COMMON ORDER

These Criminal Original Petitions have been filed seeking to quash the proceedings in S.T.C Nos.1602 and 1603 of 2018 on the file of the Judicial Magistrate Court – II, Salem, filed for the alleged offences under Section 138 read with Section 142 of Negotiable Instruments Act, 1881 (Amended).

2.It is alleged in the complaint that the petitioners had issued four cheques each for Rs.10,00,000/- towards the discharge of their liability to the respondent / complainant and when the said cheques were presented for collection, it was returned with an endorsement “Funds Insufficient”

and the petitioners had not made payment inspite of the statutory notice.

3.Mr. K. Sridhar, learned counsel for the petitioner would submit that the complaint is misconceived and admittedly, the petitioners are not liable to pay a sum of Rs.40,00,000/- to the defacto complainant and there is no privity of contract between the defacto complainant and the petitioners; that there is endorsement in the backside of the cheques, which says that 'not to be deposited only for security purpose'. The learned further submitted that the Hon'ble Supreme Court in the judgment reported in 2022 LiveLaw (SC) 830, Dash