This petition is filed under section 482 of Cr.P.C. to quash the complaint and order passed there on by the learned Magistrate in S.T. No: 624/2004 of C.J.M. Court, Kottayam. That complaint was filed against the petitioner alleging commission of offence punishable under section 138 of Negotiable Instruments Act. The learned Magistrate after recording the sworn statement and perusing the records issued process to the accused.

2. Petitioner contends that the cheque was issued by him to one Chithrabhanu and it was crossed by him noting "A/C Payee only". According to the petitioner, the said cheque was never intended to be negotiated. Annexure A3 is the copy of that cheque. The accused contends that contrary to the directions, the cheque was handed over by Chithrabhanu to the complainant. On coming to know of the fact, he issued notice to the drawee bank not to honour the cheque. It was also contended that there was sufficient funds in the account of the petitioner to honour the cheque.

3. The important question raised by the petitioner is that when two parallel transverse lines are put across a cheque and when it is noted 'A/C Payee only', is that cheque negotiable and whether such a payee gets authority to indorse so as to entitle the indorsee to prosecute the drawer of the cheque for offence under section 138 of N.I. Act. Since the question involved is found to be of general importance, Sri. Bechu Kurian was appointed by this Court as Amicus Curiae. Sri. Bechu Kurian and the learned counsel appearing for both sides addressed their arguments at length.

4. To understand the various terms which are relevant for consideration it is better that those relevant provisions are extracted here. Section 6 of Negotiable Instruments Act defines 'cheque' as:

"A "cheque" is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand and it includes the electronic image of a truncated cheque and a cheque in the electronic form."(explanation is omitted as unnecessary)'Bill of exchange' is defined in section 5 of N.I.Act as:

"A "bill of exchange" is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument. A promise or order to pay is not "conditional", within the meaning of this section and section 4, by reason of the time for payment of the amount or any instalment thereof being expressed to be on the lapse of a certain period after the occurrence of a specified event which, according to the ordinary expectation of mankind, is certain to happen, although the time of its happening may be uncertain. The sum payable may be "certain", within the meaning of this section and section 4, although it includes future interest or is payable at an indicated rate of exchange, or is according to the course of exchange, and although the instrument provides that, on default of payment of an instalment, the balance unpaid shall become due. The person to whom it is clear that the direction is given or that payment is to be made may be a "certain person", within the meaning of this section and section 4, although he is mis-named or designated by description only. "Section 7 of N.I. Act defines 'Drawer', 'Drawee' as:

"The maker of bill of exchange or cheque is called the "drawer"; the person thereby directed to pay is called the "drawee".

5. Proviso (a) to Section 138 of N.I. Act makes it mandatory that the cheque should be presented to the bank within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier. Proviso (b) to that section mandates that the payee or the holder in due course of the cheque, as the case may be, should make a demand for the payment of the said amount of money by giving a notice in writing, to the drawer of the cheque, within thirty days of the receipt of inform