1. The petitioner, who is the accused in 20 criminal cases instituted on the basis of private complaints filed by the 1st respondent, as complainant, alleging the offence punishable under Section 138 of the Negotiable Instruments Act (hereinafter referred to as 'the N.I.Act), consequent to the dishonour of 57 cheques for a total amount of Rs.1,79,86,357/-, has come up with the prayer for the intervention of this Court under Section 482 Cr.P.C., for getting the complaints in those 20 cases pending on the files of the Judicial First Class Magistrate's Courts-III and IV Kochi, quashed.

2. According to the petitioner, the said cases were taken cognizance of, and the same are pending trial before the Judicial First Class Magistrate's Court-III, Kochi as C.C.Nos.1208, 1209, 1210, 1211 and 1212 of 2007, and before the Judicial First Class Magistrate's Court-IV, Kochi as C.C.Nos.1790, 1791, 1792, 1793, 1794, 1795, 1796,1824, 1825, 1826, 1827, 1828, 1829,1830 and 1831 of 2007.

3. The gist of those complaints is that the petitioner had issued all those 57 cheques dated 28.9.2006 to the 1st respondent in discharge of the outstanding liability of the petitioner to the 1st respondent, and when all those cheques were presented for collection, the same were returned dishonoured with the dictum “Payment stopped by the drawer”. A composite notice of demand dated 9.10.2006 was allegedly issued. Even though a detailed reply notice was issued denying the liability, the amounts covered by the said cheques were not paid within the statutory period, and hence those complaints.

4. According to the petitioner, the petitioner was the Re- Distribution Stockist(RDS) of watches manufactured by the 1st respondent Company, for the State of Kerala, for the period from 1992 till 2006. The petitioner was having running credit facility with the 1st respondent Company, till 30.09.2003 and thereafter the business was being done on “cash and carry” basis. According to the petitioner, during the period in which credit facility was there, the 1st respondent Company used to collect undated cheques towards amounts covered by distinct invoices with respect to various consignments, for securing payment of amounts covered by such invoices. The said 57 cheques in question were issued to the 1st respondent as undated cheques during the period prior to 30.09.2003, as mentioned above. When the 1st respondent stopped credit facility to the RDSs substantial amounts were due from all such RDSs, a major portion of which being interest accrued on part-payment. According to the petitioner, a settlement was arrived at between the RDSs from South India and the Chairman of the 1st respondent at Chennai on 19.07.2004, in which waiver of interest on delayed payments was assured to be considered and it was agreed upon to conduct the joint audit of accounts of the RDSs through the respective branch offices in the States concerned. Accordingly, joint audit of accounts of the petitioner was conducted at Kochi, and the whole outstanding liability of the petitioner was arrived at Rs.44,19 lakhs for settlement, subject to the approval of the Board for debit of Rs.34.20 lakhs due as interest on delayed payment. All the said amounts arrived at in the settlement were paid by the petitioner and all such payments were duly accepted by the 1st respondent Company.

5. It is the specific case of the petitioner that the Chairman and Managing Director (C&MD) of M/s HMT Watches Ltd. which is the holding company of the 1st respondent Company constituted a 'High-level Settlement Committee' consisting of Sri.Jolly Peter, General Manager (Finance), HMT Ltd. as Team Manager along with Sri.P.K.Narayana Moorthi, General Manager (Marketing), HMT Ltd. and Sri.S. Venkanna, Assistant General Manager (Finance) HMT Industries, as members. In the mean time, the petitioner had effected a total payment of Rs.18.19 lakhs towards the total amount of Rs.44.19 lakhs arrived at in the Chennai settlement. The Settlement