Gujarat High Court
Judgename :C.K.BUCH
BHARATBHAI K.PATEL - Appellant
Versus
C.L.VERMA - Respondent
CRI.M.A. 836 of 2001
Decided On : 03/08/2002
Industrial Disputes Act, 1947 - Section 25-R - Section 2[p] – Sick Industrial Companies Act 1985 - Negotiable Instruments Act, - Section 138 &139 – Criminal Procedure Code,1973 - Section 482 - original accused of the complaint - Power of attorney holder - Offence punishable - Negotiable Instruments - criminal case registered be quashed and set aside - Recording the statement on oath - specific Power of Attorney - Issued process of the above referred punishable offence - Copy of Power of Attorney produced by the complainant - Executive Director for Continental - Application to drop the proceedings for various grounds - Held, Attempt to rebut legal presumption at initial stage of proceedings is not and cannot be barred but if such an attempt, if made, must be very well founded and above the convincing standard of preponderance of probabilities. The reply to statutory notice is a stage from where it can be shown that the allegations made are absurd, improbable malafide and no prudent person can ever reach a just conclusion that there is sufficient ground to proceed against the accused. In the present case, the petitioner has satisfactorily established the basic infirmity in the complaint and its maintainability - High Court is not justified in entertaining and accepting the plea that there was no debt or liability. Defence plea cannot be entertained in quashing proceedings. But in the cases where the petitioner is able to show to the Court that there was no existing debt or liability at the time of presentation of the cheque for encashment on the basis of the conduct of the complainant or admissions made by the complainant that may be in other legal proceedings - Court inclined to allow this petition as the petitioner has successfully rebutted the presumption at initial stage and has pointed out the basic infirmity as to maintainability of the proceedings - Petition is allowed.
( 1 ) THIS is a petition filed under Section 482 of Cr. P. C. against the complaint, whereby the original accused of the complaint being Criminal Case No. 1010/1998 filed by the respondent No. 1 Mr. C. L. Varma through power of attorney holder in the Court of Metropolitan Magistrate, Ahmedabad [ Court No. 3 ] for the offence punishable under Section 138 of Negotiable Instruments Act has prayed that the complaint and the criminal case registered be quashed and set aside. A private complaint has been filed by the power of attorney holder Mr. Surjeet Singh Macker on behalf of Mr. C. L. Verma. Mr. C. L. Verma was Chairman of Continental Textile Mills Limited, situated at Naroda road, Ahmedabad. After recording the statement on oath of Mr. Surjeetsingh Macker, the Metropolitan Magistrate issued process of the above referred punishable offence. Certified copy of Power of Attorney produced by the complainant before the Metropolitan Magistrate Court is available at Annexure-B. It is a "specific Power of Attorney" by Executive Director for Continental Textile Mills Limited.
( 2 ) IT is say of the petitioner that he did appear before the learned Metropolitan Magistrate in the proceedings and submitted application to drop the proceedings for various grounds. But the learned Metropolitan Magistrate has rejected the application vide order dated 1st December, 2000. The petitioner felt that the order of learned Metropolitan Magistrate has been passed under some confusion or misunderstanding and therefore, another application was moved by the petitioner and the said application has also been dismissed because the learned Metropolitan Magistrate felt that "no rehearing is required".
( 3 ) TO appreciate the case of the present petitioner, it would be proper to state the case pleaded in the complaint in nutshell. It is submitted by the complainant that the petitioner - original accused Shri Bharatbhai K. Patel approached Shri C. L. Verma and intended to take over Continental Textiles Mills Limited situated at Naroda Road, Ahmedabad and this Bharatbhai K. Patel had agreed to pay all the accrued liability of the mill plus Rs. 11. 00 crores for taking over the said mill. Undisputedly, at that time, there was an Industrial Dispute pending between workers and the Mill Company. Mr. C. L. Verma personally was assured by Mr. Bharat K. Patel that he will be able to successfully negotiate with the workers of Continental Textile Mill Limited. Mr. C. L. Verma, Chairman, Continental Textile Mill Limited therefore vide letter dated 3/07/1998 directed Mr. Mann to issue a letter of authority on date 4/07/1998 with the terms as stated in the letter dated 3/07/1998. The accused Mr. Bharatbhai K. Patel paid Rs. 11. 00 lakhs by way of demand draft towards earnest money and also he issued a cheque of Rs. 1. 00 crore payable to Mr. C. L. Verma drawn in favour of the Bank of India, Saraspur Branch, Ahmedabad dated 14th July, 1998. The complainant, in short, has placed reliance mainly on three important aspects i. e. [i] letter dated 3/07/1998 and his meeting between Mr. C. L. Verma and the accused in the early days of July, 1998 and issuance of cheque of Rs. 1. 00 crore dated 14/07/1998, [ii] this cheque of Rs. 1. 00 crore was deposited on 14th July, 1998 with UCO Bank, Bhadra Branch, Ahmedabad in the account No. P1 of Shri C. L. Verma, and [iii] the said cheque was not honoured by the Bank of India and was returned on 2 2/07/1998. Thereafter, statutory notice has been served through Advocate. The complainant also relies on pleadings of Civil Suit No. 5192/1998 where the petitioner - original accused Shri Bharatbhai K. Patel has denied the liability of Rs. 1. 00 crore.
( 4 ) IT is important to refer the case put forward by the petitioner reflected in para-2. 1 to 2. 3 and para-3 of the petition. For the sake of convenience, I would like to quote :-"2. 1 the petitioner submits that Bharat Vijay Mills Limited was taken over by Continental Textile Mills Lim
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