TaxTMI 
TaxTMI 
2000 (4) TMI 756
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 2. According to the allegations in the complaint, the complainant has been running finance business at Karimnagar as Om Sai Securities and Investments Private Limited. The accused approached the complainant for finance and sought a loan of Rs. 6,40,000. The complainant accordingly gave the amount and the accused executed the necessary agreement agreeing to pay interest at 24 per cent per annum quarterly. The accused also agreed to repay the entire amount within six months from the date of the agreement. The accused after receiving the amount issued four blank cheques amounting to Rs. 4 lakhs and agreed to issue share certificates together with transfer deeds but the accused did not give any share certificates to the complainant as per t....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... notice on 22-1-1999 through his advocate calling upon him for payment of the loan amount covered by the cheque within 15 days from the date of receipt of notice and the accused received the notice and got issued false reply on 7-2-1999 and later complainant has filed complaint in C.C. No. 210 of 1999 within the statutory period as the complainant did not receive the amount from the accused. 4. The proceedings against the petitioner in the relative calendar cases are sought to be quashed mainly on the ground that the cheques in question, photostat copies of which have been filed along with the petition, have been issued by Vijaya Industrial Gasses Limited and was signed by the Managing Director. But, the complainant has been filed agains....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e for discharging that loan was issued in favour of the complainant and there can be no bar in prosecuting the petitioner for the dishonour of that cheque. 9. It may be mentioned that it is agreed that in connection with the loan transaction, an agreement was entered into between the parties, a copy of which was filed along with the complaints and photostat copies of which are also filed along with these petitions. This agreement discloses that it was executed between D. Chandra Reddy, the petitioner herein and Mr. G. Prabhakar. It does not disclose that the agreement was between Vijaya Industrial Gasses Limited represented by D. Chandra Reddy the Managing Director and G. Prabhakar the Managing Director of Om Sai Securities and Investmen....
X X X X Extracts X X X X
X X X X Extracts X X X X
....company. It is obvious that the cheques were drawn on an account maintained by the company and not on the account maintained by the accused in his personal capacity. But the complaints disclose that the accused is sought to be prosecuted for the offence under section 138 not as Managing Director or any officer of the company but in his individual capacity. Inasmuch as there is nothing to show that the accused-petitioner herein issued the cheques on account maintained by him personally, the requirement of section 138 that the cheque should have been drawn by the accused on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for discharging in whole or in part of any debt or....