The determination of vicarious liability under Section 141 of the Negotiable Instruments Act for current society members regarding transactions of previous management involves disputed questions of fact and internal liability assignment, which are triable issues that cannot be quashed under Section 482 of the Cr.P.C. at a preliminary stage.

Between:

M/s.R.R.M. Educational Society

Rep. by its President & Secretary,

Mr.Kedari Joseph Sriharsha Shashank

and others … Petitioners/

Accused

AND

The State of Telangana,

rep. by its Public Prosecutor,

High Court for the State of Telangana

at Hyderabad and another … Respondents

::ORDER::

This Criminal Petition is filed by the petitioners – accused seeking to quash the proceedings in C.C.No.5247 of 2022 on the file of the learned Special Judicial Magistrate of First Class (Mobile) under PCR Act-cum-II Additional Junior Civil Judge at Hanumakonda, Hanumakonda District, registered for the offences under Section 138 read with Section 142 of Negotiable Instruments Act.

2. The case of the complainant is that accused No.1 is a registered Educational Society represented by its President and Secretary Mr.Kedari Joseph Sriharsha Shashank, who is arrayed as accused No.2, accused No.3 is the Vice President and Treasurer, accused No.4 is the Joint Secretary, accused No.5 is the correspondent, accused Nos.6 to 8 are the members of the accused society. It is submitted that the accused society was not having its own building to run its college, hence, the then management committee during 2008 intended to purchase the property in the name of M/s.R.R.M.Educational Society for the purpose of having its own independent premises. Consequently, the then management committee has purchased a building with a constructed area of 75000 sft over an area of Ac.08-00 at Patancheru by way of registered sale deed from M/s.Trans Asia Overseas Trading Corporation for a total sale consideration of Rs.14,50,00,000/-. M/s.R.R.M.Educational Society was not having its own resources to meet the sale consideration and thus, it decided to raise loans from the complainant society i.e. Aurora Educational Society, Ravi Rishi Educational Society, Karshak Vidya Parishad and from their sponsored colleges and also from one Mrs.Yashoda, W/o.late N.Seethaiah. It is the further case of the complainant that M/s.R.R.M.Educational Society has passed a resolution to raise a loan amount of Rs.15,87,258/- from the complainant society and that M/s.R.R.M.Educational Society also resolved to repay the above said loan amount of Rs.15,87,258/- to the complainant society on interest free basis by October, 2018. Consequently the complainant society has passed a corresponding resolution to accept the repayment of above said loan on interest free basis within the stipulated time. That acknowledging the receipt of loan amount of Rs.15,87,258/- from the complainant society, the M/s.R.R.M.Educational Society represented by it’s the then authorized signatory who is accused No.9 has issued a postdated cheque dated 15.10.2018 to the complainant society, drawn on IDBI Bank, Basheerbagh branch for a sum of Rs.15,87,258/-. It is further submitted that in pursuance to an understanding to transfer the management of M/s.R.R.M.Educational Society, accused Nos.2 to 4 were admitted as members of the society with effect from 28.12.2012 and a new managing committee consisting of accused Nos.2 to 4 were elected with effect from 05.09.2013. Consequently, the old committee members of M/s.R.R.M.Educational Society including accused No.9 resigned from the executive committee and from the primary membership of M/s.R.R.M.Educational Society and that accused Nos.2 to 8 formed new managing committee. Further, at the time of handing over of the managing committee of A1 society by A2 to A8, they were well informed about the existing liabilities of A