Court quashes complaint in favor of property owners settling with tenant.

The court quashed the complaint in STC.No.383 of 2020, ruling in favor of the petitioners, owners of a property, who had settled the outstanding amount with the respondent, a tenant running a hotel business, before the complaint was filed. Despite the petitioners' efforts to resolve the issue and the extraordinary circumstances of financial constraints during the Covid-19 lockdown, the respondent's refusal to withdraw the case was deemed unjust, leading to the court's decision to quash the complaint.

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Issues:
Quashing of case in STC.No.383 of 2020 on the file of Judicial Magistrate No.II, Chidambaram.

Analysis:
1. The petitioners, owners of a property, entered into an agreement with the respondent, a tenant running a hotel business, to return possession of the premises with interiors and items for a sum of Rs.88,00,000. The petitioners paid Rs.3,00,000 by cheque and issued postdated cheques for the balance amount. Due to financial constraints during the Covid-19 lockdown, they requested time to arrange funds for the last cheque, but the respondent presented it prematurely, causing it to bounce.

2. The petitioners raised funds, sent a Demand Draft to the respondent, and explained the delay in payment. Despite settling the amount, the respondent filed a complaint under Section 138 of the Negotiable Instruments Act. The petitioners appeared in court, reported the payment, and requested withdrawal of the case, but the respondent refused to compromise or withdraw the complaint.

3. The respondent argued that since the last cheque was dishonored, the complaint was valid, citing Supreme Court rulings on the matter. The respondent insisted on interests and costs, claiming the petitioners had not paid them, thus justifying the continuation of the case.

4. The court found that the petitioners had settled the amount before the complaint was filed, and the respondent's refusal to withdraw the case was unjust. The court rejected the respondent's reliance on Supreme Court rulings, emphasizing the extraordinary circumstances of the case, akin to Shakespeare's "Shylock," where the respondent's actions were deemed an abuse of the court process.

5. Ultimately, the court allowed the Criminal Original Petition, quashing the complaint in STC.No.383 of 2020, highlighting the respondent's unjust behavior and the petitioners' efforts to settle the matter, despite facing financial challenges during the pandemic lockdown.

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