The Madras High Court dismissed a petition seeking quashing of a Section 138 NI Act complaint, holding that validity of debt and cheque issuance are factual issues for trial. Bail granted to petitioners.
Petition dismissed; bail granted to each petitioner on executing a bond for Rs. 10,000 with two sureties.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 07.12.2021
CORAM
THE HONOURABLE MR.JUSTICE N.SATHISH KUMAR
CRL. O.P. NOS.2736 OF 2017 AND CRL.M.P.NOS.3164,1935 &1936 & OF 2017
1.Anuragha Poultries and Breeders Private Limited, Rep. by its Director, K.Kothandapani,
No.77, Dhali Road, Sri Senthoor Complex, Opp.to Udumalpet Municipal Office, Udumalpet.
2.K.Kothandapani
...Petitioners
Vs.
S.K.Bala Vasanthakumar ...Respondent
PRAYER:
Criminal Original Petition filed under Section 482 of Criminal Procedure Code, praying to quash the complaint in C.C.No.172 of 2016 on the file of Judicial Magistrate 1, Udumalpet.
For Petitioners : M/s.Kaavya Silambanan For Respondent : No appearance
ORDER
This Criminal Original Petition has been filed to to quash the complaint in C.C.No.172 of 2016 on the file of Judicial Magistrate 1, Udumalpet.
petitioners approached him for hand loan for their company and on 10.05.2016, he lent a sum of Rs.11,00,000/- to the second petitioner/A2 on promise that the same would be repaid by him within a month. Thereafter, the 2nd petitioner gave a post dated cheque on the same day drawn on Indian Overseas Bank, Udumalpet Branch dated 13.06.2016 towards the above debt. When the cheque was presented for encashment on 13.06.2016, the same was returned for the reason "account have been closed by the company". After complying the statutory notice, the defacto complainant has filed the complaint.
3.Learned counsel for the petitioner submitted that the main ground on which the quashment of proceedings is sought for before this Court is that there is no legally enforceable debt. He further submitted that the complaint has been initiated due to collusion with the Ex-Auditor of the company and all the documents were originally in the hands of the Auditor, which has misused by the present complainant and the cheque was not issued by the petitioners. Hence, the proceedings has to be quashed.
absconds, a fresh FIR can be registered under Section 229 A of the Indian Penal Code. Consequently, connected Criminal Miscellaneous Petitions are closed.
Sd/Assistant Registrar(CS IV)
//True Copy//
Sub Assistant Registrar
nr/msv
To
Crl. O.P. Nos.2736 of 2017 and CRL.M.P.Nos.3164,1935 &1936 of 2017
EV(CO) PM/28/12/2021
2 issues framed by the court
Whether the High Court can quash criminal proceedings under Section 138 of the Negotiable Instruments Act at the stage of setting aside the complaint.
Whether the validity of the issuance of the cheque and the existence of a legally enforceable debt are triable issues suited for quashing under Section 482 CrPC.
Colour shows how this judgement treated each authority
State of Haryana and Others v. Bhajanlal and OthersRelied on¶21
STATE OF HARYANA AND OTHERS Vs. BHAJANLAL AND OTHERS 1992 Supp (1) Supreme Court Cases 335
4 provisions across 3 enactments
Anuragha Poultries and Breeders Private Limited
K. Kothandapani
S. K. Bala Vasanthakumar
N. Sathish Kumar
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
