IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
Tarlada Rajasekhar Rao, J.
A Rafeeq - Appellant
Versus
C Vijaya - Respondent
Criminal Petition No. 2885 of 2019
Decided On : 09-11-2023
Power of Attorney - Negotiable Instruments Act - Section 138, Section 142 - Section 85 of the Evidence Act - Summary of Acts and Sections: The court discussed the legal provisions related to the power of attorney, its authority to file a complaint, and the presumption as to powers of attorney under Section 85 of the Evidence Act. The court also referred to Section 138 and Section 142 of the Negotiable Instruments Act in the context of filing a complaint for the offence punishable under these sections.
Fact of the Case:
The accused borrowed a substantial amount from the complainant's brother, issued a cheque that was later found to be fraudulent, and subsequently faced a complaint for the offence punishable under Sections 138 and 142 of the Negotiable Instruments Act.
Finding of the Court:
The court found that the factual aspects, such as the genuineness of the power of attorney and the allegations of misuse of cheques, could not be decided in the proceeding under Section 482 of the Cr.P.C. It held that a detailed finding would be required after considering the entire facts during the trial.
Issues: The issues revolved around the validity of the complaint, the authority of the power of attorney holder to file a complaint, and the genuineness of the cheques and the power of attorney.
Ratio Decidendi: The court emphasized that procedural defects and irregularities which are curable should not be allowed to defeat substantive rights or cause injustice. It also highlighted the need for a detailed finding after considering all facts during the trial.
Final Decision: The court dismissed the Criminal Petition, stating that the issues raised required a detailed finding after considering all facts during the trial. It directed the trial court to answer the issue regarding the disputed power of attorney and the filing of the complaint.
ORDER
Tarlada Rajasekhar Rao, J. - The present Criminal Petition is filed under Section 482 of the Code of Criminal Procedure, 1973 (Cr.P.C.), praying to call for the record and to quash the complaint in C.C.No 225 of 2018 on the file of XII Additional Metropolitan Magistrate, Gannavaram, Krishna District.
2. The petitioner herein is the accused and the 1st respondent is complainant. To avoid confusion, hereinafter the petitioner will be referred as 'accused' and that of 1st respondent as 'complainant'.
3. Precisely, the facts of the case are that:
The complainant and the brother of the accused are bosom friends. Both the complainant and the GPA holder were brother and sister having joint family lands situated in Kaltur of Agiripilli Mandal and the accused used to receive amounts from the complainant's brother for his business purpose and used to repay the same amount. On 11.04.2016, the accused has borrowed an amount of Rs.2 crores from the complainant's brother for the purpose of development of business and for his family expenses and agreed to repay the same together with interest @ Rs.24% per annum and when demanded, either by complainant's brother or her brothers, the accused has executed a demand promissory note in favour of the complainant's brother, in which the complainant is the first attestor and she is having knowledge of every transaction with the accused and her brother.
4. Thereafter, in spite of several demands made by the complainant as well as her brother to discharge the legally enforceable debt, on 16.01.2018, the accused issued a cheque in favour of the complainant's brother, vide cheque bearing No.779922 drawn on ICICI Bank Limited, Hyderabad Branch, for Rs.2,50,00,000/-. The complainant's brother has presented the said cheque in his bank, i.e., Axis Bank, Gannavaram for the purpose of collection, but on 19.02.2018, the Branch Manager, Axis Bank, Gannavaram informed the complainant's brother that the cheque issued by the accused is a fraudulent as the cheque is coloured Xerox copy of cheque and return memo issued by the ICICI Bank along with the counter letter to the complainant and the same was confirmed by the Branch Manager, ICICI Bank, Chennai in its cheque returned memo dated 23.01.2018. On receiving the memo from the bank authorities, the complainant has issued a legal notice dated 16.03.2018 to the accused and he received the postal acknowledgment dated 19.03.2018 and the accused has issued a reply notice dated 27.03.2018 and thereafter, the complainant has presented the present complaint, which is impugned in the present Criminal Petition to take action against the accused for the offence punishable under Sections 138 and 142 of the Negotiable Instruments Act, 1881 (hereinafter referred, 'the NI Act', for short).
5. Learned counsel for the accused would agitate to quash the C.C.No.225 of 2018 in the present Criminal Petition on two grounds: viz., (i) the GPA was executed on 29.01.2018, but the recital in the GPA shows that the cheque was bounced on 19.02.2018 and a future bouncing waste was mentioned in the same and that itself is evident that the GPA is ante-dated, on such GPA the complainant can maintain the complaint; and the second ground that is agitated by the learned counsel for the accuser is that GPA holder can only initiate criminal proceedings on behalf of the principal under Section 200 Cr.P.C. and the GPA holder cannot file a complaint in her own name as if her is a complainant and the complaint would implicitly show that GPA holder herself has filed the complaint, as such, the complaint is not valid and hence pray to quash the complaint.
6. Learned counsel for the accused relied on the judgment of Apex Court in A.C. Narayana Vs. State of Maharashtra and another, (2014) 11 SCC 790 wherein it is held that where the payee is a proprietary concerned, the complaint or offence punishable under Section 138 of N.I. Act can be filed: (i) by the proprietor of the proprietary concern, describing himse
A.C. Narayana Vs. State of Maharashtra and another
Janki Vashdeo Bhojwani v. Indusind Bank Ltd. (2004) 3 SCC 584
M.M.T.C. Ltd. v. Medchl Chemicals and Pharma (P) Ltd. (2002) 1 SCC 234
MSR Leathers vs. S. Palaniappan
TRK Krosaki Refractories Ltd. vs. SMS Asia Private Ltd. (2022) 7 SCC 612
The main legal point established in the judgment is that procedural defects and irregularities which are curable should not be allowed to defeat substantive rights or cause injustice. The court empha....
Point of Law : Inherent jurisdiction under Section 482 Cr.P.C. though wide, has to be exercised sparingly, carefully and with caution and only when such exercise is justified by the tests specificall....
(1) Dishonour of cheque – In cases where payee/complainant is company, all that is necessary to be demonstrated before Magistrate is that complaint is filed in name of payee.(2) Dishonour of cheque ....
Power of attorney holders can file cheque dishonour complaints if they possess personal knowledge of the transaction; absence of such knowledge may invalidate the complaint.
A person who is not a signatory to the cheque cannot be prosecuted under Section 138 of the Negotiable Instruments Act, 1881, for the offence of dishonour of cheque for insufficiency of funds.
Statutory notice for cheque dishonor must be issued within prescribed time; failure or competence of complaint representative are factual matters for trial, not grounds for quashing under Section 482....
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