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GUJARAT HIGH COURT
J.B. Pardiwala, J.
Gulf Asphalt Pvt. Ltd. —Applicant
versus
Dipesh Sinh Kishanchandra Rao and Anr. —Respondents
Special Criminal Application (Quashing) No.5562 of 2014
Decided on 8.5.2015

Advocates:
Counsel for the Parties:
For the Applicant No. 1:Mr AR Gupta, Advocate
For the Respondent No. 1:Ms Hetvi H Sancheti, Advocate

IMPORTANT POINT
Private limited company can seek substitution as a complainant in complaint filed by a proprietary concern.

Headnote:Negotiable Instruments Act, 1881—Sections 138 and 142—Constitution of India—Article 226—Dishonour of cheque—Upon such complaint being filed, Court below took cognizance upon same and ordered issue of process against accused—When complaint was lodged by proprietary concern, same was maintainable as proprietary concern was payee of cheque—At a later stage for purpose of business convenience, if entire business of proprietary concern with all its rights and liabilities were taken over by a private limited company, then such private limited company can seek substitution as a complainant in complaint so that private limited company can pursue complaint further in accordance with law—Trial Court passed a correct order allowing application and permitting applicant to be substituted as a complainant in place of original proprietary concern. (Paras 17, 20, 31 and 41)

       Result: Special Criminal Application allowed.

       

JUDGMENT

J.B. Pardiwala, J.—By this application under Article 227 of the Constitution of India, the applicant – original complainant calls in question the legality and validity of the order dated 16.10.2014 passed by the learned Additional Sessions Judge, Court No.3, City Civil and Sessions Court, Ahmedabad in the Criminal Revision Application No.191 of 2014, by which the learned Sessions Judge allowed the revision application filed by the respondent No.1 herein – original accused quashing and setting aside the order dated 03.04.2014 passed by the learned Additional Chief Metropolitan Magistrate, Court No.28, Ahmedabad in the Criminal Case No.2592 of 2010 permitting the complainant to be substituted.

2. The facts giving rise to this application are as under:

2.1 A sole proprietorship firm viz. “Aspam Petronergy Private Limited” through its proprietor filed a private complaint against the respondent No.1 – the accused under Section 138 of the Negotiable Instruments Act, 1881 (for short, “the Act”), which came to be registered as the Criminal Case No.2592 of 2010.

3. On filing of the complaint, the learned Magistrate took cognizance upon the same and ordered issue of process against the accused for the offence punishable under Section 138 of the Act.

4. During the pendency of the trial, the proprietary concern got converted into a private limited company namely, “Aspam Petronergy Private Limited”.

5. Since the complaint was filed in the name of the proprietary concern through its proprietor and at a later stage, the proprietary concern got converted into a private limited company, the private limited company through its authorized signatory preferred an application Exh.3 before the trial Court to substitute itself as a complainant in place of the original proprietary concern.

6. The application Exh.3 came to be allowed by the trial Court permitting the private limited company to be substituted as the original complainant for the purpose of proceeding further with the complaint.

7. The respondent No.1 – the original accused being dissatisfied with the order passed by the trial Court below Exh.3 preferred a Criminal Revision Application No.191 of 2014 and challenged the order passed by the trial Court below Exh.3.

8. The Revisional Court, vide order dated 16.10.2014, allowed the revision application and quashed the order passed by the trial Court below Exh.3.

9. The applicant – original complainant being dissatisfied has come up with the present application.

10. Mr. A.R. Gupta, the learned advocate appearing for the applicant vehemently submitted that the Revisional Court committed an error in quashing the order passed by the learned Magistrate below Exh.3 permitting the applicant herein to be substituted as a complainant in place of the proprietary concern.

11. Mr. Gupta submitted that the Revisional Court proceeded absolutely on a wrong footing that the order passed by the trial Court below Exh.3 was in the form of an amendment in the complaint. Mr. Gupta submitted that the substitution of a complainant in the complaint would not amount to amending the complaint. Mr. Gupta submitted that the two decisions relied upon by the Revisional Court, namely (1) Lekhraj Singh Kushwah v. Brahmanand Tiwari reported in 2014 Cr. L.J. 290, and (2) Suboodh s. Salaskar v. Jayprakash M. Shah and another reported in AIR 2008 Supreme court 3086(1), have no application worth the name in the present case.

12. In such circumstances referred to above, Mr. Gupta prays that there being merit in this application, the same be allowed and the impugned order be quashed.

13. On the other hand, this application has been vehemently opposed by Ms. Hetvi H. Sancheti, the learned advocate appearing for the respondent No.1 – accused. She submitted that no error, not to speak of any error of law could be said to have been committed by the Revisional Court in passing the impugned order. She submitted that although the complaint was lodged in the name of a proprieta

























































































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