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1998 Supreme(Guj) 219

Gujarat High Court
Judgename :M.H.Kadri
ANCHOR CAPITALS OF INDIA LIMITED - Appellant
Versus
STATE - Respondent
CRIMINAL APPEAL 6657 of 1997
Decided On : 04/22/1998

Advocates Appeared: K.P.RAVAL, M.J.DAGLI, Y.F.MEHTA

Headnote:(a) Negotiable Instruments Act, 1881 - Secs. 138 & 139 - Case of dishonoured cheques - Statutory notice served - Payment not made - Complaint filed - Objections taken and petition under Sec. 482 CrPC filed to quash the cognizance - There are two grounds; (1) Complaint does not disclose the ingredients under Sec. 138 and (2) Complaint not filed by the proper person - Court gave the analysis of Sec. 138 (para 13) and then narrated the conditions required under Sec. 142 for taking cognizance of offences under the Act (para 14) - Ingredients to constitute an offence under Sec. 138 were laid down (Para 19) - Held, Court found the complaint in order.

       One need not repeat the very words found in Sec. 138 of the Act to constitute an offence. The complaint and the documents annexed with it are to be looked into. If the allegations in the complaint make out such a meaning that the cheques were issued towards the consideration received by the petitioner-Company would be sufficient to attract the provisions of Sec. 138 of the Act. One need not necessarily extract and put the very words in the complaint to comply with the requirement of the section. There need not be any such ritualistic repetition in the complaint (See (1) 1995 Banking Cases, Page 575 (Madras High Court)).

       [Para 20]

       (b) Negotiable Instruments Act, 1881 - Sec. 139 - Presumption - This section creates a statutory presumption that a cheque issued is always in discharge of debt or other liability - It is for the accused to show that it was issued not in discharge of any debt or other liability.

       It is for the accused to show that the cheque in question was not issued in discharge of any debt or other liability. The High Court, therefore, held that reading Secs. 138 and 139 of the Act together, it becomes abundantly clear that it is for the accused to show that the cheque issued by the him and dishonoured by the bank was not in the discharge of any debt or liability.

       [Para 21]

       (c) Civil Practice - The Court should persue the complaint with a pragmatic perception - It should be read with the documents attached to it.

       [See Para 11]

M. H. KADRI, J.

( 1 ) PETITIONERS have filed this application under Sec. 482 of the code of Criminal Procedure, 1973 (to be referred to as "the Code") to quash the complaint which is registered as Criminal Case No. 2793 of 1996 before the metropolitan Magistrate Court No. 16, Ahmedabad, for the offences punishable under sec. 138 of the Negotiable Instruments Act, 1881 (to be referred to as "the Act" ).

( 2 ) PETITIONER No. 1 Anchor Capitals of India Limited is doing business of financing and ancillary activities and in furtherance of the said activity, the Company had to appoint various agents to conduct the business of the Company, with limited authority and power. In the month of October 1996 it came to the notice of the present petitioner-Company that various agents have played fraud with the Company and have misused the cheques given to them. A newspaper item was published in the daily newspaper "lokdesh" on 5-2-1997 with regard to the fraud committed by the agents of the Company by misusing the cheques given to them. Respondent No. 2 had transaction with the agents of the Company at Ahmedabad, and had obtained cheques written in the name of Mahesh Label Company. Respondent No. 2 who is sole proprietor of Mahesh Label Co. , had given the said cheques received by her from various parties of Ichal Karanjee, Dist. Kolhapur, Maharashtra State and delivered the said cheques to the petitioner-Company. That the petitioners after taking their commission had in turn issued these cheques in favour of the respondent No. 2. The details of the said cheques are as under : name of the Cheque Amount Date of bank No. Cheque 1. Siddhi Co-op. Bank, 014772 18,731/- 10-10-1996 dhan Laxmi Market, revdi Bazar. 2. As above 014771 20,979/- 9-10-1996 3. As above 014762 12,038/- 6-10-1996 4. As above 014751 6,560/- 10-10-1996 5. As above 014778 15,545/- 10-10-1996

( 3 ) THE said cheques were deposited by the respondent No. 2 in the Bank on 10-10-1996 which came to be dishonoured on 22-10-1996. Respondent No. 2, thereafter, through her Advocate served statutory notice under Sec. 138 (b) of the act to the petitioners which was received by the petitioners on 24-10-1996. Petitioners gave reply to the said notice on 2-11-1996. As the petitioners did not comply with the statutory notice and did not make the payment of the dishonoured cheques, on 20-11-1996 a complaint came to be filed against the petitioners in the court of Metropolitan Magistrate, Ahmedabad, for the offence punishable under Sec. 138 of the Act.

( 4 ) THE said complaint was registered as Criminal Case No. 2793 of 1996. The learned Metropolitan Magistrate, Court No. 16, Ahmedabad, examined the complainant on oath and after satisfying himself with regard to the allegations made in the complaint, took cognizance as the complaint disclosed ingredients of the offence under Sec. 138 of the Act. After taking cognizance of the offence under Sec. 138 of the Act, the learned Metropolitan Magistrate issued process against the petitioners for the said offence, which has been challenged by the petitioners by filing this Misc. Criminal Application.

( 5 ) LEARNED Counsel for the petitioners Mr. Y. F. Mehta has submitted that prima facie the complaint does not disclose the ingredients of the offence punishable under sec. 138 of the Act. It is submitted that the necessary ingredients that the petitioners had issued cheques towards the discharge of debt or other liability is found missing in the complaint, and therefore, the complaint requires to be quashed. Learned counsel for the petitioners has also submitted that the cheques in question were not issued towards the debt or any other liability, and therefore, the ingredients under sec. 138 of the Act were not attracted and hence, the complaint also requires to be quashed. It is further submitted by the learned Counsel for the petitioners that the complaint is not filed by the authorized person of Mahesh Lable Co. , and on that ground also the complaint req



































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