JASMIN B SHAH Vs. STATE OF JHARKHAND

JUDGEMENT

(1.) This application under Section 482 of the Code of Criminal Procedure has been filed for quashing the entire criminal proceeding including the order dated 7-7-2001 whereby and whereunder the learned Chief Judicial Magistrate Jamshedpur took cognizance of the offence under Section 138 of the Negotiable Instruments Act.

(2.) The prosecution case as alleged is that the complainant is the broker of Indo Shares and Pin Trade Ltd. Mumbai who is the member of Mumbai Stock Exchange and he was dealing in shares on line trading of shares by the G. Set (Computer Bolt) provided by Mumbai Stock Exchange after depositing the security with the accused company. It is further alleged that due to some reasons membership of accused company was terminated by the Stock Exchange which compelled the complainant to file a claim of Rs. 5,56,555.70 before the Arbitration Committee Stock Exchange Mumbai being Ref. No. 105 of 2000. A compromise was arrived at in between the parties and the accused Company agreed to settle the matter on payment of total sum of Rs. 4,58,894.07 ps. and accordingly the petitioner Company issued five post dated cheques of different dates in favour of the complainant but on submission of the cheques, it could not be encashed rather it was returned unpaid with remark fund insufficient" Thereafter, the complainant issued legal notice to the accused for payment of the amount but the same has not been paid Accordingly, the FIR was lodged.

(3.) Some witnesses were examined during enquiry under Section 202 of the Code of Criminal Procedure and the CJM after finding prima facie case took cognizance for the offence under Section 138 of the Negotiable Instruments Act.