2004 Supreme(Gau) 491
IN THE HIGH COURT OF GAUHATI
Iqbal Ahmed Ansari, J.
Nilam Devi Bagaria
Vs.
Vimal Kr. Todi
Criminal Revision No. 262 of 2003
Decided On: 27.08.2004
Advocate Appeared:
For Appellant/Petitioner/Plaintiff: G.N. Sahewala, A.K. Goswami, M. Goswami and Md. Aslam, Advs.
For Respondents/Defendant: J.K. Choudhury and B.M. Choudhury, Advs.
The main legal point established in the judgment is the limited scope of quashing criminal proceedings and the presumption of the act committed by the holder of the power of attorney.
Headnote:
Negotiable Instruments Act - Offences under Section 138read with Section 142 - [138, 142] - The court discussed the principles laid down in the case of State of Haryana and Ors. v. Bhajanlal and R.P. Kappor v. State of Punjab and Bhajanlal, emphasizing that the power of quashing a criminal proceeding should be exercised sparingly and with circumspection. The court also highlighted the provisions of the Powers of Attorney Act, 1882, and the special provisions of the Negotiable Instruments Act regarding giving notices and the liability of the principal for the act of the attorney.
Fact of the Case:
The complainant firm alleged that the accused-petitioner's business concern failed to supply rice for the entire amount received in advance, leading to a remaining due amount. The accused-petitioner issued a post-dated cheque to refund the excess advance amount, which was dishonoured. The accused-petitioner denied the issuance of the cheque and claimed that it was lost by her attorney.
Finding of the Court:
The court found that the complaint disclosed prima facie commission of offences under Section 138 read with Section 142 of the NI Act. The court emphasized that the truthfulness or otherwise of the allegations and the probability of the defense plea can be determined only by effective investigation or at the trial.
Issues: The issues included the liability of the accused-petitioner for the acts of her attorney, the exercise of power of quashing a criminal proceeding, and the responsibility of the accused-petitioner for the conduct of her business concern.
Ratio Decidendi: The court held that the accused-petitioner, as the proprietress of the business concern, was fully responsible for the conduct of the business and the acts of her attorney. The court also emphasized the limited scope of quashing criminal proceedings and the presumption of the act committed by the holder of the power of attorney.
Final Decision: The court dismissed the revision, upholding the impugned order and the proceeding of the Complaint Case No. 26/2003.
I.A. Ansari, J.
1. By the impugned order dated 30.10.2003, passed in Complaint Case No. 26/2003, the learned Chief Judicial Magistrate, Sonitpur, Tezpur, while taking cognizance of offences under Section 138read with Section 142 of the Negotiable Instruments Act (hereinafter referred to as "the NI Act") against the accused-petitioner and one Pawan Kumar More, directed issuance of summons to the accused-petitioner. With the help of the revision present, the petitioner, who is an accused in the said Complaint Case, has sought for setting aside the impugned order and also for quashing the entire proceeding of the Complaint Case No. 26/2003 aforementioned.
2. I have heard Mr. P Bora, learned counsel for the accused-petitioner, and Mr. JM Choudhury, learned senior counsel, assisted by Mr. BM Choudhury, learned counsel for the opposite party. I have also heard Mr. FH Laskar, learned Additional Public Prosecutor, Assam.
3. The material facts, as emerge from the record, and the various stages, which have led to the present revision, may, in brief, be set out as follows:
(i) The opposite party herein, namely, Vimal Kumar Todi, a partner of M/s Sunrise Traders, instituted the Complaint Case No. 26/2003 aforementioned, the case of the complainant being, in brief, thus : The accused-petitioner No. 2, namely, Pawan Kumar More is the duly constituted attorney of M/s Nav Durga Bhandar, situated at Guwahati, of which the accused-petitioner No. 1, namely, Nilam Devi Begum (i.e., the present revision petitioner) is the proprietress. The complainant firm had business deals of supply of rice with M/s Nav Durga Bhandar aforementioned. The said proprietary business concern of the accused No. 1 received through cheques, between 19-2-2001 and 23-3-2001, advance payments of diverse sums of money from the complainant firm on the basis of assurance given by the said proprietary concern of the accused No. 1 to supply rice to the complainant firm at Tezpur. Though, in terms of the assurance so given and advance payments received, M/s Nav Durga Bhandar aforementioned supplied rice, during the year 2001, by issuing credit memo and road challans to the complainant firm, it failed to supply the rice for the entire amount, which it had received, in advance, from the complainant firm by cheques. Against the total sum of Rs. 38,42,000 received, between 19-2-2001 and 23-3-2001, by the said business concern of accused No. 1, it supplied rice worth Rs. 19,44,250 and also returned, through cheques, a sum of Rs. 5,92,000 out of the total amount of Rs. 38,42,000 aforementioned already received. Thus, a sum of Rs. 13,05,750 remained due and payable by the said business concern of the accused No. 1 to the complainant firm. The transactions, which had so taken place between the parties concerned, are duly reflected in the books of account of the complainant firm, which stands audited by Chartered Accountant. On repeated demands made by the complainant firm to repay the balance amount of Rs. 13,03,750, the accused No. 2, in order to refund the excess advance amount received from the complainant firm, drew and issued, in the name of the complainant firm, a postdated account payee cheque bearing No. 936216, dated 27-11-2002, for Rs. 13 lakh, at State Bank of India, Tezpur Branch, from the account belong to M/s Nav Durga Bhandar, the said post-dated cheque having been delivered by the accused No. 2 to the complainant firm, at Tezpur, in the month of November 2001. When the complainant firm deposited the said cheque for collection, the same was dishonoured and returned unpaid by the SBI, Tezpur Branch, along with a memorandum, dated 27-11-2002, showing that the cheque was dishonoured due to insufficiency of fund. The complainant, once again, presented on 4-12-2002, the said cheque for collection at the said bank, but the same was, once again, dishonoured and returned unpaid by the said bank with a memorandum dated 4-12-2004, on the ground of insufficiency of fund. The com