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Issues: (i) whether a second application under Section 482 of the Code of Criminal Procedure, 1973 was maintainable on changed facts and with new material; (ii) whether the criminal proceedings under Sections 138 and 142 of the Negotiable Instruments Act, 1881 against a director who had resigned before the cheques were issued could be quashed.
Issue (i): whether a second application under Section 482 of the Code of Criminal Procedure, 1973 was maintainable on changed facts and with new material
Analysis: The earlier application had been dismissed without the benefit of the statutory Form 32 and without consideration of the resignation material subsequently placed on record. A fresh application under inherent jurisdiction is not barred where the later request rests on materially different circumstances and does not amount to a mere review of the earlier order.
Conclusion: The second application was maintainable.
Issue (ii): whether the criminal proceedings under Sections 138 and 142 of the Negotiable Instruments Act, 1881 against a director who had resigned before the cheques were issued could be quashed.
Analysis: The resignation of the appellant before the alleged issuance of the cheques was not in dispute, and the complaint did not contain any allegation that the cheques were post-dated or that the appellant remained responsible for the company's affairs after resignation. In those circumstances, continuation of the proceedings against him alone would be unjustified.
Conclusion: The proceedings against the appellant were liable to be quashed.
Final Conclusion: The appeal succeeded and the proceedings against the appellant were set aside, leaving the complaint to proceed only against others, if so advised.
Ratio Decidendi: A successive application under Section 482 of the Code of Criminal Procedure, 1973 is maintainable when it is founded on changed circumstances or newly produced material, and criminal process against a resigned director cannot continue absent a basis showing responsibility at the time of the offence.