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Issues:
Quashing of criminal complaints under section 482, Code of Criminal Procedure and sections 138 and 142 of the Negotiable Instruments Act based on non-compliance with legal requirements. Analysis: The petitioners filed petitions under section 482, CrPC to quash criminal complaints against them under sections 138 and 142 of the Negotiable Instruments Act. The complaints were lodged by a company engaged in finance, alleging that the accused issued cheques that were returned with "Refer to Drawer" endorsement. Legal notices were sent under section 138, but the accused refused them, leading to the filing of complaints. Cognizance was taken by the Magistrate, and the accused sought quashing of the summons. The counsel for petitioners argued that the complaints did not comply with section 141 of the Negotiable Instruments Act, which holds company officials responsible for offenses. The complainant's averments regarding the liability of all directors were challenged. Citing precedents like Secunderabad Health Care v. Secunderabad Hospitals, it was contended that specific averments about the role of each director are necessary for prosecution under section 138. The Karnataka High Court ruling in Nucor Wires Ltd. v. HMT (International) Ltd. was also referenced to support this argument. The complaints identified the accused as a firm, CMD and Signatory, Director and Authorised Signatory, Director, and Finance Controller. The court held that the firm and specific individuals like the CMD, Director, and Finance Controller could be prosecuted under section 138 based on their roles. However, the Director without a defined role (A-4) was not liable for prosecution. Consequently, the court quashed the complaints against A-4 but allowed the trial to proceed against the other accused. In conclusion, the court partially allowed the criminal petitions, quashing the complaints against one accused while directing the trial to continue against the remaining accused based on their roles and liability under section 138 of the Negotiable Instruments Act.
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