IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
Rakesh Kainthla, J.
Sumit Juneja - Petitioner
Vs.
State of H.P. & others - Respondents
Cr. MMO No. 271 of 2023
Decided On : 12-01-2024
N.I. Act - Quashing of Complaint - Section 138 of Negotiable Instruments Act - [FACT OF THE CASE] The respondent filed a complaint against the petitioner for dishonoring cheques. The Trial Court found sufficient reasons to summon the accused. The accused approached the Court for quashing the order and the complaint, asserting that the goods supplied were of inferior quality and the complaint was wrongly filed. [FINDING OF THE COURT] The Court considered the principles of exercising jurisdiction under Section 482 of Cr.P.C. and held that the summoning order was valid. [ISSUES] The issues included the necessity of conducting an inquiry under Section 202 of Cr.P.C., the settlement between the parties, and the presumption regarding the consideration of the cheque. [RATIO DECIDENDI] The Court emphasized that the power under Section 482 of Cr.P.C. can be exercised to prevent the abuse of process or secure the ends of justice. The Court can quash the F.I.R. if the allegations do not constitute an offence or make out a case against the accused. [FINAL DECISION] The petition was dismissed. The Court held that the summoning order was valid and the petition failed.
JUDGMENT :
Rakesh Kainthla, J.
The petitioner has filed the present petition for quashing the complaint titled M/S PDC Healthcare versus M/S Saintlife Medicine Pvt. Ltd. & another bearing complaint No. NIA/49/2018, pending before the learned Judicial Magistrate First Class (JMFC), Paonta Sahib, District Sirmour, HP and all consequent proceedings arising there from and summoning order dated 03.02.2018.
2. Briefly stated, the respondent No.2 (complainant before the learned Trial Court) filed a complaint against the petitioner (accused No. 2 before the learned Trial Court) for the commission of an offence punishable under Section 138 of the Negotiable Instruments Act. (Parties shall hereinafter be referred to in the same manner as they were arrayed before the learned Trial Court for convenience). It was asserted that the complainant firm manufactures pharma products. Anil Kumar is the Managing Partner and he is looking after the affairs of the firm. Accused No.1 is a Private Limited Company and accused No.2, is the Managing Director /authorized signatory of the Company. He is looking after the affairs and managing the daily affairs of the Company. The accused were regular customers of the complainant and they used to purchase medicines from the complainant on credit. A sum of Rs.1,06,03,924/- (One Crore Six Lakhs Three Thousand Nine Hundred Twenty-Four) was due against the accused on 09.09.2017. purchased the medicines worth Rs.8,72,589/-(Rupees Eight Lakhs Seventy Two Thousand Five Hundred Eight Nine) through bill bearing No. 00195. The accused No.2 issued a post-dated cheque for a sum of Rs.8,72,589/-for discharging his liability. The accused No.2 also issued for another cheque sum of Rs.5,90,000/- to discharge the legal liability. The accused stopped business with the complainant. An amount of Rs. 1,13,46, 371/-(Rupees One Crore, Thirteen Lakhs, Forty Six Thousand and Three Hundred Seventy One) was due against the accused upto October, 2017. The complainant deposited the cheques before his bank from where they were sent to the bank of accused No.1; however, the bank of accused No.1 dishonoured the cheque with an endorsement “Payment Stopped by the Drawer”. The complainant told the accused No.2 about the dishonour of the cheque who told the complainant to present the cheques again and assured that they would be honoured on their presentation. The complainant again submitted the cheques to his bank from where they were sent to the bank of the accused. The cheques were again dishonoured with the endorsement “Payment Stopped by the Drawer”. The complainant served a legal notice upon the accused asking them to make the payment. The notice was duly served upon the accused but they failed to pay the amount. Hence, the complaint was filed against the accused for taking action as per the law.
3. The learned Trial Court found sufficient reasons to summon the accused vide order dated 03.02.2018. The accused being aggrieved from the summoning order has approached this Court for quashing the order and the complaint pending before the learned Trial Court. It was asserted that the goods supplied by the complainant were of inferior quality. A large quantity of medicines failed the test and these were returned to the complainant. GST of Rs. 13,35,254.81 was reversed and a debit note was issued to the complainant which was acknowledged by him. The accused expressed serious concern to the complainant about the poor quality of life-saving medicines. A meeting was called and all invoices with the complainant were settled by accused No.2. An amount of Rs. 13,35,254.81/- (Rupees Thirteen Lakhs, Thirty-Five Thousand Two Hundred Fifty-Four and eighty-one paise) was found due after settlement of the amount. It was agreed that the complainant would issue a No Objection Certificate on the payment of the amount. The accused paid a sum of Rs. 15,00,000/- (Rupees Fifteen Lakhs), which was duly acknowledged by the complainant. The accused resigned from the post
Vijay Dhanuka and others Vs. Najima Mamtaj and others
Birla Corporation Limited vs. Adventz Investments and Holding Limited 2019 (16) SCC 610
Abhijeet Pawar vs Hemand Madkhukar Nimbalkar and another 2017 (3) SCC 528
Supriya Jain v. State of Haryana
Gulam Mustafa v. State of Karnataka
State of Haryana v. Bhajan Lal
Abhishek v. State of M.P. 2023 SCC OnLine SC 1083
V. Ravi Kumar v. State represented by Inspector of Police, District Crime Branch, Salem
Neeharika Infrastructure (P). Ltd. v. State of Maharashtra, Criminal Appeal No. 330 of 2021
State of Haryana v. Bhajan Lal
Abhijit Pawar v. Hemant Madhukar Nimbalkar
Birla Corpn. Ltd. v. Adventz Investments & Holdings Ltd.
U.P. Pollution Control Board v. Mohan Meakins Ltd.
Kanti Bhadra Shah v. State of W.B.
State of Gujarat v. Afroz Mohammed Hasanfatta
State of Karnataka v. M. Devendrappa and another
Mahendra K.C. v. State of Karnataka
Iveco Magirus Brandschutztechnik GMBH v. Nirmal Kishore Bhartiya
The power under Section 482 of Cr.P.C. can be exercised to prevent the abuse of process or secure the ends of justice. The Court can quash the F.I.R. if the allegations do not constitute an offence o....
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 burden to prove that a cheque was not issued in discharge of any debt or liability lies on the issuer during the trial, and the presumption in favor of the holder of the cheque can be rebutted by....
The court cannot inquire into the reliability of the allegations in summary proceedings and no further inquiry is necessary if the summoning order demonstrates prima facie findings.
The presumption of a legally enforceable debt under Section 139 of the Negotiable Instruments Act is rebuttable and must be established during trial; the High Court cannot quash proceedings based on ....
The court emphasized the limited scope of inquiry at the stage of issuance of summons under Section 138 of the NI Act and the applicability of the rebuttable presumption under Section 139 of the NI A....
Dishonour of cheque – Consequences of scuttling criminal process at a pre-trial stage can be grave and irreparable.
For summoning under Section 138 of the NI Act, recording of statements under Sections 200 and 202 Cr.P.C. is not required, and the evidence of the complainant may be given by affidavit as per Section....
(1) Dishonour of cheques – Legal presumption of cheque having been issued in discharge of liability must also receive due weightage.(2) To non-suit complainant, at the stage of summoning order, when ....
The court established that the issuance of a cheque, even if post-dated or issued as security, can constitute a legally enforceable debt under Sec. 138 of the N.I. Act, and that the inquiry under Sec....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.