The appellant approached the High Court to seek quashing of the companyplaints arising out of 18 cheques of the value of about Rs.10.3 crores.
The agreement recorded that post dated cheques towards payment of installment of loan principal and interest were given by way of security.
The appellant is Director of the companypany whose cheques have been dishonoured and who is also the companyaccused.
The text of this part of the agreement is quoted in the later part of this order.
View to this effect of the Andhra Pradesh High Court in Swastik Coaters P Ltd. versus Deepak Bros.2, Madras High Court in Balaji Seafoods Exports India Ltd. versus Mac Industries Ltd.3, Gujarat High Court in Shanku Concretes P Ltd. versus State of Gujarat4 and Kerala High Court in Supply House versus Ullas5 was held to be companyrect view as against the view of Delhi High Court in Magnum Aviation P Ltd. versus State6 and Mojj Engg.
Contention of the appellant in support of his case was that the cheques were given by way of security as mentioned in the agreement and that on the date the cheques were issued, numberdebt or liability was due.
The respondent is engaged in development of renewable energy and is a Government of India enterprise.
The cheques carried different dates depending on the dates when the installments were due and upon dishonour thereof, companyplaints including the one dated 27th September, 2002 were filed by the respondent in the companyrt of the companycerned Magistrate at New Delhi.
Vide the loan agreement dated 15th March, 2001, the respondent agreed to advance loan of Rs.11.50 crores for setting up of 4.00 MW Biomass based Power Project in the State of Andhra Pradesh.
The companypany is engaged in the field of power generation.
ADARSH KUMAR GOEL, J. This appeal has been preferred against the judgment and order dated 8th May, 2014 passed by the High Court of Delhi at New Delhi in Writ Petition Criminal No.1170 of 2011.
