ORDER:

This Criminal Petition is filed under Section 482 of the Code of Criminal Procedure, 1973 (for short ‘Cr.P.C.’) to quash the proceedings against the petitioners/accused Nos.1 to 5 in STC.N.I.No.7246 of 2023 pending on the file of the XII Metropolitan Magistrate, Nampally at Hyderabad for the offences punishable under Section 138 of Negotiable Instruments Act, 1881 (for short ‘NI Act’).

2. Briefly stated, the facts relevant for disposal of this case are that complainant/respondent No.1 herein is engaged in the business of entrepreneurial ventures. Petitioner No.1 is a private company owned by petitioner Nos.2 to 5 engaged in the business of construction and constructing Double Bed Room Houses for the State of Telangana. In view of their long acquaintance, petitioner No.2 introduced respondent No.1 to other partners and on request of petitioner Nos.2 to 5, and on promise made by petitioner Nos.1 and 3 that on each house built by petitioner company being managed by petitioner Nos.2 to 5, they will pay profit of Rs.10,000/- on every house built by petitioner No.1-Company and respondent No.1 in the year 2019 invested in the said project and paid on various dates an amount totalling to Rs.3,50,00,000/- and further paid a sum of Rs.24,00,000/- on 12.2.2020 to petitioner No.2 and an amount of Rs.12,00,000/- on 14.2.2020 to petitioner No.5. Respondent No.1 alleges that as per the promise, petitioner No.1-Company is liable to pay Rs.2,00,00,000/- towards his profit and failed to pay and that petitioner No.2 representing petitioner No.1-Company confirmed their total liability of Rs.5,66,70,000/- and issued seven cheques dated

20.03.2023 drawn on Punjab National Bank.

3. Respondent No.1 filed complaint dated 05.06.2023 under Sections 199 and 200 Cr.P.C., for the offences punishable under Sections 138 and 142 of the NI Act alleging that the cheques issued by petitioners were presented in the bank for payment and the same were dishonoured and returned on 20.03.2023 with endorsement of the bank “advice not received” (Documents 14 to 20). Respondent No.1 alleged that petitioners failed to repay the due amount payable to him and are liable for punishment for offences punishable under Section 138 of Negotiable Instruments Act, 1881, Section 406 and 420 of IPC and issued legal notice dated 17.4.2023 demanding to make payment of Rs.3,07,00,000/- within a period of 15 days and the same were returned on 21.4.2023 and 26.4.2023 with postal endorsement “No such person”. The complainant filed the copies of legal notice dated 17.04.2023 and postal receipt dated 18.04.2023 as document Nos.21 to 27 with the complaint. The complainant also sent legal notices to the alternate addresses and the same were also returned and the copies of legal notices and postal receipts dated 19.04.2023 were filed as Document Nos. 28 to 34 along with complaint. Thus, complainant prayed to take cognizance of the complaint against petitioners and to punish them under Section 138 of N.I. Act and Sections 406 and 420 of IPC.

4. Taking cognizance of the complaint, STC.NI.No.7246 of 2023 was registered on the file of the XII Metropolitan Magistrate, Nampally Hyderabad against the petitioners. Hence, the present criminal petition is praying to quash the said proceedings.

5. Heard Sri M.Shiva Shekar, learned counsel for petitioner, Sri Vedula Srinivas, learned senior counsel appearing for Smt Vedula Chitralekha, learned counsel for respondent No.2, and Sri D.Arun Kumar, learned Additional Public Prosecutor, appearing for respondent No.2 – State.

6. Learned counsel for petitioners submitted that petitioners are not liable to pay any amount to respondent No.1. He contended that petitioner No.1-Company represented by petitioner Nos.2 to 5 never promised to pay Rs.10,000/- per each, towards Double Bed Room constructed to respondent No.1. He lamented that provisions of Section 138 of NI Act does not attract in as much as the alleged cheques were returned with endorsement “Advice not re