IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
RAKESH KAINTHLA, J.
Vishal Gandhi – Appellant
Versus
M/s Symbiosis Pharmaceuticals and anr. - Respondents
Cr. MMO No. 1268 of 2022
Decided on : 22-11-2023
Section 482 - Quashing of Order - 397CrPC, 482CrPC - Summary of Acts and Sections: The court discussed the principles of exercising jurisdiction under Section 482 of Cr.P.C. as laid down by the Hon’ble Supreme Court in Supriya Jain v. State of Haryana, (2023) 7 SCC 711: 2023 SCC OnLine SC 765, and in Gulam Mustafa v. State of Karnataka, 2023 SCC OnLine SC 603. It also referred to the judgment in CBI v. Aryan Singh, 2023 SCC OnLine SC 379, which emphasized that the High Court cannot conduct a mini-trial while exercising jurisdiction under Section 482 of Cr.P.C. The court also cited the Allahabad High Court's decision in Gulshan Seth versus Additional Chief Magistrate and another, (2019) 4 CIVIL COURT CASES 508 = (2019) 4 CriCC 151, and the Supreme Court's decision in M/s MMTC Limited versus M/s. Medchl Chemicals & Pharma (P) Ltd., 2001 STPL 14773 SC. The court highlighted the legal principles to be borne in mind while exercising the power under Section 482 of Cr.P.C. and emphasized that the power should be exercised sparingly and with circumspection. It also noted that the court cannot conduct a mini-trial and must consider whether there is sufficient material to proceed further against the accused. The court also discussed the permissibility of filing a single complaint for multiple dishonoured cheques and the authorization requirements for filing a complaint. The judgment also addressed the issue of signatures on the cheques, emphasizing that it is a matter to be seen after the trial and cannot be adjudicated at the present stage.
Fact of the Case:
The complainant, a proprietorship firm dealing in the manufacturing of drugs, filed a complaint against the accused, who had issued three cheques that were returned due to insufficient funds. The complainant requested payment and served legal notices, but no reply was received. The learned Trial Court found sufficient reasons to proceed against the accused and ordered the issuance of the summons. The accused filed a petition under Section 482 of Cr.P.C. to quash the order passed by the learned JMFC, Nahan.
Finding of the Court:
The court dismissed the petition, stating that it did not satisfy the requirement of Section 482 of Cr.P.C. and directed the parties to appear before the learned Trial Court.
Issues: The issues involved the permissibility of filing a single complaint for multiple dishonoured cheques, the authorization requirements for filing a complaint, and the validity of the signatures on the cheques.
Ratio Decidendi: The court emphasized the legal principles to be borne in mind while exercising the power under Section 482 of Cr.P.C., including the need to exercise the power sparingly and with circumspection, and the prohibition against conducting a mini-trial. The court also discussed the permissibility of filing a single complaint for multiple dishonoured cheques and the authorization requirements for filing a complaint. The court also addressed the issue of signatures on the cheques, emphasizing that it is a matter to be seen after the trial and cannot be adjudicated at the present stage.
Final Decision: The petition was dismissed, and the parties were directed to appear before the learned Trial Court.
JUDGMENT :
Rakesh Kainthla, J.
The present petition has been filed under Section 482 of Cr.P.C. for quashing the order passed by learned JMFC, Nahan in Case No. 33 of 2020 titled M/s Symbiosis Pharmaceuticals versus M/s Dharam Healthcare. The complainant filed a complaint before the learned JMFC asserting that the complainant is a proprietorship firm dealing in the manufacturing of drugs under the name and style of M/s Symbiosis Pharmaceuticals Private Limited at Kala Amb, District Sirmaur. The accused used to purchase the drugs from the complainant. The accused issued three cheques drawn on State Bank of India in favour of the complainant. The accused no. 2 had issued the cheques being the Director of the Company with the assurance that the cheques would be encashed on presentation. The accused no.1 is also a Director of the Company and is In-charge of and is responsible for the conduct of the business of the company. The complainant presented the cheques but the cheques were returned with the remarks ‘Funds Insufficient’. The complainant requested the accused to make the payment but no payment was made; hence, the complainant served three legal notices on 30.11.2019, upon all the accused but no reply was sent. Hence, a complaint was filed before the learned Trial Court to take action as per the law.
2. The Learned Trial Court found sufficient reasons to proceed against the accused and ordered the issuance of the summons on 14.01.2020.
3. Being aggrieved from the order passed by learned JMFC, Nahan, the present petition has been filed. It has been asserted that the order is based upon surmises and conjectures. The learned JMFC, Nahan had not applied its mind. The complaint on behalf of the company can be filed by the Managing Director/Director of the Company, whereas, the authorization is in the name of Sheetal Sharma. The authorisation does not show him to be the Director of the Company. The complainant claims to be a proprietorship concern and cannot have any Director. Three separate notices were sent and a joint complaint was filed, which is not permissible. The cheques do not bear the signatures of the petitioner and the learned Trial Court erred in summoning him. Therefore, it was prayed that the present petition be allowed and the order passed by learned JMFC, Nahan, be set aside.
4. I have heard Mr Dinesh Kumar, learned counsel for the petitioner/accused, Ms Shalini Thakur, learned counsel for respondent no.1/complainant and Ms Shashi Kiran, learned counsel for respondent no.2/original accused.
5. Mr Dinesh Kumar, learned counsel for the petitioner submitted that the complainant has described itself to be a proprietorship concern and also stated that Sheetal Sharma is one of the Directors, who was authorized by the complainant to file the complaint. This is not permissible because the Director can be of a Company and not of a proprietorship concern. Three cheques were dishonoured and three separate notices were issued. A single complaint was filed, which is not permissible. Hence, he prayed that the present petition be allowed.
6. Ms Shalini Thakur, learned counsel for respondent no.1/complainant submitted that it was wrongly mentioned in the complaint that the complainant is proprietorship concerned. It is apparent from the name of the complainant that it is a private limited company. It had authorized Sheetal Sharma to file the present complaint. The consolidated complaint can be filed in respect of three cheques, therefore, she prayed that the present petition be dismissed.
7. Ms Shashi Kiran, learned counsel for respondent no. 2/accused supported the submission of Mr Dinesh Kumar, learned counsel for the petitioner/accused.
8. I have given considerable thought to the rival submissions at the bar and have gone through the records carefully.
9. The principles of exercising the jurisdiction under Section 482 of Cr.P.C. were laid down by the Hon’ble Supreme Court in Supriya Jain v. State of Haryana, (2023) 7 SCC 711: 2023 SCC On
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AI
LAW POINTJoint complaint by two or more persons against an accused is not maintainable in dishonour of cheques.
The court reiterated that issues around cheque liability under Section 138 NI Act must be decided at trial, underscoring the necessity for allegations in complaints to be accepted as true at the quas....
The court emphasized the need for uncontrovertible material to support contentions raised in applications and held that the complaints should not be quashed at this stage.
The main legal point established in the judgment is that disputed questions of facts and alleged financial fraud require a full-fledged trial and cannot be decided at the stage of quashing the compla....
(1) Dishonour of cheques – Under Section 138 of NI Act, a separate cause of action arises upon each dishonour of a cheque provided statutory sequence of presentation, dishonour, notice, and failure t....
A single complaint for dishonour of multiple cheques is maintainable under Section 138 of the NI Act if they arise from a single transaction, and account blockage does not exempt liability.
Dishonour of cheque – Consequences of scuttling criminal process at a pre-trial stage can be grave and irreparable.
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