Pankaj JaIn Vs. Gyanendrapal Singh - Court Judgment

Excerpt:
- o.p. jain, j.1. this is an application under section 482 of the criminal procedure code, 1973, for quashing the proceedings in criminal case no. 456 of 1990 under section 138 of the negotiable instruments act, 1881 (hereinafter called 'the act').2. the brief facts of the case leading to the application are that the accused, pankaj jain, is the managing director and the accused, sanjai jain, is the executive director of jain food products (p) ltd. the complainant, gyanendrapal singh, is the partner of rajpoot enterprises. on december 2, 1989, the accused, sanjai jain, gave five cheques for a total amount of rs. 1,60,000 to the complainant. these cheques were presented on december 16, 1989, for payment but payment was refused with the remark 'exceeded arrangement'. the complainant contacted the accused who assured the complainant that payment will be made by the bank on december 20, 1989. the cheques were again presented on december 21, 1989, but the payment was refused with the same remark. on december 22, 1989, and december 25, 1989, the complainant issued notice to the accused by registered post but no payment was received and, therefore, the complaint, annexure '2', was filed by opposite party, gyanendrapal singh, on january 15, 1990.3. the present application under section 482 of the criminal procedure code, 1973, has been filed by pankaj jain mainly on the ground that the cheques were signed by sanjai jain and, therefore, pankaj jain was not liable under section 138 of the act.4. section 141 of the act says that where the offence has been committed by a company every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.5. in the first paragraph of the complaint, annexure '2', it is specifically alleged that the accused, pankaj jain and sanjai jain, are in charge of and are authorised and are liable for the business of the company. in paragraph 2 of the application, under section 482 of the criminal procedure code, 1973, it is admitted by the applicant, pankaj jain, that he along with his brother established the firm known as 'jain food products private limited'. in this way it is not the case of the applicant that he has no concern with jain food products private limited.6. a perusal of the order dated may 1, 1992, passed by this court shows that the application under section 482 of the criminal procedure code, 1973, was admitted mainly on the ground that the cheques were signed by sanjai jain and not by pankaj jain. the legal position, which has been stated above, makes the applicant prima facie liable for the issue and dishonour of the cheques.7. therefore, there is no force in this application under section 482 of the criminal procedure code, 1973, which is liable to be dismissed. it may, however, be added that any observations made above will not prejudice the court below in any way and the liability of pankaj jain will be decided on the basis of the evidence produced before the trial court.8. with these observations the application under section 482 of the criminal procedure code, 1973, is dismissed.