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2012 Supreme(All) 2200

ALLAHABAD HIGH COURT
BEFORE : SUNIL HALI, J.
D.K. VERMA AND ANOTHER .....Applicants
Versus
STATE OF U.P. AND ANOTHER ....Opposite Parties
(Criminal Misc. Application No. 22168 of 2011, decided on 30th August, 2012)

Advocates:
Counsel :
Manoj Kumar Gupta, Alok Ranjan Mishra and Sandeep Chaturvedi for the Applicants; A.Z. Khan and A.G.A. for the Opposite Parties.

Headnote:Criminal Procedure Code, 1973—Section 482—Negotiable Instruments Act, 1881—Section 138—(Indian) Penal Code, 1860—Sections 420, 467, 468 and 471—Criminal proceedings—Quashing of—Cheque in question presented for encashment—Non-encashment of—On account of signature did not tally—Complaint under NI Act—Admittedly, both parties bound by an agreement—Jural relationship—Admittedly, blank cheque issued in view of averment made in complaint—Two versions of event—In any commercial transaction intention of parties are to be gathered from their conduct—It cannot be accepted that opposite party No. 2 issued cheque unsigned—More particularly when he admits that cheque issued in pursuance to an agreement—Story in complaint highly improbable—Proceedings liable to be quashed. [Paras 6, 7, 8 and 9]

       

JUDGMENT

Hon’ble Sunil Hali, J.—This application under Section 482 Cr.P.C. has been filed by the applicants seeking quashment of proceedings of Case No. 1119 of 2010 (Mohd Imraj Khan v. D.K.Verma and others), under Sections 420, 467, 468 and 471 IPC pending before the Special Chief Judicial Magistrate, Kanpur Nagar.

2. It is contended by learned counsel for the applicants that the applicants are the General Manager and Managing Director of M/s American Agrovet Private Ltd which is a registered company under the companies Registration Act, engaged in the business of production and sale of poultry feed. It is also contended that opposite party No. 2 was commission agent for selling of the applicant’s product in districts in Uttar Pradesh and after selling the same opposite party No. 2 would get commission at the rate of 4 % on the total sale of poultry feed. It is further contended by the applicants that an agreement was executed between the parties on 5.6.2006 wherein clause 2 stipulates that in respect of sales of Poultry feeds affected by the Company opposite party No. 2 is issuing the Cheque No. 717839 drawn on Kanpur in favour of the Company to cover the outstanding dues payable to the company by him.

3. Case of the applicants is that the cheque was issued by the opposite party No. 2 and after computing the amount payable by him by way of security it was presented before the Bank at Patna for encashment but the cheque could not be encashed on account of the fact that the signature did not tally with that of opposite party No. 2. Consequently, a complaint under Section 138 NI Act was filed against the opposite party No. 2 before the Court at Patna. Case set out by the applicants in that case is that in order to discharge their liability arising out of the agreement between the applicants and opposite party No. 2 the cheque in question was issued by the opposite party No. 2 but the same could not be encashed on account of the reason mentioned on the memo of the Bank. An amount of Rs. 11,47,280/- was sought to be recovered from the opposite party No. 2. This matter is still pending in the Court at Patna.

4. It is contended by learned counsel for the applicants that the opposite party No. 2 filed a complaint at Kanpur against the applicants as a counter blast to that criminal proceedings which is nothing but gross misuse of the process of law. Hence this petition under Section 482 Cr.P.C.

5. Allegations contained in the complaint are that the opposite party No. 2 was appointed as an agent by the applicants on a commission of 4 % of the total sale of the poultry feeds manufactured by the applicants’ company. In paragraph 4 of the complaint, it is stated that with regard to that an agreement was executed between the applicants and opposite party No. 2. The condition set forth in the agreement was that a blank cheque No. 717836 payable at State Bank of India, Kanpur was issued by the opposite party No. 2. This cheque was payable as a security to cover up the outstanding dues payable to the company by the opposite party No. 2. Complaint also reveals that the company owns an amount of Rs. 9,60,000/- to the opposite party No. 2 as commission. This amount was demanded by the opposite party No. 2 from the applicants and instead of paying the amount the blank cheque given to the company was filled up by the applicants with an amount of Rs. 11,47,280/- which was sought to be drawn by them. However, this cheque could not be encashed as the signature did not tally with the drawer of the cheque. It is claimed that on the basis of allegations levelled against them the offence under Sections 420, 467, 468 and 471 IPC is made out.

6. Heard learned counsel for the applicants, learned A.G.A. and perused the material on record.

7. Admittedly, both the parties are bound by an agreement which determines their jural relationships. Petitioners are suppliers of the poultry feeds for which the opposite party No. 2 was appointed as agent on commission of

















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