C O M M O N O R D E R

These Criminal Original Petitions have been filed to quash the proceedings initiated against the petitioners for the offence under Section

138 of the Negotiable Instruments Act.

2. The crux of the allegation against the petitioners is that they borrowed a loan by executing an agreement and promised to repay the loan as stipulated in the loan agreement through auto debit /ECS with their bank i.e., Indian Overseas bank, Kaundampalayam branch, Coimbatore. Thereafter, on 02.01.2017 when the first installment fell due, the same was dishonoured for insufficient funds and hence, the proceedings have been initiated under Section 138 of the Negotiable Instruments Act.

3. It is submitted by the learned counsel for the petitioners that the dishonour of Auto Debit is governed under the Payment and Settlement System Act, 2007, but the complaint has filed under Section 138 of the Negotiable Instruments Act and therefore, the complaint itself is not maintainable in the eye of law and the same has to be quashed.

4. Heard the learned counsel for the respondent on the above submissions.

5. It is relevant to note that though the ECS is governed by payment and settlement Systems Act, i