2007 Supreme(Bom) 630
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
APPELLATE JURISDICTION
J.H. BHATIA, J.
Kishorilal Ramnath Dhoot &another - Appellant
V/s
Roots and Herbs Pvt. Ltd.& Another - Respondent
CRIMINAL APPLICATION NO.1232 OF 1999
Decided On. 26TH APRIL, 2007.
Advocate Appeareds
Mr. R.F. Totla, with Mr. Anilkumar Patil Advocate for the applicants.
Mr. Shailandra Aglawe, advocate for respodnent No.1
Headnote:Criminal Procedure Code, 1973 - Sections 482 and 397(1)-Dishonour of cheque.-Application for quashing of complaint made. It was held that there is no restriction on presentation of cheque number of times within period of validity and every time a fresh cause of action arise. In view of facts as when cheque was dishonoured and notice given are facts that can be looked into at trial of case.
Negotiable Instruments Act, 1881 - Sections 138 and 141-Dishonour of cheque.-Liability of the Directors of Company for dishonour of cheque was the issue plea for exemption from prosecution under Section 138 of Act was taken by producing higher authority. It was held that sign of the petitioner is disclosed by cheque. Hence he is responsible.
Negotiable Instruments Act, 1881 - Sections 138 and 141-Limitation.-Complaint was rejected by Magistrate in Court and thereafter by Sessions Judge in revision on ground that notice is time barred or beyond time. Order challenged. It was held that it is well settled law that fresh cause of action arises every time when cheque is produced. Hence, by the facts of the case, it seems that notice is within limitation, hence complaint cannot be quashed on this ground.
This is an application filed under section 482 Cr.P.C. seeking to quash the criminal proceeding in Reg. Criminal case No.245/1997 pending before J.M.F.C., Pune and registered on the basis of the complaint lodged by responded No.1.
2. To state in brief, the respondent No.1/ complainant filed the complaint under section 138 of Negotiable Instrument Act against Dhoot Chemo Plast Pvt. Ltd., its two Directors and Finance Secretary. It was contended that the present applicants are the Directors and Executives of the Company carrying on the business in the name and style "Dhoot Chemo Plast Pvt. Ltd." The accused required the complainant to advance the loan of Rs. 15 Lakh with collateral security. As per the terms and conditions of the loan, the complainant had advanced the loan by two Demand Drafts, one of Rs. 10 Lakh and another of Rs.5 Lakh.The Demand Drafts were received by the Finance Secretary of the company, who was accused No.3. Out of the said amount, on 11/4/1997 the accused repaid amount of Rs. 5 lakh by a Demand Draft and for the balance amount of Rs. 10 Lakh the accused issued a cheque against its account with United Western Bank Ltd. on 3/4/1997. The cheque was presented by the complainant with its Banker, Union Bank of India, on 1/8/1997 for clearance. However, the cheque was returned with the remarks "referred to drawer". This was informed to the complainant on 5/8/1997. The complainant threatened to take legal action and therefore, the accused agreed to settle the payments and issued another cheque dated 12/8/1997 for the amount of Rs. 10,38,407/-. This cheque was deposited by the complainant on 13/8/1997. The cheque was dishonoured on 20/8/1997. In para 6 of the complaint it is mentioned that it was deposited on 8/9/1997 and was dishonoured on 11/9/1997. Thus there are two dates of presentation and two dates of dishonour of the cheque. According to the complainant, on 24/9/1997 notice was issued by Registered Post A.D. and it was actually served on the accused on 3/10/1997. However they failed to make payment within stipulated period of 15 days in spite of service of notice. Therefore, the complainant filed the complaint on 18/11/1997. The verification statement of K.K. Jhunjhumwala, the Director of the complainant Company was recorded on 15/12/1997. On the basis of the same, the process was issued against the accused persons.
3. The accused Company Dhoot Chemo Plast Pvt.Ltd. filed a Revision Application No. 285/1998 before the Sessions Judge, Pune through its two Directors, who are the present applicants, challenging the issuance of process. After hearing the parties that revision application was rejected by the learned Additional Sessions Judge on 12/1/1999. Thereafter the present petitioners filed this application under section 482 Cr.P.C. seeking to quash the proceeding. It is contended that in the complaint, only the company Dhoot Chemo Plast Pvt. Ltd. is shown as accused through the petitioner Nos. 1 and 2 being the Directors and respondent No.2 being the Finance Secretary. It is contended that the present petitioners and respondent No.2 were not shown as accused and in spite of that process was issued against them. It is contended that the notice issued to the petitioners was not valid, legal and proper, because it did not disclose the cheque number, which was allegedly dishonoured. It is contended that it was necessary, because more than one blank cheques were handed over to the complainant. It is further contended that the process could not have been issued against the petitioner and respondent No.2 unless it is averred in the complaint that these three persons were liable in their individual capacity. It is further contended that the cheque was dishonoured on 20/8/1997, while as per the contents of the complaint, the notice was issued on 24/9/1997 i.e. beyond the period of 15 days and therefore, it was not a valid notice.