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2017 Supreme(Guj) 1807

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
J.B. PARDIWALA, J.
Mahendra Kumar Kedarnath Modi & Ors. - Applicants
Versus
State of Gujarat & Anr. - Respondents
Criminal Misc. Application (For Quashing & Set Aside FIR/Order) No. 9134 of 2016 To Criminal Misc. Application No. 9163 of 2016
Decided On : 05-05-2017

Advocates:
Advocate Appeared:
For the Applicants : Mr. Deven Parikh, Mr. Chetan K. Pandya
For the Respondents: Mr. K.S. Nanavati, Nanavati Associates, Ms. Pathak, Ms. Thakore

Headnote:Negotiable Instruments Act, 1881 – Section 138 – Code of Criminal Procedure, 1973 – Section 482 – Dishonour of cheques – Magistrate is required to issue summons for attendance of accused only on examination of complaint and on satisfaction that there is sufficient ground for taking cognizance of offence and that he is competent to take such cognizance of offence – Once decision is taken and summons is issued, in absence of a power of review including inherent power to do so, remedy lies before he High Court under Section 482 Cr. P.C or under Article 227 of Constitution of India and not before Magistrate – Court at Vadodara has the territorial jurisdiction and complaints filed by the complainant for offence under Section 138 of N.I. Act are maintainable. (Paras 48 and 50)

JUDGMENT :

1. Since the issues raised in all the captioned applications are the same and the parties are also same, those were heard analogously and are being disposed of by this common judgment and order.

2. By these applications under section 482 of the Code of Criminal Procedure, 1973, the applicants-original accused Nos.2,3 and 4, seek to invoke the inherent powers of this Court praying for quashing of the thirty criminal cases registered in the court of the learned 12th Additional Chief Judicial Magistrate, Vadodara arising from the complaints filed under section 138 of the N.I. Act for the dishonour of the cheques.

3. For the sake of convenience, the Criminal Misc. Application No.9134 of 2016 is treated as the lead matter.

4. The applicants-original accused Nos.2,3 and 4 have prayed for the following reliefs;

“(A) To quash and set aside the complaint being Criminal Case No.49661 of 2015 pending before the Hon’ble Court of 12th Additional Chief Judicial Magistrate, Vadodara at Annexure-A and to pass all incidental and consequential orders as may be deemed fit and proper.

(B) To quash and set aside the bailable warrant issued on 05.03.2016 by the Hon’ble Court of 12th Additional chief Judicial Magistrate, Vadodara under section 138 of the Negotiable Instruments Act, 1881 Annexure-D to this application and to pass all incidental and consequential orders as may be deemed fit and proper.

(C) Pending admission, final hearing and disposal of this petition, to stay further proceedings of Criminal Case No.49661 of 2015 pending before the Hon’ble Court of 12th Additional Chief Judicial Magistrate, Vadodara.

(D) Pending admission, final hearing and disposal of this petition, to stay bailable warrant issued on 05.03.2016 in Criminal Case No.49661 of 2015 by the Hon’ble Court of 12th Additional chief Judicial Magistrate, Vadodara.

(E) To pass any other and further orders as may be deemed fit and proper in the facts and circumstances of the case and in the interest of justice.

(F) To provide for the cost of this application.”

5. It appears from the materials on record that the respondent No.2-Gujarat State Fertilizers & Chemicals Ltd. filed a complaint in the court of the learned 12th Additional Chief Judicial Magistrate, Vadodara for the dishonour of the cheques bearing numbers as stated in the complaint punishable under section 138 of the N.I. Act. The averments made in the complaint are as under;

“1. That the Complainant is a limited company registered under the provisions of Companies Act, 1956 having its registered office at P.O Fertilizer Nagar – 391 750, District Baroda, Gujarat and is engaged in the business of manufacturing and selling of fertilizers and industrial products including Corporation.

2. The Accused No.1 viz. Modipon Fibres Company is a division of Modipon Ltd., registered under the provisions of Companies Act, 1956, having its registered office at hapur Road, Modinagar-201 204, Gaziabad, Uttar Pradesh, India and engaged in the business of manufacturing and selling of Nylon Filament Yarn. The above accused Nos. 2 to 4 are the directors of the said No.1 company and are involved in day to day affairs and management of the said No.1 company. Accused No. 5 and 6 are the authorized signatories of M/s. Modipon Fibres Company, as division of Modipon Ltd and responsible to the conduct of the business of the said Company.

3. The complainant states that all the accused I.e. Accused Nos.2 to 4 are directors of the Accused No.1 Company and Accused No.5 and 6 are responsible signatories of the Accused No.1 Company. It is pertinent to note that all the said Accused when at the time of offence was committed were in charge of and were responsible for the conduct of the business of the Company.

It is further stated that being directors of the Accused No.1 Company, all the directors are taking part in day to day management of Accused No.1 C



















































































































































































































































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