PINNACLE PROJECTS Vs. STATE OF TELANGANA

JUDGEMENT

(1.) This application is filed under Section 482 of Cr.P.C., to quash the proceedings in C.C.No.141 of 2016 on the file of the II Special Metropolitan Magistrate, Cyberabad at Kukatpally. The petitioners herein are accused Nos.1 and 2 in the above said case. The offence alleged against the petitioners is under Section 138 of the Negotiable Instruments Act, 1881.

(2.) Heard learned counsel for the petitioners and learned Public Prosecutor. Perused the record.

(3.) Learned counsel for the petitioners would submit that the petitioners have issued the cheques in question towards collateral security and not towards legally enforceable debt, and as such, there is no legally enforceable debt. He has also referred to the agreement dated 19.08.2015 entered between the petitioners and the second respondent. In the said agreement, it is mentioned that the said cheques were issued in favour of the second respondent by the petitioners herein as collateral security for the amount borrowed from the second respondent and the petitioners have also executed two promissory notes towards collateral security.