TaxTMI 
TaxTMI 
2025 (3) TMI 185
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...."the NI Act") in STC No.940 of 2012. 2. The facts giving rise to this appeal may be summarized as under:- (a) The appellant herein, lodged a complaint for the offence under Section 138 of the NI Act, against the respondents herein, (original accused persons) which reads thus: "The Complainant is a Public Limited Company incorporated under the Companies Act, 1956 and is represented herein by its duly constituted attorney Mr. V. Venkatachalam. A duly attested copy of the Power of Attorney executed by the Company in favor of the said Attorney is annexed herewith and marked as Exhibit-I. The Address for service of all notices and processes on the complainant is that of its counsels M/s. S.P. Ravi P. Manimaran, M. Ramesh and T. Balakrishnan at No.57, Law Chambers High Court, Madurai. The address for service of all notices and processes on that of the accused is the same as stated above. 1. The Complainant Company is engaged in the business, inter alia, of manufacturing and marketing of Polyester Products such as Polyester Staple Fibre, Acrylic Staple Fibre, Recron 3s,PolyesterFilament Yarn, Polyester Filament Yarn, Polyester Texturised Yarn, Polyester Twisted Yar....
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....g with the interest thereon. The total amount due and payable by the Accused to the Complainant till 30 July 2010 was thus mutually calculated and confirmed as Rs.2,73,29,776.61 by the Accused and accordingly, by an Undertaking dated 28th July 2010, the Accused have undertaken in writing to pay to the Complainant Rs.10 Lacs on the date of release of the second charge and Rs.2,63,29. 776.61 on demand. The undertaking dated 28 July 2010, executed by the Accused in favour of the Complainant is annexed hereto and marked as Exhibit-4. 8. Later on, the Accused herein have paid a sum of Rs.10 Lacs to the Complainant and to ensure payment of the remaining amount, they have issued a Promissory Note for the amount of Rs.2,63,29.776.61 to the Complainant. Thus, the Complainant Company has released its second charge on the said property. The Promissory Note dated 30 July,2010, issued by the Accused in the name of the Complainant is annexed hereto and marked as Exhibit-5. 9. The Complainant submits that in order to discharge the aforesaid legally enforceable liability of 2,63,29. 776.61, the Accused have issued to the Complainant a Cheque bearing No.272076 dated 30 July 2010 for Rs.2,6....
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....under Section 138 of the Negotiable Instruments Act,1881 and they are liable to be prosecuted under Section 138 read with 141 of the Negotiable Instruments Act, 1881. 15. The complainant reiterates that the statutory notice was served on the Accused on 9 December 2010 and this complaint is filed within the stipulated time. 16. The acts of the Accused have caused great financial loss, set back in the business and mental agony to the Complainant. The complainant is unable to meet its liabilities because of the illegal acts committed by the Accused. Therefore, the complainant ought to be compensated suitably. 17. The cause of action for presenting the complaint arose on and from 25 December 2010 since, the Accused failed to pay to the Complainant the amount covered by the dishonored cheque as demanded under the statutory notice as stated above. 18. It is submitted that the drawee bank of the said cheque i.e. the Federal Bank Limited, East Veli Street branch, Madurai, situates within the territorial jurisdiction of this Hon'ble Court and thus this Hon'ble Court has jurisdiction to entertain this complaint and take cognizance of the offence. ....
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....discharge the aforesaid liability, you have issued to my clients a Cheque bearing No. 272076 dated 30 July 2010 for Rs. 2,63,29, 776.61 (Rupees Two Crores Sixty Three Lacs Twenty Nine Thousand Seven Hundred and Seventy Six and Sixty one paisa only) drawing on the Federal bank Limited, Madurai branch ("the said cheque"). 6. My clients presented the said cheque for payment to your bank, through my clients' bank, Axis Bank Limited, Madurai. However, the said cheque has been dishonoured by your bank due to insufficiency of funds in your bank account and was returned along with a dishonor memo dated 16 November 2010. 7. My clients state that you all have been actively involved in all aforesaid transactions with my clients and the said cheque was issued with the consent and connivance of all of you. 8. In the circumstances, my clients have instructed me to call up on you to demand payment of Rs.2,63,29,776.61 (Rupees Two Crores Sixty Three Lacs Twenty Nine Thousand Seven Hundred and Seventy Six and Sixty one paisa only) being the amount covered by the said cheque, within fifteen (15) days from the receipt hereof by you, which I hereby do, and give you this ....
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....bordinate Judge of Madurai in IP No. 21 of 2008 in order to declare the Sri Mappillai Vinayagar group to declare as insolvent and collect the pending amount from them. 10. My client states that the amount which has been presented to ~ the bank is not done with the consent of my client. It has been presented by your client in order to satisfy your losses which your client had been faced in south of Tamilnadu in dealing with polyster fibre products. 11. My client states that the charge which had been created on by clients property* is only for the purpose of security and the said security was discharged by your client once my client had settled the dues pending to your client. When my client asked the original agreement and Blank cheque issued at the time of entering agreement, your clients authorized authorities said that, the documents are held up at records Section the same will be sent through you by the post. 12. My clients state that your client now had using the said cheque leaves to collect the debts which has been created by Sri Mappillai Vinayagar Industries and trying to shift the burden fully on me for the payments due to RIL. 13. My cl....