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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
A.S. SUPEHIA, J.
Garnet Speciality Paper Ltd. - Appellant
Vs.
State Of Gujarat - Respondent
R/criminal Misc. Application No. 34217 of 2016
Decided on : 08-01-2019

Advocates:
Advocate Appeared:
For the Appellant :D.K. Puj, Advocate, Zubin F. Bharda, Advocate
For the Respondent: Public Prosecutor, Rule Served By DS

Headnote:

Criminal Procedure, 1973 – Section 482 – Quash of Criminal Proceedings – Negotiable Instruments Act, 1881 – Section 138 – Liability to pay the debt fastened upon Accused No1 only and applicant No.3 absolutely unconcerned with controversy neither a party to original complaint nor she was in any way connected with accused No.1 Company issued Cheque from joint account – Whether would not be made liable for discharging any liability either of Company or of her husband – Held, Applicant No.3, who is not the signatory of the cheque issued by Applicant No. 3 cannot be held liable for the offence under 138 of Act, 1881 – Proceedings filed under Section 138 cannot be used as an arm twisting tactics to recover the amount allegedly due from the appellant – Culpability attached to dishonour of a cheque can, in no case “except in case of section 141 of the N.I. Act” be extended to those on whose behalf the cheque is issued – petition allowed [Para 14, 16, 17]

Facts of the Case:

Quash of Criminal Proceedings – Negotiable Instruments Act, 1881 – Section 138 – Liability to pay the debt fastened upon Accused No1 only and applicant No.3 absolutely unconcerned with controversy neither a party to original complaint nor she was in any way connected with accused No.1 Company issued Cheque from joint account – Whether would not be made liable for discharging any liability either of Company or of her husband

Finding of Court:

Applicant No.3, who is not the signatory of the cheque issued by Applicant No. 3 cannot be held liable for the offence under 138 of Act, 1881 – Proceedings filed under Section 138 cannot be used as an arm twisting tactics to recover the amount allegedly due from the appellant – Culpability attached to dishonour of a cheque can, in no case “except in case of section 141 of the N.I. Act” be extended to those on whose behalf the cheque is issued.

Result: Petition allowed

JUDGMENT :

A.S. SUPEHIA, J.

1. In the present application the applicants have prayed for quashing and set aside Criminal Complaint No 2750 of 2016 filed before Judicial Magistrate First Class at Vapi under section 482 of the Code of Criminal Procedure, 1973 (for short “Cr.P.C.”).

2. The brief facts of the case are as under:

2.1 The respondent No.2 has filed the impugned Criminal Complaint No.2750 of 2016 before Judicial Magistrate First Class at Vapi alleging the offence punishable under section 138 of the Negotiable Instruments Act, 1881 (the N.I. Act) for the return of cheque No.398111 dated 01.07.2016 for Rs.22,50,000/drawn on Axis Bank, Rajkot branch by one Sheetalbhai Shashikant Mehta from his personal account, for which he has also been impleaded as accused No.3 in the aforesaid Criminal Complaint.

2.2 It is the case of the applicants that the respondent No. 2 original complainant has alleged in the Criminal Complaint No.2750 of 2016 that the respondent No.2 has initially filed four complaints against the applicants No.1 and 2 as well as Sheetalbhai Shashikant Mehta, the details of which are as under:

Criminal Complaint No.

Cheque No.

Amount (Rs.)

1815 of 2014

000481

5,00,000/-

1816 of 2014

000487

5,00,000/-

 

000488

5,00,000/-

000489

5,00,000/-

 

000490

5,00,000/-

 

000491

5,00,000/-

 

1818 of 2014

000476

5,00,000/-

1819 of 2014

000479

5,00,000/-

Total

 

40,00,000/-

2.3 The said Criminal Complaints were not proceeded further in view of the fact that the settlement was arrived at between the complainant and the accused in the said four complaints and Memorandum of Understanding (MOU) was executed between them on 12.02.2016 and in view of the said settlement, Sheetalbhai Shashikant Mehtaaccused No.3 has given a cheque of Rs.22,50,000/out of his own personal Bank Account. The said cheque was however, given by the said Sheetalbhai Shashikant Mehtaaccused No.3 from his joint Account with his wife namely Meeraben Sheetalbhai Mehtaapplicant No.3. It was understood between the parties in the said MOU that the cheque given by Sheetalbhai Shashikant Mehta would be realized on its presentation in the Bank and if, the said cheque would be returned, in that case the complainant would be entitled to file Criminal Complaint against the accused Nos.1 to 3 in the said complaints under section 138 of the N.I. Act as well as under Sections 406 and 420 of the Indian Penal Code, 1860. The complainant has thereafter, presented the said cheque in her bank account with DCB Bank Ltd, Vapi Branch, Vapi and the said cheque was returned uncleared along with cheque return memo dated 25.08.2016. The respondent No.2 has thereafter, issued statutory notice on 06.09.2016 to all the four accused. However, notice issued on accused No.1 Company could not be served on the ground that the Company is not in existence at the given address. The accused Nos.3 and 4 have refused the said notice as stated in the complaint and the notice was served on the accused No.2 on 10.09.2016.

Since the amount of Rs.22,50,000/could not be paid by any of the four accused, the Criminal Complaint No.2750 of 2016 was filed by the respondent No.2.

3. Learned advocate Mr.D.K.Puj, appearing for the applicants, has submitted that respondent No.2 has filed absolutely false, frivolous and vexatious Criminal Complaint against the applicants. There is no truth or substance in the said complaint. It is further submitted by him that applicants No.1 and 2 were duly absolved from their liabilities no sooner, the settlement was arrived at and earlier complaints filed against them were withdrawn. The accused No.3 Sheetalbhai Shashikant Mehta has undertaken the said liability and the cheque was also issued by him from his personal account. Though, the said cheque was returned uncleared. The liability to pay the debt was fastened upon him only









































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