A cheque issued under a contract that specifically stipulates the contract becomes null and void upon the cheque's dishonour does not create a 'legally enforceable debt' under the relevant act, rendering criminal prosecution for dishonour unsustainable.

COMMON ORDER:

Since the issue involved in both these Criminal Petitions is one and the same, both these Criminal Petitions are heard together and disposed of by way of this common order.

2. Seeking to quash the proceedings in S.T.C.NI.No.558 of 2023 on the file of learned V Metropolitan Magistrate, Hyderabad, registered for the offence under Section 138 read with 141 of the Negotiable Instruments Act, 1881 (for short, ‘N.I. Act’), Crl.P.No.4271 of 2023 is filed by accused Nos.4 to 8 and Crl.P.No.4565 of 2023 is filed by accused Nos.1 to 3.

3. Heard Sri R. Anurag, learned counsel for the petitioners in Crl.P.No.4271 of 2023, Sri M. Pratheek Reddy, learned counsel for the petitioners in Crl.P.No.4565 of 2023 and Sri Sushil K. Tekriwal, learned counsel representing Sri M. Bhaskar, learned counsel for respondent No.2.

4. For the sake of convenience, the parties are hereinafter referred to as they were arrayed in the complaint.

5. The case of the complainant is that he is into real estate business. His wife, Mrs. Sushma Khandelwal, who has now since expired on 02.12.2022, is represented through her legal heir Manoj Khandelwal, who is the complainant herein. The deceased has bequeathed her share of the subject property to the complainant herein by virtue of a Will, dated 26.09.2021. The case of the complainant is that he purchased agricultural dry land admeasuring Ac.26-20 guntas in Survey Nos.1276 and 1281 situated at Nandigama Village of Mahabubnagar District from Venkat Rao Memorial Trust vide registered Sale Deed bearing document No.5855 of 2005, dated 01.12.2005. Similarly, late Sushma Khandelwal, during her lifetime, purchased agricultural dry land admeasuring Ac.24-34 guntas in Survey Nos.1272 and 1275 situated at Nandigama Village from the said Trust vide registered Sale Deed bearing document No.5858 of 2005, dated 01.12.2005. It is his case that in both the Sale Deeds, the Trust and the trustees commonly represented that it is resolved to sell the subject lands on their part to the intending purchasers for the benefit of the school, since no income was accrued from the Trust lands; that the Trust is the sole and absolute owner and possessor of the subject lands; that the school run by the Trust requires lot of funds to run the school; and that the funds were also required to further develop the school to provide sufficient accommodation. The complainant further submits that himself and late Sushma Khandelwal have paid the entire sale consideration of Rs.10,36,250/- and Rs.9,73,690/- respectively. Consequently, they became the absolute owners and possessors of the subject lands and all the documents relating to the subject lands were handed over to them and the sale consideration paid under the said sale transactions is also declared in the Income Tax returns. Thus, the sales are legally valid.

6. It is the further case of the complainant that similarly he has paid the entire sale consideration from his own account for two more subject properties i.e., agricultural dry land admeasuring Ac.25-21 guntas in Survey Nos.1271 and 1274, situated at Nandigama Village vide registered Sale Deed bearing document No.5856 of 2005, dated 01.12.2005, executed by the trustees, namely, Dr. T.V. Narayana, late B. Madhava Reddy and P. Brahmananda Chary, in the name of one A. Praveena, and agricultural dry land admeasuring Ac.25-17 guntas in Survey Nos.1270 and 1282 situated at Nandigama Village, Mahabubnagar District, vide registered Sale Deed bearing document No.5857 of 2005, dated 01.12.2005, executed by the trustees, namely Dr