IMPORTANT POINT
On factual issue, as to whether the complainant had discharged its obligations or not, the High Court cannot give its final verdict at the stage of section 482, Cr PC.

(Smt.) Ranjana Prakash Desai, J. —Leave granted.

2. These appeals are directed against the judgment and order dated 08/09/2011 passed by the High Court of Gujarat in Criminal Misc. Application No.1757 of 2007 and Criminal Misc. Application No.9158 of 2007 whereby the High Court of Gujarat quashed the criminal complaint filed by the appellant being Criminal Case No.6076 of 2006 pending on the file of the Chief Judicial Magistrate of Vadodara for offences punishable under Section 138 and 142 of the Negotiable Instruments Act (‘the NI Act’).

Brief facts of the appellant-Company’s case.

3. The appellant in both the appeals is the original complainant. It is a private limited company. Contesting respondent no. 2 in appeal arising out of SLP No. 9915 of 2011 is the accused company and contesting respondent nos. 2 to 4 in appeal arising out of SLP No. 9901 of 2011 are its directors.

4. In the course of its business, the accused received bulk orders from Gujarat Informatics Limited (“GIL”), a Government of Gujarat Company for supply of desktop computers, printers, UPS and other products. The complainant being one of the approved vendors on the list of the GIL, the accused, placed various purchase orders with the complainant and the complainant sold and supplied the same as per the demand and specifications.

During the course of business, the accused made part payments regularly. For the remaining outstanding legitimate dues of the complainant, the accused handed over a post-dated cheque bearing No.387176 dated 15/07/2006 for Rs.11,80,670/-drawn on HSBC Bank, Bangalore in favour of the complainant.

5. The complainant presented the cheque twice for collection through its bankers viz. Bank of Baroda, Jetalpur Branch. It was returned unpaid on 3/10/2006 for the reason “Payment stopped by drawer”. The complainant on 13/10/2006 sent a demand notice to the accused asking them to pay the cheque amount within a period of 15 days from the date of the receipt of the notice. The accused failed to pay the amount to the complainant.

6. On 15/11/2006 the complainant filed a complaint being Criminal Complaint No.6076/06 in the Court of Chief Judicial Magistrate, Vadodara, Gujarat against the accused under Sections 138/142 of the NI Act. The Chief Judicial Magistrate, Vadodara, by order dated 15/11/2006 issued summons to all the accused.

7. The accused filed applications before the High Court under Section 482 of the Code Criminal Procedure for quashing of the said complaint case. The High Court by the impugned order dated 8/9/2011 allowed the petition and quashed the said complaint. Being aggrieved by the said order the complainant has approached this Court.

8. We have heard Mr. D.N. Ray, learned counsel for the complainant and Mr. Giriraj Subramanium, learned counsel for the accused. Counsel for the complainant submitted that the High Court erred in coming to the conclusion that the complaint does not disclose offence punishable under Section 138 of the NI Act. Counsel submitted that the High Court was wrong in holding that “stop payment” instructions are not covered by Section 138 of the NI Act. The High Court failed to notice authoritative pronouncements of this Court which state that if a cheque bounces because of “stop payment” instructions it would constitute an offence under Section 138 of the NI Act. Counsel urged that impugned order must, therefore, be set aside. Counsel for the accused, on the other hand, supported the impugned order.

9. The High Court held that provisions of Section 138 of the NI Act are attracted where a cheque is returned by the bank on the ground that there is insufficient amount or that the amount of cheque exceeds the amount arranged to be paid from that account by an agreement made with the bank. The High Court further held that the cheque in question was returned on account of “stop payment” instructions given by the accused vide letter dated 13/07/2006 in view of the fact that the compla