Trustees of an accused Trust are liable for cheque dishonor under NI Act, with notice served on the Trust meeting legal requirements.

JUDGMENT :

NAVIN CHAWLA, J.

1. These petitions have been filed under Section 482 of the Code of Criminal Procedure, 1973 (in short, ‘Cr.P.C.’) challenging the Order dated 20.12.2019 passed by the learned Metropolitan Magistrate-02 (NI Act), North-West District, Rohini Courts, Delhi (hereinafter referred to as the ‘Trial Court’) in Complaint Case No.5505/2019, titled Shrichand Hemnani v. Mother's Pride Punjabi Bagh & Ors. (in CRL.M.C. 6094/2022); Complaint case No. 5503/2019 titled Puja Hemnani v. Mother's Pride Punjabi Bagh & Ors. (in CRL.M.C. 6095/2022); Complaint case No. 5504/2019 titled Asha Hemnani v. Mother's Pride Punjabi Bagh & Ors. (in CRL.M.C. 6096/2022) and Complaint case No. 5501/2019 titled Vinod Hemnani v. Mother's Pride Punjabi Bagh & Ors. (in CRL.M.C. 6097/2022) (hereinafter collectively referred to as the ‘Complaint Cases’), filed by the respondent(s) herein, under Section 138 of the Negotiable Instruments Act, 1881 (in short, ‘NI Act’).

2. As common questions of law and facts arise in these petitions, and common submissions have been made by the learned counsels for the parties, these petitions are being considered and disposed of by way of this common judgment.

3. To appreciate the submissions made by the learned counsels for the parties, the following background facts leading to the filing of the present petitions deserve notice:

a) The above complaint cases have been originally filed by the respondent(s) herein, making 10 (ten) accused including Presidium Eduvision Trust, through its Trustees.

b) In the Complaints, it is averred that somewhere in December, 2014, the respective respondent(s)/complainant(s) had contacted either the accused no.3, that is, Ms.Sudha Gupta, Chairman of Mother’s Pride Punjabi Bagh and Presidium Eduvision Trust or/and the accused no.2, that is, Presidium Eduvision Trust, through its trustees, for admission of the child in the school of Mother’s Pride Educational Institute Pvt. Ltd.. It was alleged that the accused nos.3 to 10 came in contact of the respondent(s) and the family members, and represented and assured them about their position, inter alia, in the accused no.2, that is, Presidium Eduvision Trust, and also claimed about their relationship with the Mother’s Pride Educational Institute Pvt. Ltd..

c) It is alleged that based on their representation, the respondent(s) have allegedly extended loans to the accused, in the joint name of accused no.1-Mother’s Pride Punjabi Bagh and the accused no.2-Presidium Eduvision Trust. It is alleged that the accused were to pay interest at the rate of 19.5% per annum on the loan amount for the period of the loan. It is alleged that till the month of June, 2018, accused nos.1 to 10 paid interest on the said loan, however, thereafter they defaulted in payment of interest;

d) It is claimed that on 01.12.2018, when the respondent(s) deposited the cheques issued by the accused nos.1 to 10 for repayment of the loan, the same were dishonoured with the remark „Funds Insufficient‟. It is averred that the respondent(s) thereafter issued respective legal notices dated 28.01.2019 to the accused nos.1 to 10 to repay the cheque(s) amount, however, the same was not paid. The respondent(s) in the original complaint(s) also pleaded and made similar allegations, including as under (in Complaint Case No.5505/2019):

“20. That it was represented by Accused nos 1 to 10 that the accused no. 1 is a unit of Mothers Pride Education Institution Pvt. Ltd. and it was further represented by them that Accused no. 3 is chairman of entire Mothers Pride Group an