1. This Criminal Petition has been preferred by the petitioners (A1 to A8 in Crl.P.No.4976 of 2010) under Section 482 of the Code of Criminal Procedure, 1973 (Cr. P.C) to quash proceedings in C.C. No.95 of 2010 (C.C) on the file of the Court of I Additional Chief Metropolitan Magistrate, Hyderabad registered for offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (the Act) in respect of dishonour of a cheque.

2. Whereas the petitioners herein are A1 to A8 the second respondent herein is the complainant in the C.C., who for convenience, be referred to as they are arrayed in the C.C.

3. It is necessary to note briefly the version of the complainant for proper appreciation of the petition. It is as follows. By virtue of a lease agreement dated 15.11.2007 the complainant became the lessee of the premises of A1 to A8 admeasuring 13,056 Square feet in Survey Nos.240, 242 and 243 situated Opposite to Hanuman Temple, China Thokatta, New Bowenpally, Secunderabad, for three years on an agreed monthly rent of Rs.6,00,000/-and subject to deposit of Rs.30,00,000/-towards interest free refundable security deposit with A7 on behalf of all of them which was complied with by way of giving cheque No.295440 dated 21.11.2007 for Rs.5,00,000/-, cheque Nos.295459 to 295468 dated 27.11.2007 (ten cheques) for Rs.1,00,000/-each, cheque No.301207 dated 17.12.2007 for Rs.5,00,000/-, cheque No.301245 dated 17.12.2007 for Rs.5,00,000/-and cheque No.318908 dated 03.4.2008 for Rs.5,00,000/-drawn on HDFC Bank, Begumpet Branch, Hyderabad. It is claimed that as it was terminated by 30.11.2008 another lease agreement dated 15.11.2008 was entered into with effect from 01.12.2008 by reason of which the occupying capacity of the complainant-company was confined to 50 seats from 300 seats while keeping the rent at Rs.3,00,000/-only. It is further claimed that A7 used to act on behalf of all of them and accept the corresponding monthly rents deposited by the complainant by way of cheques from time to time at Rs.6,00,000/-and Rs.3,00,000/-per month as per the agreements dated 15.11.2007 and 15.11.2008 respectively. Further it is claimed that pursuant to entering into Memorandum of Association (MoU) dated 23.10.2009 between the complainant and A1 to A8 which was signed by A7 as the person authorized to do so on behalf of all of them it was agreed to hand over the premises to A1 to A8 by the end of 31.12.2009 and return/refund the agreed interest free security deposit of Rs.3,00,000/-after adjusting the actual rents paid in that behalf. Apart from that A1 to A8 also agreed to return two UPSs (60 KVA + 6 KVA both with batteries) valued at Rs.6,00,000/-belonging to the complainant for their own purpose by which the total amount agreed to be paid/returned to the complainant came upto Rs.36,00,000/-. In addition to that, the complainant agreed for deducting the rents payable for the months of September to December, 2009 at Rs.3,00,000/-per month following which the final amount to be paid to the complainant came at Rs.24,00,000/-. Further, it is claimed that in terms of clause 3 of the MoU, A7 representing A1 to A8 issued two cheques one bearing No.450993 dated 12.11.2009 for Rs.18,00,000/-drawn on Andhra Bank, Bowenpally Branch and the other cheque bearing No.060794 dated 15.11.2009 for Rs.6,00,000/-drawn on ING Vysya Bank Ltd., Bowenpally Branch, in discharge of the liability following which the complainant had handed over the vacant possession of the property to A1 to A8 by the end of December, 2009. Consequently the complainant presented the two cheques before its banker i.e., HDFC Bank vide Banker’s memo dated 17.11.2009 whereas from there the cheques were sent to the drawee Banks of A1 to A8 but they were returned with endorsement “Funds insufficient” together with intimation received by the Bank of the complainant. In consequence of that the complainant got issued statutory notice under Section 138 of the Act to A1 to A8 observing n