LAJU CHANDUMAL CHANRAI Vs. STATE OF JHARKHAND

JUDGEMENT

(1.) Since both the applications arise out of the same case, it were heard together and are being disposed of by this common order.

(2.) The petitioners of both the applications have invoked extraordinary jurisdiction of this Court under Article 226 of the Constitution of India seeking quashment of the entire criminal proceeding of complaint case bearing C-1 No. 777 of 2004, pending in the court of Judicial Magistrate, 1st class, Jamshedpur including the order dated 25-1- 2005 where under cognizance of the offences under section 420 of the Indian Penal Code and also under section 138 of the Negotiable Instruments Act has been taken against the petitioners.

(3.) The facts giving rise these applications are that the complainant M/s. Joy Commercial Pvt. Ltd. incorporated under the Companies Act on execution of an agreement in between the complainant-company and the accused company (M/s. Shamken Multifab Limited) advanced a loan of Rs. 30 lacs on 21-9-2002 on interest payable @ 22% per annum with further stipulation that in the event of default by the accused, penal interest @ 6% was payable by the accused in addition to interest of 22% and for that M/s. Archit Holdings and Credits Ltd. stood as guarantor. When accused defaulted in liquidating the loan amount within the time, a promissory note in favour of the complainant was executed on demand on 16-2-2003 promising therein that the amount would be returned within 60 days but only part of the money was paid and as such a sum of Rs. 27,80,586/- remained outstanding payable by the accused company to the complainant. However, on repeated demands, accused company issued a cheque in favour of the complainant company on 27-12-2003 of Rs. 20 lacs drawn on Standard Chartered Bank, Basant Lok, New Delhi with an assurance that cheque on its presentation would be honoured. But contrary to the assurance given by the accused company, when cheque was presented before the Bank, it got dishonoured on the ground that one of the joint signatories of the cheque is not lawfully authorized to sign cheque on behalf of the accused company. Thereafter, Lawyer's notice dated 15-6-2004 was sent to the accused company but in spite of receiving the same, the accused company did not come forward to pay the outstanding dues and thereby they committed offence of breach of trust and also committed offence under section 138 of the Negotiable Instruments Act. Upon the said complaint, cognizance of the offence under section 420 of the Indian Penal Code as well as under section 138 of the Negotiable Instruments Act was taken.