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2023 Supreme(AP) 1611

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
K.Suresh Reddy, J.
Miriyala Rayappa – Petitioner
Versus
State of Andhra Pradesh & Anr. – Respondents
CRL.P.No.6600 of 2014
Decided On : 08-11-2023

The initiation of proceedings under Section 138 of the Negotiable Instruments Act is not barred by the concurrent filing of a civil suit for recovery of the same amount.

Headnote:(A) Negotiable Instruments Act, 1881 - Sections 138 and 142 - Criminal Petition under Section 482 Cr.P.C. seeking to quash proceedings for dishonor of cheque - Petitioner borrowed Rs.5,00,000/- and issued a cheque for Rs.7,50,000/- which was returned due to insufficient funds - The mere filing of a civil suit does not bar initiation of proceedings under Section 138 - Criminal Petition dismissed. (Paras 4, 7, 8)

ORDER :

K.Suresh Reddy, J.

This Criminal Petition, under Section 482 of Cr.P.C., has been filed by the petitioner/A-1, seeking to quash the proceedings in C.C.No.143 of 2014 on the file of the court of Special Mobile Magistrate, Guntur.

2. Heard Sri K.Srinivas, learned counsel for the petitioner and the learned Assistant Public Prosecutor.

3. As seen from the record, the 2nd respondent herein has filed a private complaint under Sections 190 and 200 Cr.P.C. against the petitioner herein for the offence punishable under Sections 138 and 142 of the Negotiable Instruments Act,1881.

4. The brief facts of the case of the complainant succinctly is thus:-

The petitioner herein has borrowed an amount of Rs.5,00,000/- from the 2nd respondent/complainant on 10.01.2011 for the purpose of his family expenses and executed a promissory note in favour of the complainant and agreed to repay the said amount with interest @ 24% per annum. On repeated demands, the petitioner gave a cheque, dated 17.06.2013, bearing No.28831, for an amount of Rs.7,50,000/-, drawn on Union Bank of India, Lakshmipuram Branch, Guntur towards full and final settlement of the above debt. When the 2nd respondent/complainant presented the said cheque in his Bank, the same was returned with an endorsement "insufficient funds". After complying the formalities, the 2nd respondent/complainant has filed the private complaint.

5. The learned Magistrate took the cognizance of the case under Section 138 of the N.I.Act and issued summons to the petitioner.

6. The learned counsel for the petitioner contends that the 2nd respondent/complainant has filed a civil suit on the basis of promissory note seeking recovery of Rs.7,50,000/-. The said suit was decreed on 06.08.2015. In view of the same, the learned counsel seeks to quash the proceedings against the petitioner as the 2nd respondent has already filed a civil suit and obtained a decree. Except the said ground, there are no other grounds raised by the learned counsel for the petitioner.

7. This Court perused the entire material available on record. Mere filing of a civil suit, in the considered view of this court, is not a bar for initiation of the proceedings under Section 138 of the N.I.Act. As such, the ground raised by the learned counsel for the petitioner is not tenable and the Criminal Petition is liable to be dismissed.

8. Accordingly, the Criminal Petition is dismissed. Miscellaneous applications pending, if any, shall stand closed in consequence.

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