THE HONOURABLE SRI JUSTICE N.TUKARAMJI CRIMINAL PETITION No. 1683 OF 2024

ORDER

This petition is filed under Section 482 of the Code of Criminal Procedure,1973 (CrPC) seeking quashment of the proceedings in S.T.C. (NI) No.790 of 2022, on the file of learned I Additional Junior Civil Judge-cum-XII Additional Metropolitan Magistrate, Medchal- Malkajgiri District at Kukatpally, against the petitioners/accused Nos.4 and 5.

2. I have heard Mr.T.Bala Mohan Reddy, learned counsel for petitioners, Mr.Jithender Rao Veeramalla, learned Additional Public Prosecutor appearing for the respondent No.1-State.

3. The petitioners are arrayed as accused Nos.4 and 5 in S.T.C. (NI) No.790 of 2022 facing accusation under Section 200 of Cr.P.C r/w. Section 138 of Negotiable Instruments Act,1881(foe short ‘the NI Act’).

4. Stripped of extraneous detail, the petitioners serve as Directors of Accused No. 1 Company. Respondent No. 2 demanded repayment of an aggregate amount of Rs.13,91,992/-. In purported discharge of this liability, Accused No. 1 issued a cheque dated 31.03.2021. Upon presentation to its banker, HDFC Bank Limited, Vivekananda Nagar Colony, Kukatpally the cheque was returned unpaid on 25.06.2021, with the endorsement ‘funds insufficient.’ It is stated that a legal notice was issued on 09.07.2021, whereafter the complaint.

5. Learned counsel for the petitioners submits that, although the petitioners were formerly Directors of the company, they had tendered their resignations in the years 2011 and 2013, respectively. The transaction forming the subject matter of the complaint is alleged to have occurred subsequent to their resignations. Therefore, initiating or continuing criminal prosecution against them constitutes a clear abuse of the process of law. It is contended that the trial court, without duly appreciating this foundational fact, has proceeded with the matter. In view of the foregoing, learned counsel prays that this Hon’ble Court may be pleased to exercise its inherent jurisdiction and quash the proceedings insofar as they pertain to the petitioners, arrayed as Accused Nos. 4 and 5.

6. I have perused the materials placed on record.

7. As per the entries recorded in Form 32 maintained by the Registrar of Companies, Petitioner No. 1 tendered his resignation from Accused No. 1 Company with effect from 01.04.2011, and Petitioner No. 2’s resignation took effect from 31.08.2013. The cheque in question was issued on 30.03.2021. Thus, as on the date of issuance of the cheque, the petitioners were no longer Directors of the said company. In view of this essential and undisputed fact, the continuation of criminal proceedings against the petitioners constitutes a manifest abuse of the process of law. Accordingly, the proceedings against them are liable to be quashed, and are hereby quashed.

8. Accordingly, this Criminal Petition is allowed. Consequently, the proceedings against the petitioners, arrayed as Accused Nos. 4 and 5, in S.T.C. (NI) No. 790 of 2022, pending on the file of the learned I Additional Junior Civil Judge-cum-XII Additional Metropolitan Magistrate, Medchal-Malkajgiri District at Kukatpally, are hereby quashed.

Pending miscellaneous applications, if any, shall stand closed.

_____________________ JUSTICE N.TUKARAMJI Date: 29.07.2025

CHS