( 1 ) THIS is an application filed under Section 482, Cr. P. C. to quash the proceedings in C. C. No. 63/94 on the file of the VII Addl. Munsiff Magistrate court, Guntur.

( 2 ) THE facts in brief are as follows: the 1st respondent herein is a registered Company selling Glycerine through its depot at Bombay. The 1st petitioner is the firm, and 2nd petitioner is its proprietor and they are having dealings with the 1st respondent in purchasing the Glycerine. With respect to the amount due to the 1st respondent, the petitioners herein issued three cheques bearing Nos. 1. CHEQUE No. 457230, dated 30-11-93 for rs. 50,000/- 2. Cheque No. 457231, dated 7-12-93 for rs. 1,00,000/-

( 3 ) CHEQUE No. 457232, dated 15-12-93 for rs. 1,00,000/- rs. 2,50,000/- the said cheques were issued towards part payment of the debt due to the 1st respondent on the Union Bank of India, Bombay. The said cheques were presented to the Union Bank of India through the Andhra Bank Main Branch, guntur for encashment. But the said cheques were dishonoured by the Union bank of India, with an endorsement "sales Tax Notice" and the same was intimated to the 1st respondent by the Andhra Bank through its letter, dated 3-3-94. The 1st respondent, thereupon, issued a registered notice through his advocate on 17-3-1994 to the petitioners herein demanding payment of the amounts coveredby the cheques. In spite of the saidnotice, the petitioners failed to pay the amount. Hence, the 1st respondent filed the complaint in C. C. No. 63/94 against these petitioners for the offence punishable under sections 138 and 142 of the Negotiable Instruments Act. 3. It may also be stated here that the petitioners-accused filed Crl. M. P. No. 1256/96 before the trial Court for their discharge on the ground that they could not make the payment because their bank account was attached by the sales Tax Authorities and as there was no fraudulent intention on their part. That petition was contested by the 1st respondent-complainant. The learned magistrate by his order, dated 26-11-1996, dismissed that application. Thereafter, the petitioners-accused have come up with this application under section 482, Cr. P. C. to quash the said proceedings.

( 4 ) HEARD the learned Counsel on either side.

( 5 ) THE learned Counsel for the petitioners raised the contention that the three cheques issued by the petitioners could not be honoured by their Bank as the amount existing to their credit was attachedby the Sales Tax Authorities and the bank also informed this fact while returning the cheques. The learned Counsel further contends that the petitioners also informed the 1st respondent by their letter, dated 25-1-1994 about the attachment of their account by the Sales Tax authorities and requested not to utilise the cheques until further notice and thus, there is no mala fide intention on the part of the petitioners in issuing the cheques and as such, no offence under Section 138 of the Negotiable Instrument act is made out. The learned Counsel for the petitioners also relied on the decision in "m/s. Sri Manufacturing Company Ltd. Hyderabad rep. by its commercial Manager Mr. Murakhar vs. Dinesh Gupta and others. The learned counsel for the 1st respondent, on the other hand, submits that there were no funds to the credit of the account of the petitioners in the bank and in collusion with the bank authorities, an endorsement to the effect that "sales Tax Notice" was made while returning the cheques and that in spite of the notice issued subsequent to the return of the cheques, the petitioners failed to make the payment and as such, the dishonest intention on the part of the petitioners is crystal clear and therefore, the petitioners are liable for punishment under section 138 of the Negotiable Instrument Act and the proceedings cannot be quashed under Section 482, Cr. P. C. at this stage, and that there is no abuse of process of the Court.

( 6 ) FOR proper appreciation of the rival contentions of