Judges : K.PADMANABHAN NAIR,V.RAMKUMAR
Mymoonath Beevi - Appellant
Versus
State of Kerala, Rep.by the Public Prosecutor - Respondent
Case No : Crl.M.C.No.3235 of 2004
Decided On : 08/23/2005
Advocates Appeared :
For the Petitioner: Philip T. Varghese, Thomas T. Varghese, Advocates. For the Respondents: R1, Sujith Mathew Jose, Public Prosecutor, R2, Nagaraj Narayanan, Saijo Hassan, Saby Sreedharan, Vimal Kumar, A.V., A.G. Girish Kumar, Advocates.
Criminal Procedure Code, 1973 - Sections 200, 203, 204 & 482 - Negotiable Instruments Act 1881 - Sections 141(1) & (2) & 138 - Petitioner in all these criminal miscellaneous cases is the common 3rd accused in 8 private complaints filed before the Judicial Magistrate of First Class-I - Common 2nd respondent in all these Crl.M.Cs. is the common complainant in all the private complaints referred to above - Said complainant is a proprietary concern by name "International Trade Links" - As per the said private complaints produced as Annexure A1 in each of these cases, the 2nd respondent herein has sought to prosecute a partnership firm by name "M/s. Star Trading", Kochi, which is the 1st accused - One Ali and his wife, who is the petitioner herein, are the Managing Partner and Partner respectively of the said firm and they are arrayed as accused Nos.2 and 3 respectively - Offence alleged is one punishable under S.138 of the Negotiable Instruments Act, 1881 - Held, Magistrates while taking cognizance of the offence on a complaint which falls short of the necessary averment in terms of S. 141 of the Act - But paragraph 2 of that decision indicates there was in fact an averment in the complaint in terms of S.141 of the Act - Observations in paragraph 3 were not warranted. With a view to steer clear of any confusion which those observations may create, we make it clear that the observations in paragraph 3 of Biju Jacob's case will apply only in those cases where the complaint on the face of it does not contain an averment in terms of S.141 of the Act - Court is not persuaded to agree with the submissions on behalf of the petitioner that the petitioner is not liable to be proceeded against for the offence punishable under S.138 of the Act. - Crl.M.Cs. Dismissed
Ramkumar, J.
The common petitioner in all these criminal miscellaneous cases is the common 3rd accused in 8 private complaints filled before the Judicial Magistrate of First Class-I, Ernakulam. The common 2nd respondent in all these Crl.M.s. is the common complainant in all the private complaints referred to above. The said complainant is a proprietary concern by name “International Trade Linksâ€, Ernakulam. As per the said private complaints produced as Annexure A1 in each of these cases, the 2nd respondent herein has sought to prosecute a partnership firm by name “M/s. Star Tradingâ€, Kochi, which is the 1st accused. One Ali and his wife, who is the petitioner herein, are the Managing Partner and Partner respectively of the said firm and they are arrayed as accused Nos.2 and 3 respectively. The offence alleged is one punishable under sec.138 of the Negotiable Instruments Act, 1881 (“the Act†for short).
2. In each of the said private complaints, the complainant has inter alia alleged that the 2nd and 3rd accused who are the Managing Partner and Partner respectively of the 1st accused firm are collectively looking after the affairs of the firm, that they are jointly and severally responsible for the business transactions of the said firm and that they are jointly liable for the consequences arising from the dishonour of the 8 cheques in question.
3. On receipt of summons from the court below, the petitioner herein entered appearance before court and filed applications requesting the Magistrate to drop the proceedings so far as they relate to the petitioner herein contending that she is not a signatory to the cheques in question and that she has no direct involvement in the business of the 1st accused firm. There is no dispute that when the above applications were filed by the petitioner, the decision of the Hon’ble Supreme Court in K.M. Mathew, v. State of Kerala – AIR 1992 S.C. 2206 = 1992 (1) KLT 1 entitling the Magistrate to drop the proceedings if the complaint on the face of it does not disclose any offence against the accused notwithstanding the issue of process against the accused, was holding the field. As per separate but identical orders dt.2.9.2004, the learned Magistrate dismissed the applications holding inter alia that the issues cannot be adjudicated until adducing evidence, but reserving the right of the petitioner to urge her objection at a later stage. The relevant portion of the Order of the Magistrate reads as follows:-
“The Point:- Head. In fact 1st accused firm is a partnership firm wherein 3rd accused is a partner. According to partnership laws, a partner is the agent of other partner and the firm. Therefore, issuing cheque by a partner on behalf of firm binds other partners as well though not a signatory thereon. Sec.27 of N.I. Act contemplated that issuing Negotiable Instrument by an agent binds the principal as well.
4. Moreover sleeping partners is a matter of fact. It requires evidence. Therefore the issues could not be adjudicated until adducing evidence.
5. In the aforesaid reasons, this petition is disposed of reserving the right of 3rd accused to urge this objection at later stage.â€
4. K.K. Mathew’s case (supra) has since been overruled by a Bench of three Judges of the Supreme Court in Adalat Prasad v. Rooplal Jindal – 2004 AIR SCW 5174 wherein it was held that once cognizance of an offence has been taken and summons issued, the Magistrate has no power to recall the summons and drop the proceedings and that to do so would amount to review of the earlier order which course is not contemplated by the Code of Criminal Procedure. It was further held that the remedy of the accused in such a case would be to invoke sec.482 Cr.P.C. The said decision has been approved by another Bench of three Judges of the Supreme Court in Subramanium Sethuraman v. State of Maharashtra – 2004 AIR SCW 5326 in which a request to reconsider Adalat Prasad’s case was turned down. With these
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