The court's decision emphasized the strict conditions for prosecuting under Section 138 of the Negotiable Instruments Act, 1881, based on the definition of 'payee' and 'holder in due course'.

ORDER :

Issue Rule returnable forthwith. Learned advocates appearing for the respective parties waives service of notice of rule on behalf of the respective respondents.

1. Heard Mr. Aftabhusen Ansari, learned advocate appearing for the applicants, Ms. Maithili D. Mehta, learned Additional Public Prosecutor appearing for the respondent No.1 - State and Ms. Roopal R. Patel, learned advocate appearing for the respondent No.2.

2. By way of present application, the applicants have prayed for the following reliefs :-

"A) YOUR LORDSHIPS may kindly be pleased to admit and allow this application;

B) YOUR LORDSHIPS may kindly be pleased to quash and set aside the Criminal Case No.47918 of 2017 pending before the Chief Metropolitan Magistrate Court No.36, Ahmedabad, orders dated 18.7.2017 and 26.7.2017 passed therein and all proceedings arising out of the said complaint;

C) YOUR LORDSHIP may kindly be pleased to order that pending admission, hearing and/or final disposal of this application, further proceedings into the Criminal Case No. 47918 of 2017 pending before the Chief Metropolitan Magistrate Court No.36, Ahmedabad, orders dated 18.7.2017 and 26.7.2017 passed therein and all proceedings arising out of the said complaint be stayed in the interest of justice;

AND

D) YOUR LORDSHIPS may be pleased to grant such other and further relief(s) as may deed just and proper in the facts and circumstances of the case."

3. By way of present application, the applicants herein have prayed for quashing of criminal case being Criminal Case No.47918 of 2017 pending before the Chief Metropolitan Magistrate Court No.36, Ahmedabad, wherein process has been issued pursuant to the complaint filed by the respondent No.2 on 26.07.2017, which is duly produced on record at page No.9 Annexure-A and the order issuing process dated 06.09.2017 passed below Exh.1 is duly produced on record at page No.14.

4. Briefly stated that the complainant is the branch manager of Vijay Cooperative Bank Ltd., Odhav Branch, Ahmedabad, which sanctioned Hypo Cash Credit Facility in favour of the applicants. It is alleged that arrears of this loan was paid through cheque which bounced with an endorsement 'Insufficient Funds'. The cheque in question came to be issued by the applicant No.1 in favour of 'Balaji Textiles' on 22.05.2017 being cheque No.000023 through joint account held by the applicant No.1 and applicant No.2. The said cheque came to be returned with an endorsement of 'insufficient funds', which was deposited with the Bank of Baroda by Account Payee Cheque. Statutory Notice under Section 138 of the Negotiable Instruments Act, 1881 came to be issued to the applicants on 05.06.2017 by the respondent No.2 - original complainant. The respondent No.2 filed the impugned complaint being Criminal Case No.47918 of 2017 and process came to be issued on 16.07.2017.

5. Being aggrieved by the aforesaid the applicants No.1 and 2 have approached this Court seeking quashing of impugned complaint filed by the respondent No.2-original complainant.

SUBMISSIONS ON BEHALF OF THE APPLICANTS :-

6. Mr. Aftabhusen Ansari, learned advocate appearing for the applicants submitted that the impugned complaint filed at the instance of complainant - respondent No.2 Bank is not maintainable against the applicants. Mr. Aftabhusen Ansari, learned advocate appearing for the applicants submitted that the cheque in question which is duly produced on record at page No.20 dated 22.05.2017 being cheque No.000023 came to be issued by the applicant No.1. through joint account held by the applicant No.1 and applicant No.2 in favour of 'Balaji Textiles'. The said cheque came to be returned with an endorsement of 'insufficient funds', which was deposited with the Bank of Baroda by Account Payee Cheque. The said cheque was never issued in favour of the complainant and therefore, it is not open for the complainant to initiate proceedings under Section 138 qua the applicants herein. In view of above, criminal complaint filed be