KRISHNA SACHDEVA Vs. MODELLA KNITWEAR

JUDGEMENT

(1.) PETITIONER is seeking quashment of complaint filed under Section 138 of Negotiable Instruments Act against her as Director of M/s. M.S. Shoes East Limited 5-NWA, Punjabi Bagh Extension, New Delhi. Respondent filed a complaint under Section 138 of the Act against M/s M.S. Shoes East Limited through its Managing Director, Shri Pawan Sachdeva, Ms. Sadhna Sachdeva and Ms. Krishna Sachdeva (petitioner) as Directors of the said company. Respondent averred that the accused were to discharge a liability of Rs. 1,53,48,740/-. In order to discharge its part of the liability accused No. 2 issued a cheque for Rs. 50,97,330/- only payable at Oriental Bank of Commerce at New Delhi on 28.10.1995. He was assured that he cheque will be encashed. When the complainant-respondent presented the cheque in the said bank for clearance, the cheque was retuned with memo dated 27.2.1996 bearing remarks "In sufficient funds". He gave a notice to the accused persons to make payment but despite receipt of notice, no payment its made. Hence the complaint.

(2.) PETITIONER 's contention is that she is non-working Director aged 85 years; she is mother of accused No. 2. After filing of the complaint Rs. 20 Lacs were paid to the complainant-respondent who entered into a compromise with accused persons and agreed to withdraw this complaint, but despite that he is prosecuting his complaint. A receipt was issued in lieu of the acceptance of payment of Rs. 20 lacs, but now he has started disputing execution of the said receipt and is also asserting that Rs. 20 lacs were paid against the other outstanding liabilities of the accused-company.

(3.) THE other points raised in the petitioner were not pressed at the time of arguments.