SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Article Pause Article
judgment-img

2018 Supreme(AP) 20

IN THE HIGH COURT OF JUDICATURE AT HYDERABAD FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH
GUDISEVA SHYAM PRASAD, J.
P. Rama Mohana Rao – Appellant
Vs.
M/s Vijaya Adithya Agro Biotech Pvt. Ltd. and another - Respondents
CRIMINAL PETITION No. 3709 of 2011
Decided on : 29-01-2018

Advocates:
Advocate Appeared:
For the Appellant : T. Rama Koteswar Rao
For the Respondents: Nuthalapati Krishna Murthy

Headnote:

Criminal Procedure Code, 1973 - Section 200 and 482 - Negotiable Instruments Act, 1881 - Sections 138 and 142 - Dishonored of Cheque - Seeking quash of proceedings - Complainant accepted proposal - Vehicles on different invoices, and also maintained a Khata in the name of the accused - Various dates but they failed to make payment – Compl Complainant presented the cheque - Encashment, but the cheque was returned - Memo Funds Insufficient - Complainant informed the accused about the return of cheque - Funds in the account of the accused - Accused kept silent and did not make the payment - Complainant got issued a legal notice to the accused demanding them to make the payment due, but they did not respond and did not pay the amount. Therefore complainant filed a private complaint - The next contention of learned counsel for the petitioners relates to non liability of petitioners Nos. 2 to 4 for an offence under section 138 of the Act in respect of a cheque drawn by the first petitioner. Though ex facie there appears to be force in the contention of learned counsel for the petitioners, on deeper examination, I find force in the contention of learned counsel for respondents Nos. 2 to 4 that since the dishonored cheque was issued by the first petitioner as karta of the HUF, petitioners Nos. 2 to 4, being the sons of the first petitioner and members of HUF, in view of the Explanation to section 141 of Act, like directors of a company, can be made liable for the offence under section 138 of the Act. In the notice got issued by the petitioners through their counsel they clearly admitted that all of them have entered into an agreement to purchase the property of respondents Nos. 2 to 4. So, it is clear that they also have a role to play in the sale transaction and so prima facie they also would be liable for the offence under section 138 of the Act, if the cheque issued by the karta of the HUF is dishonoured - Criminal petition is allowed.

ORDER:

This criminal petition is filed under Section 482 of Cr.P.C., by the petitioner/A1 seeking to quash the proceedings against him in C.C.No.208 of 2008 on the file of Additional Judicial Magistrate of First Class, Chilakaluripet (for short, the trial Court).

2. The 1st respondent-complainant lodged a private complaint before the trial Court, under Section 200 Cr.P.C., stating that Accused No.2 approached him for purchasing of De-Oiled Rice Bran, in the name of the petitioner/A1, on credit basis, and the complainant accepted the proposal of accused No.2 and, thereafter, the complainant has sent the De-Oiled Rice Bran in vehicles on different invoices, and also maintained a Khata in the name of the accused. It is further stated that the accused Nos.1 and 2 received the De-Oiled Rice Bran on various dates but they failed to make payment. When the complainant demanded the accused to make payment, the accused No.2 issued a Cheque bearing No.333040 dated 15.05.2007 for Rs.2,00,000/- drawn on State Bank of India, Eluru Branch, as part-payment. The complainant presented the cheque in the Indian Bank, Chilakaluripet Branch, for encashment, but the cheque was returned on 26.05.2007 with a memo Funds Insufficient. The complainant informed the accused about the return of cheque by the Bank due to insufficient funds in the account of the accused. But the accused kept silent and did not make the payment. The complainant got issued a legal notice to the accused on 19.06.2007 demanding them to make the payment due, but they did not respond and did not pay the amount. Therefore, the complainant filed a private complaint before the trial Court alleging that the accused Nos.1 and 2 have committed the offences punishable under Sections 138 and 142 of the Negotiable Instruments Act, 1881 (for short, the NI Act). The complaint was taken on file as C.C.No.208 of 2008. Seeking to quash the proceedings against the petitioner/A1, this criminal petition is filed.

3. Heard the learned counsel Sri T. Rama Koteswar Rao for the petitioner; learned counsel Sri Nuthalapati Krishna Murthy for the respondent No.1-complainant; and learned Public Prosecutor representing the State.

4. Learned counsel for the petitioner submitted that the allegation made by the complainant that the De-Oiled Rice Bran was purchased by the accused No.2 in the name of accused No.1, is not correct. It is further submitted that the cheque in question was signed and issued by accused No.2 and that the petitioner/A1 is in no way connected with the issuance of the cheque and, therefore, there is no liability against the petitioner/A1 in this case and, therefore, there is no cause of action for the complainant to fasten liability to the petitioner/A1 and the prosecution launched against the petitioner basing on the private complaint filed by the complainant is a sheer abuse of process of Court, and hence the proceedings in C.C.No.208 of 2008 against the petitioner/A1 are liable to be quashed.

5. In support of his contentions, the learned counsel for petitioner relied on the judgment passed by the High Court of Patna in Sarita Kumari v. State of Bihar, 2014 LawSuit (Pat) 320, and drawn the attention of the Court to paragraph 17 which reads as under:

“17. The matter went in appeal before the Hon’ble Supreme Court. After hearing the parties, while allowing the appeal the Hon’ble Supreme Court in para 27 held as under:-

"In the light of the above discussion, we hold that under Section 138 of the Act, it is only the drawer of the cheque who can be prosecuted. In the case on hand, admittedly, the appellant is not a drawer of the cheque and she has not signed the same. A copy of the cheque was brought to our notice, though it contains the name of the appellant and her husband, the fact remains that her husband alone had put his signature. In addition to the same, a bare reading of the complaint as also the affidavit of examination-in- chief of the complainant and a bare look at the cheque would show

















Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top