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1990 Supreme(Ker) 357

Judges : THULASIDAS
Calcutta Sanitary Wares - Appellant
Versus
Jacob - Respondent
Case No : Crl.M.C.222 of 1990
Decided On : 10/29/1990
Advocates Appeared :
K. Jagadisachandran Nair For Petitioners C. Pius Kuriakose For Respondent

The legal principle established is that the dishonour of cheques followed by notices of demand and failure to pay, as per the provisions of S.138 of Act 66 of 1988, constitute a prima facie case, and the stop memo countermanding the payment does not affect the right to initiate proceedings under the Act.

Headnote:

S.138 of Act 66 of 1988 - Dishonoured Cheques - Legal Provisions and Court's Decision

Fact of the Case:

The petitions sought to quash complaints and related proceedings against the petitioners for dishonoured cheques issued by the 2nd petitioner as a partner of the 1st petitioner firm in favor of the respondent.

Finding of the Court:

The court found that the complaints made out a prima facie case against the petitioners and that the relevant legal provisions had been complied with by the respondent before filing the complaints. The court dismissed the petitions, stating that there was a prima facie case against the petitioners.

Issues: The issues revolved around the dishonoured cheques, compliance with legal provisions, and the petitioners' attempt to quash the complaints and related proceedings.

Ratio Decidendi: The court held that the allegations in the complaints made out a prima facie case against the petitioners and that the respondent had followed the relevant legal provisions before filing the complaints. The court emphasized that the stop memo countermanding the payment did not affect the respondent's right to initiate proceedings under the Act.

Final Decision: The court dismissed the petitions, stating that there was a prima facie case against the petitioners as alleged.

Judgment :-

These petitions filed under S.482 Cr.P.C. are to quash the complaints and related proceedings in C.C.No. 22 of 1990 and C.C.No.23 of 1990 pending against the petitioners before the Additional Chief Judicial Magistrate's Court, Ernakulam. The complaints were filed under S.138 of Act 66 of 1988 in respect of two cheques which the 2nd petitioner had issued as partner of the 1st petitioner, firm, in favour of the respondent. The cheques were dishonoured upon presentation. As required notices were issued to the petitioners. A reply was sent by the 2nd petitioner but payment was not made. Complaints were, therefore, laid as warranted by the provisions of the above Act.

2. The allegations in the complaints in my view do make out a prima facie case against the petitioners. Before filing the complaints respondent had taken care to abide by the relevant legal provisions. Indeed, it is not the case of the petitioner that no amount is due to the respondent. The issuance of cheques and their dishonour followed by notices of demand and failure to pay, are not matters which had been challenged. That payment was countermanded by a stop memo is of no consequence. That hardly affects the right of the respondent to initiate proceedings under the Act. It has the same effect' as a closure of the account as far as he is concerned. The object of the provision cannot be allowed to be defeated by such ingenuous action.

3. I think, the prayer to quash the complaints and related proceedings is misconceived. Prima facie, there is case against the petitioners as alleged. This court cannot interfere at this stage. Crl.M.Cs. are dismissed.

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