ORDER

This Criminal Original Petition has been filed calling for the records relating to S.T.C.No.115 of 2019 on the file of the learned Judicial Magistrate, Fast Track at Hosur and to quash the same.

2. The respondent lodged a complaint for the offence punishable under Section 138 of Negotiable Instruments Act alleging that the respondent owned a property ad-measuring 1.83 acres. He submitted a plan and entrusted the project with the accused for the total sale consideration of Rs.5.52 Crores and a further condition was that the construction has to be completed within a period of three years. The respondent paid a sum of sum of Rs.3 Crores for construction viz., in the month of August, 2016, a sum of Rs.1 Crore, in the month of September, 2016, a sum of Rs.1 Crore and in the month of October, 2016, a sum of Rs.1 Crore were paid to start construction. Accordingly, the accused started the construction work. After receipt of the entire amount, the accused also signed a blank stamp paper, blank cheque to reimburse any excess payment of advance from the complainant. The construction work was very slow and as such, there was a mediation between them. However, the accused stopped the construction. Therefore, the defacto complainant valued the construction made by the accused at Rs.1,71,23,169/-. Therefore, the accused has to refund the balance amount. In order to realize the balance amount, after deducting a sum of Rs.7,20,000/-, a cheque for a sum of Rs.1,38,76,831/- was presented. It was returned dishonoured for the reason “Funds Insufficient”. After causing statutory notice, the defacto complainant lodged a complaint.

After completion of investigation, the Trial Court had taken cognizance in S.T.C.No.115 of 2019 and issued summons to the accused.

3. There are totally three accused, in which the petitioner is arrayed as A1. Already, the second and third accused filed a quash petition before this Court and the same were allowed, since they were not the signatory to the cheque and they were no way connected with the Proprietor concern owned by the first accused viz., R.V.Information Technologies. The alleged cheque was issued in the name of R.V.Information Technologies signed by the first accused. The petitioner had already filed a quash petition in Crl.O.P.No.30035 of 2019 and the same was dismissed for default on 18.04.2023. Therefore, the petitioner filed this petition to quash the proceedings initiated by the respondent for the offence under Section 138 of Negotiable Instruments Act.

4. The learned counsel for the petitioner would submit that the petitioner never issued any cheque for a legally enforceable debt. In fact, the petitioner borrowed a sum of Rs.2 Crores in the month of June, 2013 from the respondent and issued four cheques bearing Nos.000242 to 000245 and five other cheques as security purpose. As agreed by the petitioner, the petitioner paid interest along with the principal amount to the tune of Rs.3 Crores and 10 Lakhs for a loan of Rs.2 Crores. The present impugned complaint has been filed on the strength of the cheque bearing No.000245. Therefore, the cheque was not issued for any legally enforceable debt. He further submitted that the respondent engaged the petitioner for construction of a bungalow, which was estimated at Rs.5 Crores and 52 Lakhs for 13,000 sq.ft at the rate of Rs.3,400/- per sq.ft and the compound wall covering the entire area at a height of about 20 feet on a total cost of Rs.1 Crore and 10 Lakhs. The petitioner agreed to construct a bungalow and also agreed to complete the construction by June 2019. The amount which was already received as a loan to be treated as an advance and the petitioner started the construction. The petitioner had spent a total sum of Rs.4 Crores and 10 Lakhs and even then, the respondent failed to pay the balance amount. They adjusted a sum of Rs.1 Crore paid to R.R.Associates on behalf of the respondent. The other balance amount was not paid so far. In fact, in this rega