was returned unpaid by the Banker of the petitioner with the remarks "Payment stopped by the Drawer." Dishonoured Cheque along with memo was received by the respondents from its Banker i.e. Jammu and Kashmir Ltd. Govindsar, Kathua. After service of requisite notice respondents filed the complaint under Section 138 of N.I.ACT. Learned Chief Judicial Magistrate, Kathua took cognizance vide order dated 29th of April 2008.

(3.) FROM the records what emerges is that order for supply has been placed on 5th of August 2007. Copy of the Email dated 13th of September 2007 placed on the record reveals that the respondents after referring to telephonic and personal discussions, has requested the petitioner to send the following payments at the earliest: i) One Cheque in favour of M/s Sanjay Diesels for 45 no. of D.G. sets for security purposes (from the Bank account of M/s Engineers & Builders) for Rs. 73.35 Lacs; ii) One Demand Draft for Rs. 35 to 40 Lacs as part payment against the first lot of the D.G. sets payable at Delhi in favour of M/s Sanjay Diesels.