Back
K. SURENDER
Paras Collin’s Distilleries Pvt. Ltd. , Rep. by its Managing Director – Appellant
Versus
State of A. P. – Respondent
ORDER :
1. This petition is filed to quash the proceedings against these petitioners/A1 and A2 in CC No.206 of 2015 on the file of the III Special Magistrate Court, Erramanzil. The petitioners are being prosecuted by the 2nd respondent for the offence under Section 138 of the Negotiable Instruments Act.
2. The case of the 2nd respondent is that an amount of Rs.75,00,000/- was given to the accused/petitioners as loan and towards repayment the petitioners issued a cheque bearing No.180902 for Rs.75.00 lakhs. The said cheque was returned unpaid for the reason of ‘payment stopped by the drawer’. Aggrieved by the return of the cheque, a notice was issued. Since the payment covered by the cheque was not paid within the statutory period, after issuing legal notice, the complainant filed the present case.
3. Learned counsel for the petitioners submits that the respondent/complainant is prosecuting the case in his individual capacity. Even according to the complaint, the amount was given from the account of M/s.I.K. Distilleries Private Limited and the cheque was issued in favour of M/s. I.K. Distilleries Private Limited. Prosecuting the petitioners by the complainant in his individual capa
As per Section 138 of the N.I.Act, only the payee or holder-in-due course is authorized to file a complaint and the petitioners are neither payee, as seen from the cheque, nor the holders-in-due cour....
A third party does not have the locus standi to prosecute the drawer of a cheque for an offence under Section 138 of the Negotiable Instruments Act, unless they are the payee or the holder in due cou....
Only the payee or holder in due course has standing to lodge a complaint under Section 138 of the Negotiable Instruments Act.
The authority of a firm's representative to file a complaint under Section 138 must be proved; failure to do so invalidates the conviction.
Section 142 of Act says that no court shall take cognizance of any offence punishable under Section 138, except upon a complaint in writing made by payee or as case may be, holder in due course in ch....
Only the payee or holder in due course can file a complaint for dishonoured cheques; an individual may not sue in their personal capacity for debts owed to a firm.
Only the drawer of the cheque can be made an accused under Section 138 of the Negotiable Instruments Act, with the exception of directors/partners being vicariously liable for the debt/liability of t....
A manager cannot sue in individual capacity for a cheque issued to a firm; only the firm may sue.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
