Andhra Pradesh High Court - Amravati
Namburi Venkateswara Naidu, vs Sarisha Financial Services ... on 22 July, 2021
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CMR, J.
Crl.P.No.1533 of 2021
THE HON'BLE SRI JUSTICE CHEEKATI MANAVENDRANATH ROY
Criminal Petition No.1533 of 2021
ORDER:
This Criminal Petition under Section 482 Cr.P.C. is filed by
the petitioners seeking quash of criminal proceedings against them
in C.C.No.543 of 2020 on the file of the Court of VII Special
Magistrate, Visakhapatnam.
2) Despite service of notice on the 1st respondent, none
appeared on its behalf.
3) Heard learned counsel for the petitioners and learned
Additional Public Prosecutor for 2nd respondent State.
4) The petitioners are accused Nos.3 to 8 in C.C.No.543 of 2020
on the file of the Court of VII Special Magistrate, Visakhapatnam.
They have been facing the prosecution for the offence punishable
under Section 138 of the Negotiable Instruments Act.
5) It is the case of the complainant in the above case, that A-1
is a Society in the name and style of "M/s.Ravindrabharathi
Educational Society" and A-2 by name Mannuru Subrahmanyam
is the President and Correspondent of A-1 Society. A sum of
Rs.6.00 Crores was borrowed by A-1 Society from the complainant
and A-2 has executed 12 promissory notes, each for
Rs.50,00,000/-, on 11.01.2018 in favour of the complainant
regarding the said amount that was borrowed on behalf of A-1
Society. Thereafter, A-2 has issued 8 cheques in the month of
March, 2019 towards discharge of the said borrowed amount and
the said cheques were dishonoured. Therefore, the aforesaid case
CMR, J.
Crl.P.No.1533 of 2021
for the offence under Section 138 of the Negotiable Instruments Act
was filed against A-1 Society and its President and Correspondent
A-2 and also against the petitioners herein, who are accused Nos.3
to 8, who are the employee and other directors of the A-1 Society.
6) The petitioners sought quash of the said criminal
proceedings against them on the ground that they did not give any
such cheques and simply because they are involved in day-to-day
affairs of the A-1 Society in their capacity as directors or otherwise
of the said Society, they cannot be liable for prosecution for the
offence under Section 138 of the Negotiable Instruments Act.
Therefore, on the aforesaid grounds they sought for quash of the
said criminal proceedings against them in the above case.
7) Learned counsel for the petitioners would submit that earlier
the petitioners herein who are also accused in similar cases in
C.C.Nos.909, 910 and 911 on the file of II Special Magistrate,
Visakhapatnam and C.C.No.841 of 2019 on the file of IV Special
Magistrate, Visakhapatnam, approached this Court seeking quash
of criminal proceedings launched against them under Section 138
of the Negotiable Instruments Act on the ground that they cannot
be made liable for prosecution on simple ground that they are
involved in day-to-day affairs of the A-1 Society and this Court in
Crl.P.Nos.7291, 7292, 7293 and 7709 of 2019, by its common
order, dated 21.01.2020, quashed the said criminal proceedings
against them, who are A-3 to A-8, while relying on the dictum laid
down by the Apex Court in Ashoke Mal Bafna v. Upper India
CMR, J.
Crl.P.No.1533 of 2021
Steel Manufacturing and Engineering Co. Ltd.1 and 2010 Law
Suit (SC) 62, wherein it is held that the bald averment that the
petitioners are involved in day-to-day affairs of the company is not
enough to prosecute them. Therefore, learned counsel for the
petitioners would submit that the petitioners, who are similarly
placed, are also entitled for quash of the criminal proceedings in
view of the aforesaid covered common order.
8) The petitioners, who are A-3 to A-8, are not the persons, who
borrowed money on behalf of A-1 Society. Similarly, they are also
not the persons, who signed the cheques and issued the same
towards discharge of the borrowed amount to the complainant. It
is only A-2, who issued the cheques in question, towards discharge
of the said debt, as per the version of the complainant. Therefore,
the petitioners, who are not the signatories to the cheque/cheques
in question, cannot be made liable for the offence punishable
under Section 138 of the Negotiable Instruments Act. Simply
because they are involved in day-to-day affairs of the A-1 Society,
they cannot be prosecuted for the offence under Section 138 of the
Negotiable Instruments Act.
9) Therefore, for the aforesaid reasons and in view of the earlier
common order of this Court, dated 21.01.2020, in Crl.P.No.7291 of
2019 and batch and considering the law laid down by the Apex
Court in the above cited judgments, this Criminal Petition is
allowed quashing the criminal proceedings initiated against the
petitioners herein, who are A-3 to A-8, in C.C.No.543 of 2020 on
the file of the Court of VII Special Magistrate, Visakhapatnam.
(2019) 1 SCC (Cri) 568 = (2018) 14 SCC 202
CMR, J.
Crl.P.No.1533 of 2021
However, it is made clear that the criminal proceedings in the
above C.C.No.543 of 2020 on the file of the Court of VII Special
Magistrate, Visakhapatnam, against A-1 and A-2, shall go on.
Consequently, miscellaneous applications, pending if any,
shall also stand closed.
________________________________________________
JUSTICE CHEEKATI MANAVENDRANATH ROY
Date:22.07.2021.
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