THE HONOURABLE SRI JUSTICE N.TUKARAMJI CRIMINAL PETITION No. 14115 OF 2024

ORDER

This Criminal Petition is filed under Section 528 of Bharatiya Nagarik Suraksha Sanhita, 2023 (for short ‘the BNSS’), seeking quashment of the proceedings against the petitioner in C.C. No. 809 of 2018 pending on the file of the learned XIX Additional Chief Metropolitan Magistrate, Secunderabad.

2. The petitioner is arrayed as accused No.5 in the Calendar Case registered for the offence under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter ‘NI Act’).

3. I have heard Ms. T.Dhana Lakshmi, learned counsel, representing Mr.A.Chandra Shaker, learned counsel for the petitioner and Mr.Jithender Rao Veeramalla, learned Additional Public Prosecutor, representing respondent No.1-State.

4. The complainant's case, in brief, is that the disputed cheque bearing No. 002230, dated 01.10.2012, drawn on ICICI Bank, Secunderabad, in the amount of Rs.10,00,00,000/- (Rupees Ten Crores only), was issued along with another cheque bearing No. 001236, also dated 01.10.2012, for Rs.9,24,658/-, by accused No. 1. The allegation against the petitioner, who is arrayed as accused No. 5, is that he was a member of the Board of Directors of the 1^st accused Company at the relevant time. On that basis, it is asserted that he is vicariously liable for prosecution under Section 138 of the Negotiable Instruments Act, 1881.

5. Learned counsel for the petitioner contends that although the petitioner was formerly a director of the 1^st accused Company, he had tendered his resignation on 30.03.2012. Furthermore, Form No. 32 issued by the Registrar of Companies reflects that the petitioner ceased to be associated with the Company effective from 20.07.2012. In light of these facts, the continuation of criminal proceedings against the petitioner is contended to be an abuse of the process of law.

6 Despite being served with due notice, respondent No. 2 has failed to appear or file any response.

7. I have perused the materials on record.

8. From the dates averred in the complaint, it is evident that the disputed cheques were issued on 01.10.2012. The pleadings, along with the entries in Form No. 32 issued by the Registrar of Companies, clearly indicate that the petitioner had ceased to be associated with the 1^st accused Company as of 20.07.2012. Furthermore, as per the complaint itself, the petitioner is not alleged to be the signatory of the disputed cheques. In light of these circumstances, and given that the petitioner was no longer connected with the 1^st accused Company on the date the cheques were issued, the continuation of proceedings against him would be legally untenable and constitute an abuse of the process of law. Accordingly, this Court finds merit in the petition, and the same is liable to be allowed.

9. In the result, the Criminal Petition is allowed. Consequently, all proceedings in C.C. No. 809 of 2018, pending before the learned XIX Additional Chief Metropolitan Magistrate, Secunderabad, insofar as they pertain to the petitioner/Accused No. 5, are hereby quashed.

Pending miscellaneous applications, if any, shall stand closed.

_______________ N.TUKARAMJI, J Date: 23.06.2025 svl