JUDGMENT

1. The present petition is filed seeking quashing of the order dated 18.10.2019, passed by the learned MM-01 (Shahdara, Karkardooma Court Complex, New Delhi), in Complaint Case bearing number 4728/2019, titled as Ashtech Industries Pvt. Ltd v. M/s RCC Infra Ventures and others, taking cognizance for offence under Section 138 of the Negotiable Instrument Act (hereinafter referred as “NI Act”).

2. The complaint was filed by the Respondent, alleging that M/s RCC Infra Ventures Ltd, (hereinafter referred to as ‘accused company’) through Accused No. 2 to 9, approached the Respondent (hereinafter referred to as ‘complainant’) for the deployment of One Hydraulic Piling Rig MAIT HR-180 machine on monthly rental basis at their Via-Duct Mumbai Project Site.

3. It was alleged that the accused company, through the accused placed a Work Order/Agreement dated 11.02.2019 pursuant to which the machinery was deployed on 16.02.2019 at their Mumbai Site by the Complainant company at a monthly rental value of ₹13,75,000/-

(not inclusive of all taxes and duties), for a duration of 12 months.

4. Pursuant to the signing of the Work Order/Agreement dated 11.02.2019, and in furtherance to Clause 13.2, the accused persons handed over 3 pre-filled cheques to the complainant as a security, amounting to ₹16,22,500 (Sixteen Lacs Twenty Two Lacs Five Hundred Only) each, which also included the liability towards GST. It is submitted that it was agreed upon by the complainant as well as the accused persons that in the event of default of any payment, the cheques shall be presented by the complainant company.

5. It has been further alleged by the complainant that even though several invoices/bills were raised by them, the accused company has not made any payment towards rent since April 2019. The details provided by the complainant in regard to the invoices is given below:

6. Accused failed to pay the dues against Invoice bearing no.

19201000004, for the month of April 2019. It is stated that the complainant received categorical instructions, and specifically from Accused No. 5 (Santosh Kumar Singhal) to present the cheque bearing number 001404 dated 31.05.2019 of ₹16,22,500/- towards discharge of partial liability towards the Invoice No. 19201000004 of ₹16,79,444/-. However, the cheque upon presentation got dishonored for the reasons “funds insufficient” vide cheque return memo dated 03.08.2019. It is stated that the accused persons were giving excuses on several pretexts, for the dishonor of cheques. It is further stated that the accused persons requested the complainant to present cheques bearing number 001404 and 001405 dated 31.05.2019 and 01.08.2019 towards the realization of part payment of the Invoice bearing number 19201000004 of ₹ 16,79,444 and Invoice No. 19201000008 of ₹ 16,74,420 raised for the month of April and May 2019(for a sum of ₹16,22,500). However, both cheques on presentation were dishonored vide return memo dated 03.08.2019. Several attempts were allegedly made by the complainant with the Accused to resolve the issue and the complainant was finally constrained to terminate the work order vide email dated 03.08.2019, in furtherance to which the accused company permitted the complainant to take possession of the Hydraulic Piling Rig MAIT HR 180 from the site of the accused company.

7. The complainant in furtherance of the dishonor of cheques, sent a Legal Demand Notice dated 18.09.2019 in terms of Sections 138, 141 and 142 of the NI Act, asking the accused to pay a sum of ₹ 48,67,500/- (Rupees Forty-Eight Lakhs Sixty Seven Thousand Five Hundred Only), out of a total outstanding amount of ₹ 69,03,726/- (Rupees Sixty Nine Lakhs