According to the appellant the said Pay Order was got assigned to the companyplainant bank from M s. Poise Leasing and Finance Company Ltd. When the instrument was presented for clearance before the first accused bank on 18.12.1992 it was returned with the remarks funds uncleared.
It drew the Pay Order on 18.12.1992 in a sum of Rs.48.40 lacs, the relevant inscriptions of which are the following Payees account only To pay Punjab Sindh Bank M s. Poise Leasing and Finance Company Ltd. or order.
But a single Judge of the High Court of Bombay quashed the companyplaint mainly on the premise that the instrument described as the pay order is number a cheque.
When the accused filed a second writ petition in the High Court in challenge of the aforesaid order of the magistrate the learned single Judge allowing the said writ petition passed the impugned order.
The Punjab Sindh Bank has filed this appeal in challenge of the aforesaid order of the High Court.
The drawer bank and its officials have been arraigned as accused in the companyplaint.
The other is, the companyplainant was number a holder in due companyrse inasmuch as numberendorsement was made on the instrument in the manner prescribed under Section 50 of the Act and hence the companyplainant has numberlocus standi to file the companyplaint.
But the High Court dismissed the writ petition on 1.7.1999 without prejudice to the rights of the accused to make a plea before the trial companyrt for discharging the accused.
The holder thereof Punjab and Singh Bank filed a companyplaint under Section 138 of the Negotiable Instruments Act,1881 for short the Act .
THOMAS, J. Leave granted.
This case involves a queer situation when a Pay Order was dishonoured by the drawer bank.
Since the amount was number paid within the statutory period a companyplaint was filed on 9.3.1993.
Thereafter the accused moved the trial magistrate for recalling the process on the ground, inter alia, that the instrument is number a cheque as per Section 138 of the Act.
On process being served on the respondents a writ petition was filed by them before the High Court of Bombay for quashing the criminal proceedings.
