BALAJI VENKATAPPA Vs. STATE OF TELANGANA

JUDGEMENT

(1.) The petitioners, who are accused Nos.3 to 6 in C.C.No.563 of 2018 on the file of the VIII Special Magistrate, Miyapur, filed this Criminal Petition under Section 482 Cr.P.C. to quash the proceedings in the above C.C.

(2.) The brief facts of the case are that the second respondent herein filed a private complaint against accused Nos.1 to 6 for an offence punishable under Section 138 of the Negotiable Instruments Act, 1881, alleging that accused No.1 company represented by the petitioners along with accused No.2 issued cheque bearing No. 000430 dated 05.10.2017 for Rs.5,00,000/- drawn on Karur Vysya Bank Limited, A.S.Rao Nagar Branch, Hyderabad, in discharge of its legally enforceable debt. When the said cheque was presented by the second respondent in its banker H.D.F.C. Bank Limited, Balanagar Branch, Ranga Reddy District, the same was returned with an endorsement "Payment stopped by Drawer" vide cheque return memo, dated 07.11.2017 and thereafter a notice was issued calling upon the accused to pay the cheque amount within the stipulated time. Even after receipt of notice, the petitioners and other accused neither paid the amount nor issued any reply. The petitioners arrayed as accused Nos. 3, 4, 5 and 6 on the sole ground that they are Additional Directors of accused No.1 company.

(3.) A counter-affidavit came to be filed by the second respondent/de facto complainant stating that the second respondent had supplied the goods as demanded by the accused in good faith and raised taxable invoices for supply of materials and demanded payments and to clear the said legally enforceable debt the accused had issued the subject cheque, which was returned un-paid. It is also stated that though the petitioners are not signatories to the dishonoured cheque, but they are vicariously liable for the business done with the second respondent since the transactions took place when the petitioners were on record as Additional Directors of accused No.1 Company.