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.

ORDER :

G. Jayachandran, J.

The Criminal Original Petition to quash the criminal complaint filed for offence under Section 138 of the Negotiable Instruments Act, 1881(in short “NI Act”) is on the following two specific grounds.

(1) Single complaint in respect of dishonour of 36 cheques bearing different dates is not maintainable in view of Section 219 of Cr.P.C.

(2) The account from which the cheques drawn had sufficient fund to honour the cheque but not honoured in view of the account blocked as per order of the Income Tax Department and the Enforcement Directorate. Hence, the facts of the case does not fall under any of two contingencies contemplated under Section 138 of NI Act.

2. The crux of the complaint against the petitioners:

Complainant Mr.Ashok Kumar Jain, Proprietor of M/s Mangalkalsh Jewellers carrying on business at 152, Mint Street, First Floor, Sowcarpet, Chennai, is a dealer in silver articles and silver bullions. The first accused M/s Challani Ranka Jewellery, a partnership Firm, dealing with silver articles and silver bullions. The second and third accused are its partners. On 14/08/2020 M/s Chellani Ranka Jewellery purchased silver articles and silver bullions worth Rs.1,10,35,566/- from the complainant under invoice even dated with promise to pay the price within 7 days, failing which will pay 24% interest p.a. till the date of payment.

3. Towards part discharge of the legally enforceable debt/liability, on behalf of the first accused, the second accused with the knowledge of the third accused issued 36 cheques drawn on Indian Overseas Bank, Sowcarpet Branch, Chennai. The cheques are for different amount drawn on various dates between 14/08/2020 and 30/09/2020, totally for Rs.1,05,35,566/-.

4. The complainant initially presented 10 cheques for collection through State Bank of India, Elephant Gate Branch. All 10 cheques were dishonoured. Subsequently, the complainant met the 2nd and 3rd accused, informed them about the dishonour of the cheques and sought for payment.

The 2nd and 3rd accused assured honouring the cheques and requested to represent them. However, on representation all the 36 cheques were returned with endorsement “Account blocked situation covered in 2125”. Intimating the dishonour of the 36 cheques, the complainant issued statutory notice dated 29/10/2020 to the accused, demanding payment of Rs.1,05,35,566/-being the cheques amount. The notice was received by the accused on 31/10/2020 and they replied through their counsel vide, reply notice dated 07/11/2020 containing false and frivolous statements and allegations. The accused never took any steps to clear the legally enforceable debt.

5. Having issued cheques with fraudulent intention to cheat, the accused 1 to 3 have jointly and severally committed offence punishable under Section 138 of NI Act.

6. At paragraph 11 of the complaint, the cause of action for the complaint is narrated as below:-

The cause of action for the above Complaint arose at Chennai when 1st Accused had purchased silver articles and silver bullions from the Complainant with prior approval and consent of the 2nd and 3rd Accused, when an Invoice dated 14.08.2020 was raised for a total value of Rs.1,10,35,566/- against such purchases, when the 2nd Accused as an Authorized signatory of the 1st Accused with full knowledge, concurrence and approval of the 3rd Accused had issued the above said Cheques towards discharge of their liability and subsequently, when the Complainant presented the said Cheques for encashment to their Bankers, State Bank of India, Elephant Gate Branch, Wall Tax Road, Chennai 600 003, and when the said Cheques were returned dishonoured by the Bankers of the Accused, Indian Overseas Bank, Sowcarpet, Chennai - 600 079 vide Return Memo dated 19.10.2020 for the reason ‘Account Blocked Situation Covered in 2125’ and when the Legal Notice dated 29.10.2020 was issued to all the Accused by the Counsel of the Complainant, when the legal notice was received by all the Accused