ORDER :

1. The present petition has been filed taking advantage of Section 482 of Code of Criminal Procedure to quash further proceedings in C.C. No. 14 of 2015, now pending on the file of the learned District Munsif-cum-Judicial Magistrate, Mettupalayam.

2. The respondent had supplied cotton to V.N.K. Textiles and Paper Mills Limited, wherein the brother of the petitioner is a Director. Owing to such business transactions, the brother of the present petitioner, in his capacity, as a Director of V.N.K. Textiles and Paper Mills Limited, had issued a cheque for Rs. 33,19,607/- to the respondent herein. That cheque had been dishonoured, when presented for payment. The respondent had filed C.C. No. 686 of 2012, which is pending before the learned Judicial Magistrate No. II, Pollachi against V.N.K. Textiles and Paper Mills Limited, represented by the brother of the petitioner herein, since he is a Director of the company.

3. It had been contended in the complaint, which is now pending as C.C. No. 14 of 2015 before the learned District Munsif-cum-Judicial Magistrate at Mettupalayam, that the petitioner herein, towards part discharge of the loan amount of her brother, had issued a cheque for Rs. 10,00,000/- to the respondent, which cheque had also been dishonoured, when presented for payment. Alleging that an offence under Section 138 of Negotiable Instruments Act is attracted, a complaint had been lodged, which had been taken cognizance and which Calendar Case is now sought to be quashed by the petitioner herein.

4. Heard arguments advanced by Mr. V.T. Narendiran, learned Counsel for the petitioner and Mr. Rajendra Prasad, learned Counsel for the respondent.

5. The fact that the respondent had initiated C.C. No. 686 of 2012 towards dishonour of the cheque, issued by V.N.K. Textiles and Paper Mills Limited, for a sum of Rs. 33,19,607/- is not disputed by both the learned Counsels. It is contended that the petitioner herein had issued a cheque for Rs. 10,00,000/- to the respondent towards part discharge of the said amount of Rs. 33,19,607/-. However, it must also be mentioned that between the petitioner herein and the respondent, there was no direct contractual or business relationship or transaction necessitating issuance of a cheque of Rs. 10,00,000/-.

6. As a matter of fact, the petitioner herein had not issued the cheque for Rs. 10,00,000/- in her personal capacity, but, only as Correspondent/Secretary of V.N. Krishnaswamy Naidu College of Arts and Science for Women, Mettupalayam-641301.

7. It is seriously contended by Mr. V.T. Narendiran, learned Counsel for the petitioner that there was no legally enforceable debt, necessitating issuance of a cheque for Rs. 10,00,000/- by the petitioner to the respondent, either by the petitioner in her personal capacity or the said college, as an institution. The college has also not been shown as an accused. It is, therefore, contended that the entire proceedings is mala-fide and should be quashed.

8. It is the contention of Mr. Rajendra Prasad, learned Counsel for the respondent, on the other hand, that substantial monies are due and payable to the respondent and as part settlement towards such dues, the petitioner had issued the cheque, which had been dishonoured when presented for payment.

9. Section 138 of Negotiable Instruments Act is as follows:

“Dishonour of cheque for insufficiency, etc. of funds in the account - Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with the bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provision of