IN THE HIGH COURT OF JUDICATURE AT CALCUTTA
MADHUMATI MITRA, J.
Ashwini Kumar Singh & Others - Petitioner
Versus
M/s. Panchami Stone Quarry - Respondent
C.R.R. No. 2835 of 2018
Decided On : 11-09-2019
Negotiable Instruments Act - Quashing of Proceedings - Section 138 - Section 141 - [Section 482] - [Criminal Procedure Code 1973] - [Section 138, Section 141] - Summary of Acts and Sections: The court discussed the provisions of Section 138 and Section 141 of the Negotiable Instruments Act, 1881, and their interpretation in light of the allegations made in the complaint. The court emphasized the necessity of specific averments in the complaint to fulfill the requirements of Section 141 and the vicarious liability of persons in charge of the company's business. The court also referred to relevant case laws and their impact on the interpretation of the legal provisions.
Fact of the Case:
The complainant, a partnership firm, filed a petition of complaint against the accused persons under Section 138 of the Negotiable Instruments Act, alleging dishonor of a cheque issued by the accused company. The accused petitioners sought quashing of the proceedings, contending that they were not responsible for the company's day-to-day affairs and that the complaint did not contain specific averments as required under Section 141 of the Act.
Finding of the Court:
The court found that the complaint contained sufficient averments to meet the requirements of Section 141 of the Act, and the continuance of criminal proceedings against the petitioners would not be an abuse of the process of the Court. The court dismissed the prayer for quashing of the proceedings and clarified that the observations in the judgment should not be taken as an expression of any opinion regarding the merit of the criminal proceedings pending before the Learned Magistrate.
Issues: The issues involved in the case included the sufficiency of averments in the complaint to fulfill the requirements of Section 141 of the Negotiable Instruments Act, the vicarious liability of persons in charge of the company's business, and the abuse of process of the Court in continuing the criminal proceedings against the petitioners.
Ratio Decidendi: The court emphasized the necessity of specific averments in the complaint to fulfill the requirements of Section 141 of the Negotiable Instruments Act and discussed the vicarious liability of persons in charge of the company's business. The court also clarified the standard for quashing proceedings under Section 482 of the Criminal Procedure Code, emphasizing the need for unimpeachable evidence to indicate that allowing the proceedings to continue would be an abuse of process of the Court.
Final Decision: The court dismissed the prayer for quashing of the proceedings and clarified that the observations in the judgment should not be taken as an expression of any opinion regarding the merit of the criminal proceedings pending before the Learned Magistrate. The Learned Trial Magistrate was directed to proceed with the complaint and dispose of the same in accordance with the law with utmost expedition.
JUDGMENT :
1. The petitioners have approached before this Court by filing an application under Section 482 of the Code of Criminal Procedure 1973 praying for quashing of the proceedings being C.S. Case No.AC/121/17 under Section 138 read with Section 141 of the Negotiable Instruments Act,1881 pending before the Court of learned Judicial Magistrate 2nd Court Suri. At the same time petitioners have approached for quashing of the orders dated 13th July, 2017 and 9th July, 2018 regarding issuance of summons upon the petitioners and rejection of the petitions under Section 305 and 205 of the Code of Criminal Procedure respectively.
2. Before considering the rival submissions made by the learned Counsel for the parties, the relevant facts which are necessary for disposal of this revisional application may be set out briefly.
3. The opposite party M/S Panchami Stone Quarry filed a petition of complaint against the present petitioners on 13th July, 2017 before the learned Additional Chief Judicial Magistrate Suri, Birbhum. The petition of complaint was registered as AC case No.121 of 2017. Learned Additional Chief Judicial Magistrate on the same date transferred the said petition of complaint to the Judicial Magistrate 2nd Court Suri, Birbhum after taking cognizance. Before transferring the said complaint petition to the transferee Court, the learned Additional Chief Judicial Magistrate issued summon mentioning the liberty available to the accused/petitioners to adopt plea bargaining. On 26th March, 2018 the petitioners entered appearance before the learned Judicial Magistrate 2nd Court, Suri, Birbhum and filed two separate applications under Section 205 and 305 of the Code of Criminal Procedure. Learned Magistrate directing the accused persons to appear on 16.05.2018. On 9.07.2018 Learned Magistrate rejected the applications filed by the present petitioners/accused persons under Section 305 and 205 of the code of Criminal Procedure.
4. The petition of complaint filed before the learned Magistrate has been marked as annexed P/1 to the application under section 482 of the Code of Criminal Procedure.
5. Present opposite party/complainant is a partnership Firm and deals in building constructions, etc. having its office at village Panchami, P.S. Md. Bazar, Dist. Birbhum. It has been stated in the petition of complaint that accused No.1 M.B.L. Infrastructures Ltd. is a limited company and the other accused persons are the Directors of accused no.1 company and they are responsible to conduct the day to day business affairs of the accused no.1. It is specifically mentioned in the said petitioner of complaint that accused nos. 3, 4, and 5 and accused no.2 are the authorized signatory of MBL Infrastructures Ltd. The accused company placed orders on different dates for purchasing of GSB, Stone Dust and Stone Aggregate at different rates and quantity vide purchase orders dated 24.12.2015, 25.5.16, 7.01.16, and 9.04.16 and others. The complainant company according to the said purchase orders sold and delivered the said materials at the designated site for a sum of Rs.2,31,60,6,74/- (Rupees Two Crore Thirty One Lakh Sixty Thousand Six hundred Seventy Four) only and the accused persons received the goods in good condition without raising any objection towards the quality and quantity of the materials supplied in any manner whatsoever. The accused Nos. 2 to 5 on behalf of the accused no.1 company in discharge of the said existing legal liabilities against the bills raised by the complainant being issued an account payee cheque bearing no.001174 dated 15th March, 2017 of Rs.1,71,08,512/-(Rupees One Crore Seventy One Lakh Eight Thousand Five Hundred Eleven) only drawn on Kotak Mahindra Bank, Park Street Branch in favour of the complainant duly signed by the accused no.2 being the Director, who was the authorized signatory of accused no.1 company. On 10.04.2017 complainant deposited the said cheque with the bank of the complainant for encashment but the sai
Katta Sujatha v. Fertilizers & Chemicals Travancore Ltd. (2002) 7 SCC 655 : 2003 SCC(Cri) 151
Pepsi foods Ltd & anr. Vs. Special Judicial Magistrate & Anr. (1998)5 SCC 749
Central Bank Of India Vs. Asian Global Ltd & Ors. (2010) 11 SCC 203
Mannalal Chamaria & Anr. vs. State of West Bengal & Anr. (2014) 13 SCC 571
A.R. Radha Krishna Vs. Dasari Deepthi & Ors. 2019 SCC online SC 357
Paresh P. Rajda Vs. State of Maharashtra & Anr.
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S.M.S Pharmaceuticals Ltd. Vs. Neeta Bhalla & Anr.
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