Court denies quashing Criminal Petition under Section 138 NI Act, directs trial on employment dispute & cheque issuance

The High Court dismissed the Criminal Original Petition, refusing to quash the proceedings under Section 138 of the Negotiable Instruments Act. The court held that the issues concerning the employment dispute and the issuance of the cheque should be determined during the trial, rejecting the petitioner's arguments at this stage. The petitioner was allowed to raise relevant points before the trial court, with the connected miscellaneous petition being closed.

---

---

Issues Involved:
1. Quashing of complaint under Section 138 of the Negotiable Instruments Act.
2. Role and liability of the petitioner in the issuance of the dishonored cheque.
3. Applicability of arbitration clause in the employment agreement.
4. Jurisdiction of the High Court under Section 482 Cr.P.C. to quash the proceedings.

Issue-wise Detailed Analysis:

1. Quashing of Complaint under Section 138 of the Negotiable Instruments Act:
The petitioner sought to quash the complaint filed under Section 138 of the N.I. Act, arguing that the cheque in question was issued by the second accused, Mr. Saravanan, in his individual capacity, and not by the petitioner or the company. The petitioner contended that the cheque did not bear the company's seal and was not authorized by the company. The court observed that the cheque was indeed issued by Mr. Saravanan, and the defacto complainant claimed it was for salary arrears. The court concluded that the issue of whether the cheque was issued in a personal or official capacity could only be determined during the trial.

2. Role and Liability of the Petitioner:
The petitioner argued that the cheque was issued by Mr. Saravanan in his personal capacity and not by the company, VT Manpower Consultancy Services Private Limited. The respondent claimed that the cheque was issued by Mr. Saravanan as the General Manager of the company for salary dues. The court noted that the complaint was filed against the company and Mr. Saravanan jointly and severally. The court emphasized that the determination of the capacity in which the cheque was issued and the liability of the petitioner required a detailed examination of evidence, which could only be done at the trial stage.

3. Applicability of Arbitration Clause in the Employment Agreement:
The petitioner highlighted Clause 19 (Arbitration) of the employment agreement, which mandated arbitration for resolving disputes arising out of the agreement. The court acknowledged the existence of the arbitration clause but noted that the arbitration process had not been initiated by either party. The court held that the presence of an arbitration clause did not preclude the filing of a complaint under Section 138 of the N.I. Act, as the criminal proceedings were independent of the contractual arbitration process.

4. Jurisdiction of the High Court under Section 482 Cr.P.C.:
The petitioner invoked Section 482 Cr.P.C. to quash the proceedings, citing judgments from the Supreme Court. The court referred to the Supreme Court's rulings in Devendra Prasad Singh Vs. State of Bihar & Anr., Central Bureau of Investigation Vs. Arvind Khanna, and M. Jayanthi Vs. K.R. Meenakshi & anr., which clarified that the High Court should not engage in a detailed examination of evidence or disputed facts while exercising its inherent jurisdiction under Section 482 Cr.P.C. The court concluded that the petitioner's grounds for quashing the complaint could not be entertained at this stage and should be addressed during the trial.

Conclusion:
The court dismissed the Criminal Original Petition, stating that the petitioner's request to quash the proceedings in C.C. No. 4965 of 2014 could not be accepted. The court emphasized that all aspects regarding the employment dispute and the issuance of the cheque should be decided by the trial court. The petitioner was granted the liberty to raise all relevant grounds before the trial court. Consequently, the connected miscellaneous petition was also closed.

---