R.K.VERMA Vs. KRISHNA TEXOPORT INDUSTRIES LTD

JUDGEMENT

(1.) The Petitioners in Writ Petition Nos. 2650 of 2004 and 2653 of 2004, who are the accused Nos. 5 and 6 respectively in C.C. No. 529/S/2002 and in connected writ petition Nos. 2651 of 2004 and 2652 of 2004, they were the accused Nos. 5 and 6 in C.C. No. 1366/S/2002, which were earlier pending on the file of the Metropolitan Magistrate, 40th Court, Girgaum, Mumbai and presently pending before the learned Metropolitan Magistrate, 14th Court, Girgaum, Mumbai, have challenged the orders dated 29th April, 1998 and 30th March, 2000 of issuance of process under section 138 read with section 141 of the Negotiable Instruments Act.

(2.) The Respondent No. 1-M/s. Krishna Texoport Industries Ltd. had lodged a complaint No. 529/S/2002 against the Petitioners-the accused Nos. 5 and 6 and the other accused. It was the case of the complainant that the accused No. 1-Company had issued two cheques viz. Cheque No. 789715 dated 29th December, 1997 for Rs. 50,00,000/- and Cheque No. 789716 dated 17th January, 1998 for Rs. 50,00,000/- towards discharge of their legally enforceable debt. The said cheques were dishonoured and despite receipt of the statutory notice, the accused No. 1-Company and its Directors did not pay the cheques amount. The Respondent No. 1-complainant therefore, initiated proceedings against accused No. 1-Company and its Directors for the offence punishable under section 138 of the Negotiable Instruments Act. Present Petitioners have been arrayed as accused Nos. 5 and 6 being the Directors of the accused No. 1-Company.

(3.) The learned counsel for the Petitioners has submitted that the averments in the complaint do not satisfy the requirement of section 141 of the Negotiable Instruments Act. The learned counsel for the Petitioners has further submitted that the Petitioners had resigned as Directors much before the issuance of the subject cheques and as on the date of the offence, they were neither in-charge of nor responsible for the conduct of the business of the Company.