High Court of Judicature at Madras
T.S. SIVAGNANAM, J.
M/s. Polyfine Industries & Others
Versus
P. Gopal
Crl.O.P.No.32650 of 2013 & M.P.No.1 of 2013
Decided on: 24-06-2014
Negotiable Instruments Act - Quashing of Proceedings - Section 138 of N.I. Act - [Section 138 of the Negotiable Instruments Act, 1881] - The court discussed the disputed questions of fact regarding the cheque amount, the wrong mentioning of the cheque number, and the inclusion of a partner as an accused. The court held that the disputed questions of fact are to be decided at the trial and cannot be quashed summarily. The complaint against the partner was quashed as she was not the signatory of the cheque and was only representing the firm.
Fact of the Case:
The accused filed a petition to quash the proceedings under Section 138 of the Negotiable Instruments Act, 1881, based on three contentions related to the cheque amount, wrong mentioning of the cheque number, and the inclusion of a partner as an accused.
Finding of the Court:
The court found that the disputed questions of fact regarding the cheque amount and the inclusion of the partner cannot be quashed summarily and should be decided at the trial. The court quashed the complaint against the partner as she was not the signatory of the cheque and was only representing the firm.
Issues: Disputed questions of fact regarding the cheque amount, wrong mentioning of the cheque number, and the inclusion of a partner as an accused.
Ratio Decidendi: Disputed questions of fact are to be decided at the trial and cannot be quashed summarily. The complaint against the partner was quashed as she was not the signatory of the cheque and was only representing the firm.
Final Decision: The Criminal Original Petition is partly allowed, and the complaint against the partner is quashed. The case should be proceeded against the first accused-Firm, represented by the authorized signatories.
1. The petitioners herein are the accused in S.T.R.No.5141 of 2012, on the file of Judicial Magistrate No.II, Puducherry, and they filed this Petition under Section 482 of Cr.P.C., to quash the above proceedings, pertaining to the complaint, lodged by the respondent/complainant, seeking to prosecute the petitioners for the alleged commission of an offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter referred to as ' N.I. Act').
2. The learned counsel appearing for the petitioners/accused has raised three contentions to quash the proceedings.
Firstly, by contending that the cheque, alleged to have given in favour of the respondent/complainant for a sum of Rs.6,60,000/-, is more than the debt, said to be due, therefore, it is submitted that, the instrument in question cannot be treated as "Negotiable Instrument" so as to attract the proceedings under Section 138 of the N.I. Act, 1881, since on the date of issue of the cheque, the legally enforceable debt or liability, according to the complainant himself, was only Rs.6,55,000/-, whereas, the cheque issued was, for Rs.6,60,000/-, which is more than the liability. In this regard, reliance was placed on the judgment in (Angu Parameshwari Textiles Pvt Ltd., Vs. Sri Rajam and Co.).
Secondly, it is pointed out that in the legal notice issued by the respondent/complainant, the cheque number has been wrongly mentioned.
Thirdly, it is contended that one Deepa is also shown as accused, whereas, she is not the signatory of the cheque, though she is one of the partners of the first accused-Firm. That apart, there is no specific averment in the complaint as against the said Deepa in any other manner. Learned counsel seeks for quashing the complaint on the abovesaid three grounds.
3. The learned counsel appearing for the respondent submitted that the contentions raised by the petitioner regarding the cheque amount issued and the liability are disputed questions of fact, which are to be decided by the Court below only at the time of trial and the same cannot be gone into now, in the quash proceedings under Section 482 of Cr.P.C. Sofar as the second contention relating to the wrong mentioning of the cheque number in the legal notice is concerned, it is submitted that that original cheque has been filed before the Court below, and the Court below, on being satisfied with the correct proof furnished to it, has taken the complaint on file. Therefore, the second contention raised by the petitioner also, does not merit consideration. As regards the third contention, viz., the contention that Deepa cannot be arrayed as accused, it is submitted that, she being one of the partners of the first accused-Firm, was rightly impleaded as an accused in the complaint.
4. Heard learned counsel appearing for both the parties and perused the materials available on record.
5. As regards the first point, it is seen that the complaint has been made by making certain averments in Paragraph No.2 to the effect that the accused has borrowed a sum of Rs.5,00,000/-and agreed to re-pay the same with interest at the rate of 12% per annum from the date of borrowal till the date of discharge and that, as a partial discharge thereof, the accused have issued a cheque in favour of the respondent/complainant, for a sum of Rs.6,60,000/-. Admittedly, when the instrument was presented by the respondent/complainant for encashment, it was dishonoured. The learned counsel for the petitioners, by referring to a calculation sheet, would state that from the date of borrowal, if the interest is calculated at the rate of 12% for 31 monthly instalments, the amount will be only Rs.6,55,000/- and it cannot be Rs.6,60,000/-Therefore, the instrument, in question, is not towards the discharge of the debt. As rightly pointed out by the learned counsel for the respondent, the issue raised regarding the cheque amount is a disputed question of fact, and it has to be gone into only by the Court below and ca
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