THE HONOURABLE SRI JUSTICE E.V.VENUGOPAL CRIMINAL PETITION No.2743 of 2025

ORDER

This Criminal Petition is filed under Section 528 of Bharatiya Nagarik Suraksha Sanhita, 2023 (for short “BNSS”) by the petitioner/accused, seeking to quash the proceedings in S.T.C. NI. No.168 of 2024, on the file of the learned II Additional Judicial Magistrate of First Class, Mancherial, for the offences under Section 138 of Negotiable Insutruments Act, 1881 (for short “the NI Act”).

2. Heard Sri Shyam S.Agarwal, learned counsel for the petitioner and Ms.Madhavi, learned Assistant Public Prosecutor for respondent No.1-State. Perused the materials on record.

3. Brief facts leading to filing of this criminal petition are that in view of the acquaintance with the complainant, accused approached him and advanced hand loan amount of Rs.10,00,000/- with a promise to pay the same with interest @ 2% per month and executed a promissory note on 09.03.2022. Till February, 2024, accused paid an amount of Rs.8,37,709/-. During repayment, accused advanced Rs.20,00,000/- and issued promissory note on 12.03.2024 promising to repay the amount with interest 2% per month. But the accused did not repay the same. When the complainant demanded to pay the amount, the accused issued a cheque bearing No.053042,d dated 24.02.2024 for an amount of Rs.10,00,000/-. When the complainant presented the said cheque, it was returned with an endorsement “fund insufficient”. Then, the complainant issued a statutory notice to the accused on 17.05.2024, but the accused did not give any reply to the said notice. Therefore, the accused committed the offence under Section 138 of NI Act.

4. Learned counsel for the petitioner would submit that the petitioner has paid almost entire amount to the complainant; hence, there is no legally enforceable debt and liability on the part of the accused towards the complainant. The complainant issued legal notice to the address belongs to the mother of the accused and the notice was returned to the sender. In view of the accused becoming insolvent having lost money by paying heavy amount of interest to the creditors, he approached the learned Additional Judge, City Small Causes Court, Hyderabad and filed insolvency petition vide I.P.No.23 of 2024. Therefore, none of the ingredients levelled against the petitioner would attract and the prima-facie case does not constitute against the petitioner to undergo him for trial and continuation of proceedings against the petitioner would amount to abuse of process of law. Hence, seeks to allow this criminal petition.

5. Learned counsel for respondent No.2 would submit that there are serious allegations against the petitioner and the fulfledged trial alone shall elicit the truth in this case, therefore, interference of this Court at this stage is unwarranted. Hence, seeks to dismiss the criminal petition.

6. Taking the same stand, learned Assistant Public Prosecutor submitted that unless the trial is conducted, the factum of the compliant or vice versa cannot be established and therefore, seeks to dismiss this criminal petition.

7. Having heard learned counsel for the petitioner, learned counsel for respondent No.2 and learned Assistant Public Prosecutor, this Court without making any observation on merits or demerits of the case, deems it appropriate to disposed of this criminal petition granting liberty to the petitioner to file appropriate application in accordance with law, before the trial Court seeking discharge, and upon filing the same, the trial Court shall consider the said application on merits and pass appropriate orders as expeditiously as possible preferably within a period of three (03) months thereon.

8. Accordingly, this criminal petition is disposed of.

Miscellaneous applications, if any pending, shall also stand closed.

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JUSTICE E.V.VENUGOPAL Date: 03.11.2025 pld THE HONOURABLE SRI JUSTICE E.V. VENUGOPAL

4294 CRIMINAL PETITION No.2743 of 2025 Date.03.11.2025 pld