Statutory notice for cheque dishonor must be issued within prescribed time; failure or competence of complaint representative are factual matters for trial, not grounds for quashing under Section 482 Cr.P.C.

COMMON ORDER:

J. SREENIVAS RAO, J.

These Criminal Petitions are filed under Section 482 of the Code of Criminal Procedure, 1973 (for short, ‘Cr.P.C.’) by the petitioners/accused Nos.3 and 4 seeking to quash the proceedings in C.C.Nos.1607, 1476 & 1617 of 2016 and 185 of 2017 respectively, on the files of the XVIII Additional Chief Metropolitan Magistrate, Secunderabad, for the offence under Section 138 of the Negotiable Instruments Act, 1881 (for short, ‘the NI Act’).

1.1. Since the parties and the issues involved in all four criminal petitions are similar, they were heard together and are being disposed of by this common order.

1.2. The parties hereinafter referred to as they were arrayed in the complaints.

2. Brief facts of the case:

Respondent No.2-complainant filed private complaints stating that IFCI Limited is a Government of India company and a financial institution within the meaning of Companies Act, 2013, and is engaged in the business of providing short and long term financial assistance. Accused No.1 is a company registered under the Companies Act, having its registered office at Hyderabad and is engaged in infrastructure development projects/services. Accused Nos.2 and 3 are the promoters and directors, and accused No.4 is the nominee director (Sycamore) of accused No.1 company. At the request of accused, the complainant sanctioned a corporate loan of Rs.90 crores vide letter of intent dated 08.09.2014 and further sanctioned another corporate loan of Rs.100 crores vide letter of intent dated 06.04.2015. The said loans were duly availed by accused No.1 company and were repayable as per the repayment schedule annexed to the loan agreements dated 15.09.2014 and 05.05.2015 respectively. Accused No.1, through accused No.3, issued cheques dated 15.07.2016, 15.05.2016, 15.06.2016 and 15.08.2016 in favour of the complainant for Rs.4,50,00,000/-, Rs.1,01,19,452/- & Rs.1,22,87,671/- (C.C.No.1607 of 2016); Rs.1,22,87,671/- & Rs.1,01,19,452/- (C.C.No.1476 of 2016); Rs.1,26,97,260/- & Rs.1,04,56,767/- (C.C.No.1617 of 2016); and Rs.98,75,836/- & Rs.4,16,66,700/- (C.C.No.185 of 2017) respectively, towards part discharge of accused’s liability. The said cheques were presented for encashment by the complainant on 18.07.2016, 16.05.2016, 15.06.2016 and 16.08.2016 respectively through its banker, i.e., HDFC Bank, Begumpet Branch, Hyderabad, to the accused’s banker i.e., State Bank of Hyderabad. However, the cheques were returned unpaid on 19.07.2016, 17.05.2016, 16.06.2016 and 17.08.2016 respectively by accused banker with the endorsement ‘Insufficient Funds’. The bank return memos along with the unpaid cheques were received by the complainant on 22.07.2016, 20.05.2016, 20.06.2016 and 22.08.2016 respectively. Thereafter, the complainant issued legal notices dated 19.08.2016, 20.06.2016, 20.07.2016 and 22.08.2016, calling upon the accused to make payment of Rs.6,74,07,123/-, Rs.2,24,07,123/-, Rs.2,31,54,027/- and 5,15,42,536/- respectively, within 15 days from the date of receipt of the said notices. All the accused received the notices on 22.08.2016, however, they neither complied with the demand made in legal notices nor issued any reply. Thereby, the accused have committed the offence under Section 138 of the N.I. Act and are liable for punishment and sought imposition of a fine of double the cheque amounts by way of compensation to the complainant under Section 357 of the Cr.P.C.

3. Heard Mr. Sharad Sanghi, learned counsel for the petitioners, Mr. Praveen Kumar, learned counsel for respondent Nos.2 to 4 and Mr. M. Viv