IMPORTANT POINT
Vicarious liability under the N.I. Act requires the company to be a party; absence of the company invalidates proceedings against the individual.

ORDER :

This criminal petition is filed under Section 482 of Criminal Procedure Code (for short “Cr.P.C.”) to quash the proceedings against the petitioner/accused in C.C.No.145 of 2018 on the file of the Judicial First Class Magistrate, Puttur, Chittoor District, registered for the offence punishable under Section 138 and 142 of the Negotiable Instruments Act (for short “N.I.Act”) read with Section 200 Code of Criminal Procedure (for short “Cr.P.C.”).

2. Petitioner herein is the accused. Respondent No.2 is the complainant. Respondent No.2 filed a private complaint against the petitioner for the offence punishable under Section 138 of the N.I.Act read with Section 200 of Cr.P.C. alleging that the 2nd respondent-complainant is working as General Manager of Kolar Paper Mills Limited, Parameswaramangalam Village, Puttur Mandal, Chittoor District and he maintains the affairs of the company.

3. The petitioner-accused is customer of the said factory and used to transact the business with the complainant company by taking Kraft paper for using for his business which is named as “Chams Cartons” situated at K.R.S.Road, Mogarahalli, Hosahalli Post, Srirangapatna Taluk, Mandya District, Karnataka. During the business transaction, the accused took consignments of Kraft paper for the purpose of business and at one point of time he fell due of some amounts in respect of which the petitioner-accused issued six cheques bearing No.991198 on 17.03.2017 for an amount of Rs.2,04,717/-; bearing No.991199 on 25.03.2017 for an amount of Rs.2,04,718/-; bearing No.991200 on 17.04.2017 for an amount of Rs.2,00,237/-; bearing No.991201 on 25.04.2017 for Rs.2,09,518/-; bearing No.991202 on 17.05.2017 for Rs.2,09,518/- and No.991203 on 25.05.2017 for Rs.2,09,519/- drawn on his branch, State Bank of Mysore. When the said cheques were presented by the complainant, the said cheques were dishonoured due to „insufficient funds?. Upon which, legal notice was issued and the same was acknowledged by the accused. The accused also gave reply on 15.07.2017 accepting his liability to pay the amount but he failed to repay the amount as accepted. Hence, the present complaint came to be filed by the complainant.

4. Heard learned counsel for the petitioner, learned Public Prosecutor appearing for respondent No.1 and Mr.P.Venkata Rao, learned counsel appearing for respondent No.2.

5. Having heard the submissions made by the learned counsel representing both parties and on perusal of the material available on record, the point that arises for consideration is as follows:

“Whether the proceedings against the petitioner in C.C.No.145 of 2018 on the file of learned Judicial First Class Magistrate, Putur, Chittoor District, are liable to be quashed by exercising jurisdiction under Section 482 of Cr.P.C.?”

The present petition has been filed under Section 482 of Cr.P.C. Section 482 of Cr.P.C saves the inherent powers of the High Court to make such orders as may be necessary to give effect to any order under the Code or to prevent abuse of the process of any Court or otherwise to secure the ends of justice. It is an obvious proposition that when a Court has authority to make an order, it must have also power to carry that order into effect. If an order can lawfully be made, it must be carried out; otherwise it would be useless to make it. The authority of the Court exists for the advancement of justice, and if any attempt is made to abuse that authority so as to produce injustice, the Court must have power to prevent that abuse. In the absence of such power the administration of law would fail to serve the purpose for which alone the Court exists, namely to promote justice and to prevent injustice. Section 482 of Cr.P.C confers no new powers but merely safeguards existing powers possessed by the High Court. Such power has to be exercised sparingly in exceptional cases and this power is external in nature to meet the ends of justice.

Time and again, the scope of powers of this Court unde