2012 (11) TMI 1323 - HC - Indian Laws

Court upholds summoning order in case seeking to quash criminal complaint under Negotiable Instruments Act

The court upheld the summoning order in a case where the petition sought to quash a criminal complaint under the Negotiable Instruments Act. It was held ... - Issues involved: Petition filed u/s 482 Cr. P.C. seeking quashing of Criminal Complaint No. 650/NA/2012 u/s 138 read with 141 of Negotiable Instruments Act, 1881 and setting aside the summoning order dated 2nd July, 2012.Details of the judgment:Issue 1: Compliance with Section 202 Cr. P.C.- Petitioners argued that the trial court did not comply with the mandatory requirement of Section 202 Cr. P.C.- Cited judgment of K.T. Joseph vs. State of Kerala and Anr., (2009) 15 SCC 199 emphasizing the mandatory nature of the enquiry under Section 202 post the 2006 amendment.- Court noted that the Magistrate had conducted an enquiry prior to issuance of summons as per Section 202 Cr. P.C.- Held that the summoning order was valid as the Magistrate had perused all documents, heard arguments, and led evidence before issuing summons.Issue 2: Allegations against the petitioners- Complaint alleged that accused directors were responsible for day-to-day business and financial decision making of the company.- Supreme Court precedent in K.K. Ahuja case stated that such allegations may be sufficient for issuing summons to directors.- Court opined that the averments in the complaint were adequate for summoning the petitioners, allowing them to present evidence to prove their non-involvement in the company's management.Conclusion:- Court found no merit in the petitions and upheld the summoning order.- Granted exemption from personal appearance to a petitioner due to age and retired status.- Disposed of the petitions and pending applications accordingly.