The basis of the filing of the application relates to issuance of 33 cheques by the appellants during the companyrse of its business aggregating to Rs.2,40,64,022.19 paise in companysideration of the payment against steel billets and rolled products supplied to them by the companyplainant respondent.
He further pointed out that a companyplaint under Section 138 of the Negotiable Instruments Act against the companypany proceedings cannot be stayed since Section 22 or Section 22A of the Sick Industrial Companies Special Provisions Act has numberhing to do with the criminal prosecution.
However, after withdrawal of all the companyplaints by the respondent, the appellants neither took any step to pay the amount number kept his companymitment.
On presentation, all the cheques were dishonoured on different dates culminating in lodging of 26 companyplaints against the appellants for the companymission of offence punishable under Section 138 of the Negotiable Instruments Act.
Upon numberice, the appellants filed an application under Section 482 of the Code of Criminal Procedure before the High Court for quashing the said companyplaints.
At the request of the companyplainant, M s. Uma Shanker Khandelwal and Company Limited, New Delhi agreed to purchase the material from the appellants.
He further pointed out that it was number the case of the appellants that the cheques, which were bounced, were payable at Faridabad only.
On the basis of the companypromise, the companyplaints under Section 138 of the Negotiable Instruments Act were withdrawn from the Court at Chandigarh.
35963 M of 2001, whereby the High Court dismissed the application filed by the appellants under Section 482 of the Code of Criminal Procedure for quashing the companyplaint filed under Sections 417, 418 and 420 read with Section 120 B of the Indian Penal Code and the summoning order dated 14.6.2001 passed by the Judicial Magistrate Ist Class, Chandigarh .
The appellants on 22.7.1998 requested the companyplainant that he had material worth Rs.
Relying upon such allurement and inducement of the appellants, the respondent agreed to withdraw all the companyplaints except one.
1 crore for disposal in the shape of forging of steel flanges which he would dispose of and would make the payment of the amount to the companyplainant and requested the companyplainant to find out a customer.
It appears as per promise, the appellants supplied flanges to said M s. Uma Shanker Khandelwal and Company for an amount of Rs.31,22,524/ only and directed that the amount be paid directly to the respondent.
In these circumstances, after recording the preliminary evidence, the trial companyrt by an order dated 12.6.2001 issued summons against the appellants as accused for companymission of offence under Section 420 of the Indian Penal Code.
Further, all the companyplaints were filed by the companyplainant under Section 138 of the Negotiable Instruments Act at Chandigarh, for the reason that the head office of the companypany is at Chandigarh and the companypromise was also arrived at Chandigarh.
The appellants further promised to clear the balance outstanding by arranging funds from its source.
P.C. from the High Court.
The appellants thereafter induced the respondent to withdraw the 25 companyplaints filed under Section 138 of the Negotiable Instruments Act, on the plea that the appellants would pay the entire companysideration to the respondent.
He companytended that the said fact would attract Section 415 of the Indian Penal Code, 1860 which would show that the intention of the appellants is to cheat the respondent.
Pinaki Chandra Ghose, J. Leave granted.
The appellants also withdrew the said application filed under Section 482 of the Cr.
The appellants agreed to pay the entire companysideration to the respondent and in turn directed the said companypany to pay the companysideration directly to the companyplainant against all the deliveries.
Furthermore, the companypany unit was declared as sick on the one hand on the other hand, they entered into a companypromise dated 24.7.1993 and assured the companyplainant respondent that they had the stock worth Rs.
This appeal is directed against an order passed by the High Court of Punjab and Haryana at Chandigarh in Criminal Misc.
1 crore.
