security for the supply of fibres and the same has also been acknowledged by the respondent. There is no legally enforceable debt or liabilities as alleged by the respondent. On 21.11.2016, the petitioners' manufacturing textile unit met with a fire accident. Due to that, the entire stock materials, machinery and the whole factory premises were destroyed and thereby, they sustained loss to the tune of Rs.9 crores. The respondent had also issued a letter dated 26.06.2018 demanding the payments for the supply of PSF materials as on 31.05.2018 with interest and the petitioners also issued a reply letter dated 07.07.2018 regarding the fire accident and also explained that the petitioners' insurance claim was also made through arbitration proceedings. The respondent knowing the facts and circumstances of the petitioners and also knowing that the petitioners' accounts and other assets were frozen by the authorities, filed the present cheque case, which was issued for security purpose. Therefore, the pending proceedings in C.C. No.1638 of 2018 are abuse of process of law and the same are liable to be quashed.
