2021 (10) TMI 758

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....the brother of the present petitioner, in his capacity, as a Director of V.N.K. Textiles and Paper Mills Limited, had issued a cheque for Rs. 33,19,607/- to the respondent herein. That cheque had been dishonoured, when presented for payment. The respondent had filed C.C. No. 686 of 2012, which is pending before the learned Judicial Magistrate No. II, Pollachi against V.N.K. Textiles and Paper Mills Limited, represented by the brother of the petitioner herein, since he is a Director of the company. 3. It had been contended in the complaint, which is now pending as C.C. No. 14 of 2015 before the learned District Munsif-cum-Judicial Magistrate at Mettupalayam, that the petitioner herein, towards part discharge of the loan amount of her brothe....

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....ng issuance of a cheque for Rs. 10,00,000/- by the petitioner to the respondent, either by the petitioner in her personal capacity or the said college, as an institution. The college has also not been shown as an accused. It is, therefore, contended that the entire proceedings is mala fide and should be quashed. 8. It is the contention of Mr. Rajendra Prasad, learned Counsel for the respondent, on the other hand, that substantial monies are due and payable to the respondent and as part settlement towards such dues, the petitioner had issued the cheque, which had been dishonoured when presented for payment. 9. Section 138 of Negotiable Instruments Act is as follows:- "Dishonour of cheque for insufficiency, etc., of funds in the account -....

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....person for the discharge of any debt or liability. This would, naturally, indicates that the person who draws the cheque and issues the cheque must have an existing debt or liability as against the person in whose favour the cheque is issued. 11. In the instant case, the petitioner had not issued the cheque from an account in her name. She had issued the cheque from the account in the name of V.N. Krishnaswamy Naidu College of Arts and Science for Women, Mettupalayam. That institution has not been made as a party. The constitution of said institution is not known, but, still the cheque had been instituted by the petitioner in her capacity as Correspondent/Secretary of that institution. She had not issued the cheque in her personal capacity....

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....the part of the respondent. The complaint had been lodged by naming the petitioner as accused in her personal capacity, when she had not issued any cheque in her personal capacity. It is an arm twisting move to ensure that the amount mentioned in the cheque issued by V.N.K. Textiles and Paper Mills Limited is repaid to the respondent. 17. I hold that the complaint does not withstand judicial scrutiny viewed from any angle. The respondent can pursue his complaint against V.N.K. Textiles and Paper Mills Limited in manner known to law. But, the complaint alleged against the present petitioner will necessarily have to be interfered and quashed for the simple reason that the petitioner had not issued the cheque from her bank account for any loa....