K V SRIDHAR Vs. N KRISHNASAMY

JUDGEMENT

(1.) This quash petition is filed to quash the criminal proceedings in C.C.No.49 of 2010 on the file of the Judicial Magistrate No.1, Dindigul filed for the offence under Section 138 of Negotiable Instrument Act.

(2.) The case of the respondent/complainant is that the complainant is a private limited company. On behalf of the company to file civil and criminal cases delegated the powers to its Managing Director Mr.Krishnasamy. To that extent, the company also passed a Board resolution. In turn, the Managing Director delegates his powers to the Accounts Manager by the power of attorney to lodge a complaint on behalf of the complainant company. The complainant's company supplied cotton yarn to the accused M/s.S.S.Agency on credit basis. From time to time, the accused Agency used to settle the amount through cheques. While being so, from 03.04.2009 to 15.09.2009, the complainant company supplied cotton yarn to the tune of Rs. 6,44,000/- from the first unit of the complainant company and for a sum of Rs. 1,28,880/- from the second unit of the complainant company. IN this regard, towards repayment of the same, on 16.09.2009, the first accused issued cheque bearing No.270817 dated 21.10.2009 for a sum of Rs. 7,73,280/- in favour of the complainant company. This cheque has been issued by the first accused on behalf of M/s.S.S.Agency as a partner. The second accused is also one of the partner of M/s.S.S.Agency and he knows very well about the issuance of cheque and both the partners are very much looking after the day-to-day affairs of the S.S.Agency. The said cheque was presented on 210.2009 and the same was returned dishonoured for the reason 'insufficient funds' on 26.10.2009.

(3.) The learned counsel appearing for the petitioners/accused raised the following grounds for quashing the complaint.