IMPORTANT POINT
Provisions contained under Section 145 of Negotiable Instruments Act do not have prospective effect.

J.J. Munir, J.—The applicant Alok Rajgardia is the drawer of a bounced cheque and has been summoned by the learned XIIIth Additional Chief Judicial Magistrate, Room No. 46, Agra vide order dated 29.04.2004 to stand his trial for an offence punishable under Section 138 Negotiable Instruments Act.

2. The aforesaid order has been passed in Complaint Case No. 3020 of 2004 (M/S S.E. Investments Limited vs. Radhika Automobiles Pvt. Ltd. and others.) and hereinafter is referred to as the impugned order; the complaint giving rise to Complaint Case No. 3020 of 2004 last mentioned is hereinafter referred to as the ‘Complaint’. Alok Rajgardia is hereinafter referred to as the ‘Drawer’ whereas the M/S S.E. Investments Limited-opposite party no. 2 is hereinafter referred to as the “Payee’.

3. That facts material on the basis of which the Complaint was laid by the Payee are that the Payee are a duly incorporated company engaged in the business of financing purchase of motor vehicles, consumer durables and machinery on hire purchase secured by hypothecation. On 10.02.2000, the Drawer along with his brother Ashok Rajgardia and father K. L. Rajgardia and Vikas Nahar came to the office of the Payee requesting finance for machinery on hire purchase in the name of his company M/s Radhika Automobiles Pvt. Ltd. After satisfying themselves about the authority and antecedents of the Drawer, the Payee financed a sum of Rs. 28,00,000/- whereon Rs, 10,50,000/- were hire charges aggregating a total sum of Rs. 38,50,000/- in favour of M/s Radhika Automobiles Pvt. Ltd on condition that the Drawer would repay the loan in 35 monthly installments each worth Rs. 1,10,000/- commencing w.e.f. 10.02.2000. On 04.11.2000, the Drawer again visited the office of the Payee and requested finance to purchase two Baleno cars and one Maruti AC Car on hire purchase basis in the name of the company, that is to say, M/s Radhika Automobiles Pvt. Ltd. The Payee on being satisfied that the Drawer had requisite authority given by the Board of Directors of the Company under reference to raise finance granted in the meeting of the Board held on 28.09.2000 proceeded to process the request and financed a sum of Rs. 16,50,000/- to purchase three cars under a hire purchase agreement whereon a sum of Rs. 4,12,502/- worked out as hire charges, the loan thus aggregating to a sum of Rs. 20,62,502/-. The aforesaid loan was also advanced in favour of M/s Radhika Automobiles Pvt. Ltd and was repayable in 23 monthly installments of Rs. 89,674/- commencing 04.11.2000.

4. It is alleged that the Drawer issued cheque bearing no. 594446 on behalf of the company M/s Radhika Automobiles Pvt. Ltd dated 12.09.2002 worth of Rs. 50,00,000/- drawn on Canara Bank, Belanganj, Agra to discharge the company’s liability and debt due on account of the loan as aforesaid.

5. The Drawer deposited the said cheque in account maintained with Central Bank of India, Agra for collection but the cheque was returned dishonoured by the Drawer’s Bank with a remark “Funds Insufficient” on 13.09.2002. The Payee received information about the dishonour from his bank on 14.09.2002.

6. The Payee upon receipt of intimation of dishonour of the cheque in question sent notices dated 28.09.2002 by registered post to the four accused arrayed in the Complaint which includes the company, M/s Radhika Automobiles Pvt. Ltd, and, the Drawer, besides his brother and father, that were served upon the Drawer on 01.10.2002.

7. It is averred in the Complaint that despite service of notice within 15 days of intimation of dishonour of the cheque and expiry of the period of 15 days required by law from date of service of notice on the Drawer, the Drawer failed to make good the Rs. 50,00,000/- due on the dishonoured cheque, and, till the date of the Complaint.

8. The Complaint was accompanied by the cheque issued by the Drawer that was dishonoured in original, the bank memo from the Canara Bank, Belanganj, Agra, that is to say, the bankers