Allowed

J. Selvi v. State of Telangana

Telangana HC14 Dec 2022CRLP/2593/2021

Case brief

AI extract

What is this about?

The High Court allowed a criminal petition under Section 482 CrPC to quash proceedings under Section 138 NI Act. The Court held that the cheque issued for membership fees was not a legally enforceable debt, as the society could have declined membership and share certificates had the payment not been made.

What did the court decide?

Criminal proceedings in C.C.No. 15/2020 filed under Section 138 NI Act were quashed against the petitioner.

J. Selvi Vs State of Telangana — Cheque Dishonour | Telangana HC (2022)

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[^32s1 ]

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IN THE HIGH COURT FOR THE STATE OF^TELANGANA AT HYDERABAD

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WEDNESDAY, THE FOURTEENTH^{DAY OF DECEMBER} TWO THOUSAND AND TWENTY^TWO

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PRESENT

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THE HONOURABLE SRI JUSTICE K.SURENDER

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CRIMINAL P ETITION NO: 2593 OF²⁰²¹

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Between:

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J. Selvi, W/o Sri.R.Sai Gopal, Age. 42^{years, Occ. Employee, R/o Flat} No.A-73, Steel and Mines Complex, Sringar^{Colony, Hyderabad- 500} o7s

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...PETITloNEFJAccusED

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AND

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State of Telangana, Rep. by Public Prosecutor,^{High Court for the} State of Telangana, at Hyderabad.

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M/s Steel and Mines Employees Coop,^{House Building SocietyLtd,} Rep. by its Secretary Mr.K.K.Sastry, S/o^{Siva Rama Krishna, aged} about 75 years, Occ. Retd. From^{Mecon Limited, R/o Flat No.A-54'} Steel and Mines Complex, Srinagar^{Colony, Hyd 500 073.}

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.RESPONDENTS/DEFACTO COMPLAINANT

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Petition under Section 482 of Cr.P.C^{praying that in the} circumstances stated in the Memorandum of^{Grounds of Criminal} Petition, the High Court may be^{pleasedto quashthe proceedingsin} C.C.No.15/2020, on the file of^the Xll^{Special Magistrate Court,at} Hyderabad, for the offences^{punishable U/s138 of N.l.Act.}

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l.A. NO: 1OF 2021

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Petition under Section⁴⁸² ol^{Cr.P.C praying that in the} circumstances stated in the Memorandum^{of Grounds of Criminal} Petition, the High Court may be^{pleasedto stay all further proceedings} including appearance of the^{petitionerin connection with C.C.No.15 of} 2020, on the file of the Xll Special^{Magistrate Court,at Hyderabadfor} the offences punishable U/s 138 of^{N.l. Act.}

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This Petition coming on for^{hearing,uponperusing the} Memorandum of Grounds of Criminal^{Petition and upon hearing the} arguments of Sri G Vasantha Rayudu,^{Advocate for the Petitioner and} the Additional Public Prosecutor^{on behalf of the Respondent No.1and} of Sri K Sudershan, Advocate for the Respondent^No'2

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The Court made the following: ORDER

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I I

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THE HONOURABLE SRI JUSTICE K.SURENDER

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CRIMINAL PETITION No.2593 OF 202L

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ORDER:

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This Criminal Petition is filed under Section 482 of the Code of Criminal Procedure, 1973 (for short'Cr.p.C.') by the petitioner/Accused to quash the proceedings in C.C.No. lS of 2O2O on the file of the XII Special Magistrate Court at Hyderabad. The offence alleged against the petitioner/Accused is under Section 138 of the Negotiable Instruments Act.

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Heard learned counsel for the petitioner and learned Additional Public Prosecutor for the respondent-State. perused the record.

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Briefly, the facts of the case are that to become a member of the 2"a respondent-Society it is mandatory to pay the requisite fee of 2%o of the sale proceeds and on payment of the said amount, the Societ5z would issue membership in the apartment complex and also a share certificate. The petitioner/ accused had issued a cheque lbr Rs. 1,18,000/- to the 2.d respondent Society for identifying him as a member of the said society and also for the share certihcate that woutd be issued by the Society, but the said cheque was dishonoured.

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In the event of^{non-payment of the said amount it is for the} Society to decline^{membership of the petitioner and also not to} issue the share^{certificate for non-payment' The said cheque} which was issued^{is not a legally enforceabledebt, for the reason} of the said amount^{being towards membership in the said Society'} In the event of^{non-payment of the said amount' the said} membership^{and the share certif,rcate can be declined'}

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6 In view of the finding^{that the said amount of Rs'1,18,000/-} is not a legally^{enforceabledebt, the proceedingsagainst the} petitioner/ accused^{are liable to be quashed'}

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Accordingly, the^{CriminalPetitionis a'llowedquashing the} proceedings in C.C.No.1S^{of 2O2O on the file of the XII Special} Magistrate Court^{at Hyderabad, againstthe petitioner'}

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Miscellaneous applications^{pending, ifany, shall stand}

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closed.

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Sd/.T.SRINIVAS DEPUTY REGISTRAR //TRUE COPY// C-t) SECTION OFFICER

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To, 1 . The Xll Special Magistrate^{Courtat Hyderabad} 2. Two CCs'to the Public^{Prosecutor, High Court for the State of} Telangana at HYderabad. [OUT]

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One CC to Sri^{G Vasantha Rayudu, Advocate [OPUC]}

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One CC to Sri K.Sudershan,^Advocate [OPUC]

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Two CD Copies

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HIGH COURT

DATED:1411212022

ORDER

CRLP.No.2593 ot 2021

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ALLOWING THE CRIMINAL PETITION ,-q. @(.o?' w- io\do"

J. Selvi v. State of Telangana

Case brief

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J. Selvi v. State of Telangana

Case brief

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