TaxTMI 
TaxTMI 
2017 (10) TMI 217
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....ishonour was sent only to the Directors of the Company and not to the Company as such. Relying upon a judgment of this Court reported in 2014 (3) CTC 358 (T.R.Pachamuthu vs. M.M.Finance Corporation), he submitted that the statutory requirements of the notice are violated. The other grounds raised by the learned counsel for the petitioner is that the impugned cheques were given only as a security, which is evident from the memorandum of understanding between the petitioner-Company and the respondent / complainant. Clause 3 of the memorandum of understanding dated 15.6.2011 shows that the cheques were issued as a security for the return of amount borrowed by the 1st petitioner Company. In this connection, the learned counsel for the petitione....
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....or in allowing the petition under Section 482 Cr.P.C. and in quashing the complaint and setting aside the proceedings pending before the Judicial Magistrate" This proposition was further reiterated in a judgment of this Court in Crl.O.P.(MD) No.180 of 2010 dated 02.09.2016 (John George vs. Subramanian). The observation of the learned judge is as follows: "..... 3. A perusal of the complaint reveals that notice has been issued to the petitioner / 5th accused in C.C.No.73 of 2003, in the capacity, as the Managing Director, and for other Accused Nos.1 to 4, in the capacity as Directors. In C.C.No.73/2003, the company has been added as the 5th accused. ..... 5. ...... (iii) In N.Ranchachari v. Bharat Sanchar Nigam Ltd reported in (2001 (1....
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.... 5. With regard to the second ground raised by the petitioner that the cheques were issued by the petitioner as a security, the learned counsel relied upon the judgment reported in MANU/SC/1021/2016 (Sampelly Satyanarayana Rao vs. Indian Renewable Energy Development Agency Limited) and submitted that the cheques that had been issued as a security, when presented, would definitely attract Section 138 of the Negotiable Instruments Act. Relevant portion of the said judgment reads as follows: "..... 8. Clause 3.1 (iii) of the agreement may also be noted: 3.1 SECURITY OF THE LOAN The loan together with the interest, interest tax, liquidated damages, commitment fee, up front fee prima on repayment or on redemption, costs, expenses and o....