The main legal point established is that the liability to quash proceedings under Section 138 of the Negotiable Instruments Act should be determined based on the statutory provisions and the intention of the parties.

JUDGMENT :

Anil Kshetarpal, J.

The questions which this Court is called upon to answer in the present petition filed under Section 482 of the Criminal Procedure Code praying for quashing of the criminal complaint filed under section 138 of the Negotiable Instruments Act, 1881 (hereinafter to be referred as "the Act of 1881"), are:-

(i) Whether proceedings initiated under section 138 of the Act of 1881, are liable to be quashed in exercise of powers under Section 482 Cr.P.C., if it is undisputed that blank signed undated cheque was issued by the drawer?

(ii) If date on which the cheque was signed and date mentioned in the column meant for filling up date in the cheque are different, What would be the date on which the cheque is drawn?

(iii) Whether filling up of date and amount in the already signed cheque would result in material alteration within the meaning of Section 87 of the Act of 1881, hence, renders the same void?

2. Some facts are required to be noticed. Complainant-respondent company claims to be authorized bottler (running operating a bottling plant) of Coca Cola company, Atlanta. Accused is a proprietor of M/s Kaka Ram, Dabbi Bazar, Chandigarh Road, Samrala District Ludhiana. It is the assertion of the complainant that accused while submitting the Distribution/AMC profile, also delivered to the complainant, two account payee blank/undated Multi City cheques drawn on Bank of Baroda, Samrala favouring complainant M/s Ludhiana Beverages Private Limited (complainant) under her signatures in the capacity of proprietor, to be utilised against any outstanding liability at any time. It was assured that these cheques would be honoured on their presentation to the bank as and when utilized by the complainant for realisation of its outstanding dues. The cheques were issued by the accused in discharge of legally enforceable liability towards the complainant of the outstanding dues as per Books of Accounts of the parties. Letter through which cheques in question were allegedly delivered to the complainant is extracted as under:-

"Please find enclosed herewith following Account payee blank/undated cheques duly signed by authorized person to be utilized against outstanding liability Due to you.

We assure you that these cheque will be honoured on presentation as and when utilized by you for realisation of our outstanding.

In case these cheques are not honoured on presentation you have every right to take legal action as you may considered necessary for realisation of amount due from us."

3. According to the company-complainant, a sum of Rs.13,88,725/- was due and outstanding against the accused and before presentation of the cheque, the company discussed the matter with accused and after reconciling the accounts, a sum of Rs.13,88,725/- was found due and payable. In spite of request made for clearing the outstanding dues, accused did not come forward to pay the outstanding amount despite of repeated reminders, and, therefore, complainant filled one cheque for Rs.4,88,725/- and second cheque for Rs.9,00,000/- in terms of Distribution/AMC Profile and informed the accused over telephone and she assured that cheques would be honoured. The cheques in question, on presentation were dishonoured with the remarks "Accounts Closed" and, therefore, after service of notice, which was duly replied, complaint was filed in which accused-petitioner was summoned.

4. Petitioner-Accused has filed this petition, at initial stage on being summoned, seeking quashing of complaint and summoning order, on the ground that since admittedly, the cheques in question which were dishonoured, were undated signed blank cheques delivered at the time of submitting Distribution/AMC profile, therefore, proceedings under Section 138 of the Act of 1881 cannot be initiated