HIGH COURT OF JUDICATURE AT ALLAHABAD
SAMIT GOPAL
Rajesh Kukreja – Appellant
Versus
State of U.P. – Respondent
Based on the provided legal document, the key points are as follows:
The complaint was filed by M/s. Krishna Hotels and Developers through its partner Smt. Saroj Dubey, alleging offences under the Negotiable Instruments Act and IPC, regarding dishonoured cheques issued in favour of Hotel Paradise (!) (!) .
The core issue pertains to the authority and locus standi of the complainant to initiate the complaint under the Negotiable Instruments Act. The court examined whether the complainant, represented by a third party, had the legal standing to file such a complaint (!) (!) .
The relevant legal provisions specify that a complaint under Section 138 of the Negotiable Instruments Act can only be filed by the payee or the holder in due course of the cheque. A third party, without such status, does not have the legal right to initiate proceedings unless they act as an authorized representative or holder in due course (!) (!) .
The court analyzed the facts and found that the complaint was filed by a third party who was neither the payee nor a holder in due course of the cheque. As such, the complaint lacked the necessary legal standing (!) .
The court distinguished the facts of this case from other cases where the complaint was filed by a person with proper authority or legal standing, emphasizing that mere indirect involvement or contractual relationships do not confer locus standi to file a complaint under the Negotiable Instruments Act (!) .
The court noted that while the trial court initially raised a question regarding the complainant's authority, it ultimately proceeded to summon the accused without adequately addressing the lack of locus standi. This oversight was deemed a procedural irregularity (!) (!) .
Consequently, the court held that the complaint filed by the third party was not maintainable and that the order summoning the accused was unjustified. The impugned order was therefore quashed (!) .
The revision was allowed, and the earlier order was set aside, emphasizing that only parties with proper legal standing—payees or holders in due course—may initiate proceedings under the Act (!) .
The decision underscores the importance of establishing legal standing before filing a complaint under the Negotiable Instruments Act and clarifies that third-party complaints are generally impermissible unless the third party qualifies as a holder in due course or acts with proper authorization (!) (!) .
Pending applications, if any, were disposed of accordingly (!) .
These points collectively reflect the court’s reasoning and conclusion that the complaint filed by a third party lacking the requisite legal standing was invalid, leading to the quashing of the order summoning the accused.
JUDGMENT
HON'BLE SAMIT GOPAL, J.
1. Heard Sri L.M. Singh, learned counsel for the revisionist, Sri Ankur Kushwaha, Advocate, holding brief of Sri Alok Kumar Yadav, learned counsel for the opposite party no. 2, Sri Ajay Singh, learned A.G.A.-I for the State/opposite party no. 1 and perused the record.
2. This revision under Section 397 /401 Cr.P.C. has been filed by the revisionist - Rajesh Kukreja with the following prayers:-
“It is, therefore, most respectfully prayed that this Hon’ble Court may be pleased to set aside the order dated 26.7.2013 passed by M.M. VIIIth, Kanpur Nagar in Complaint Case No. 1091/2012 (M/s. Krishna Hotel Versus Rajesh Kukreja), in the ends of justice.”
3. The facts of the case are that a complaint dated 8.8.2012 was filed by M/s. Krishna Hotels and Developers through its partner Smt. Saroj Dubey wife of Sri Virendra Dubey, against Rajesh Kukreja, Director, Mangalam Restaurant and Hotel Pvt. Ltd., son of Ghanshamdas, for the offence under Section 138 read with 142 of the Negotiable Instruments Act, 1988, Sections 406 and 420 I.P.C. The complainant filed an affidavit dated 8.8.2012 to be read under Section 202 Cr.P.C. as her statement. The trial court vide its
A third-party complaint under the Negotiable Instruments Act is not maintainable unless filed by the payee or holder in due course.
Payee - The person named in the instrument, to whom or to whose order the money is by the instrument directed to be paid, is called the payee.
When such amendment was brought in 2015 and inserted section 142(2) of the NI Act, the very contention of the petitioner that the Bijapur Court is not having jurisdiction to try the complaint filed f....
Revisional jurisdiction limited to perversity; unregistered firm competent for s138 NI Act complaint; ss118/139 presumptions arise on cheque admission, rebuttable by evidence; subsequent payments do ....
Punishment under Section 138 of Act is not a means of seeking retribution but a means to ensure payment of money.
A complaint under the Negotiable Instruments Act must be filed in the name of the corporate entity, and valid statutory notice of dishonour is a prerequisite for prosecution.
The issuance of a cheque establishes liability under Section 138 of the Negotiable Instrument Act, requiring the accused to rebut the presumption of its validity, which he failed to do.
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