EXPORTS INDIA Vs. STATE

JUDGEMENT

(1.) M/s. Surbhi Wears Pvt. Ltd. (respondent No.2 herein) has filed complaint under Section 138/141/142 of the Negotiable Instruments Act against the petitioner herein. In the said complaint summoning orders have been passed by the learned MM and challenging these summoning orders, present petition is filed by the petitioners. The complaint is founded on the dishonour of cheque bearing No. 154832 drawn on Dena Bank, Bhowanipore, Calcutta.

(2.) IN this petition filed by the petitioners, summoning order is challenged. It is stated that there was an Agency Agreement entered into between M/s. Bumpi Udyog and M/s. Exports INdia whereby M/s. Exports INdia (petitioner No.1 herein) was appointed as agent of M/s. Bumbi Udyog for the sale of products of M/s. Bumpi Udyog in certain territories specified in the said agreement. As a security of the said agency agreement the petitioner No.l had given two blank cheques, including the cheque in question as stipulated in para 9 of the said agreement which reads as under:-

(3.) AFTER hearing the learned counsel for the petitioner I am of the opinion that this petition warrants to be allowed. It is obvious from the agreement in question that the same was entered into on 11.2.1999 between M/s. Bumpi Udyog and the petitioner No.1 and this agreement specifically records giving of blank cheques bearing No. 154832 and 154833 to M/s. Bumpi Uhyog. It is clear that the blank cheque was given as a security of the agency agreement and it is nowhere stated that there is any violation of the terms and conditions of the said agreement. The case made out in the complaint is that certain dues were payable by the petitioner No.1 to the complainant and in discharge of the said liability the cheque in question was issued as is clear from the following averments made in para 5 of the complaint, which reads as under:-