HON’BLE SRI JUSTICE K. SREENIVASA REDDY Criminal Petition No.11224 of 2018
Order:
This Criminal Petition, under Section 482 Cr.P.C., has been filed to quash the proceedings in CC No.1670 of 2018 on the file of the II Metropolitan Magistrate Court-cum-Railways at Visakhapatnam against the petitioner/A2.
2. A private complaint has been filed as against the petitioner herein and another for the offences punishable under Sections 138 and 142 of the Negotiable Instruments Act (for short ‘the Act’).
3. Brief facts of the case are that the complainant paid a sum of Rs.12,00,000/- to the accused on 10.09.2013 and the accused executed a demand promissory note in favour of the complainant promising to pay the same with interest at 24% p.a. Subsequently, the accused failed to pay the principal and interest thereon and postponed on one pretext or the other. On repeated demands by the complainant, on 09.12.2014 the accused issued a cheque bearing No.498802 for an amount of Rs.1.00 Lakh drawn on State Bank of India, Visakhapatnam in favour of the complainant towards part payment of debt amount. After presenting the cheque, the same was returned dishonoured with an endorsement ‘insufficient funds’ on 15.12.2014. Thereafter, after complying with the essential conditions as contemplated under Section 138 of the Act, the private complaint was filed.
4. It is further alleged that accused No.1 compromised for an amount of Rs.4,20,000/- before the Lok Adalat on 11.02.2017. In respect of the petitioner herein is concerned, he issued 10 post dated cheques to the complainant for an amount of Rs.4,20,000/- on different dates with different cheque amounts. It is further alleged that out of 10 cheques, 4 cheques were honoured and remaining 6 cheques were dishonoured as ‘insufficient funds’. Thereafter, the complainant presented 4 cheques i.e., Cheque No.743747, dated 20.08.2017, for an amount of Rs.45,000/-, second cheque No.743748, dated 20.09.2017, for an amount of Rs.50,000/-, third cheque bearing No.743749, dated 20.10.2017, for an amount of Rs.50,000/- and fourth cheque bearing No.743750, dated 20.11.2017, for an amount of Rs.50,000/-, all drawn on Canara Bank, to his banker i.e., Bank of India, Santhipuram, Visakhapatnam and the same were returned dishonoured with an endorsement ‘insufficient funds’. It is further alleged that on 18.11.2017 out of Rs.4,20,000/-, accused Nos.1 and 2 had paid an amount of Rs.1,25,000/-. The time limit for two cheques i.e., cheque bearing No.743745, dated 20.06.2017, for an amount of Rs.45,000/- drawn on Canara Bank and cheque bearing No.743746, dated 20.07.2017, for an amount of Rs.50,000/- drawn on Canara Bank, has been completed. Thereafter, the complainant issued a legal notice dated 18.12.2017 through his counsel to accused Nos.1 and 2 calling for the amount covered under the said dishonoured cheques. The complainant did not receive any acknowledgment from accused No.1 and the petitioner/A2 received the notice on 20.12.2018, but he did not choose to issue any reply nor paid the due amount. After complying with the conditions contemplated under Section 138 of the Act, the complainant resorted in filing the present complaint.
5. Learned counsel for the petitioner, basing on the recitals in the notice, has strenuously contended that 2 cheques which were issued by the accused are invalid and the same cannot be taken into account. When such is the notice which has been issued by the complainant which is defective in nature, the proceedings have to be quashed on the very sole ground.
6. Learned counsel for respondent No.2 has opposed the same on the ground that the truth or otherwise of the said accusation has to be decided during the course of trial.
7. Heard. Perused the record.
8. Admittedly, cheques have been issued to the complainant and there is no dispute with regard to the said fact. The cheques have been issued on different dates for different amounts. On presentation of the cheques to his Banker by the complainant, the same were returned dishonoured with an endorsement ‘insufficient fun