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Issues:
1. Quashing of proceedings in C.C. No. 290/2002 under section 482 of the Code of Criminal Procedure. 2. Conditions for liability under section 138 of the Negotiable Instruments Act. 3. Correctness of accused's name in the notice and complaint. 4. Validity of the complaint regarding the cheque issued by the accused on behalf of another company. Analysis: The petition before the High Court of Andhra Pradesh sought to quash the proceedings in C.C. No. 290/2002 under section 482 of the Code of Criminal Procedure. The case involved a dispute where the accused-company owed a sum of Rs. 6 lakhs to the complainant-company due to a dishonored cheque. The complainant followed the legal process by issuing a notice demanding payment, which the accused failed to comply with, leading to the complaint under section 138 of the Negotiable Instruments Act. Regarding the conditions for liability under section 138 of the Negotiable Instruments Act, the court highlighted three essential conditions that must be met for a person to be held liable. These conditions include presenting the cheque to the bank within the specified period, making a written demand for payment within 15 days of the cheque being returned unpaid, and the drawer failing to make the payment within the stipulated time. The court emphasized that the debt or liability must be legally enforceable for the section to apply. The issue of the correctness of the accused's name in the notice and complaint was raised by the petitioner's counsel, pointing out a discrepancy in the surname. However, the court deemed this a technical defect that could be rectified, emphasizing that the identity of the accused as the Managing Director was clear. The court clarified that any dispute about the accused's position could be addressed during the trial. Another contention raised was regarding the validity of the complaint concerning the cheque issued by the accused on behalf of another company. The court dismissed this argument, stating that the complaint adequately explained the circumstances under which the cheque was issued on behalf of a different entity due to insufficient funds in the account of the company with which the complainant had business transactions. The court found no legal impediment to prosecuting the accused for the dishonored cheque, leading to the dismissal of the petition to quash the proceedings. In conclusion, the High Court of Andhra Pradesh dismissed the petition, emphasizing that the allegations in the complaint provided sufficient grounds to proceed with the case under section 138 of the Negotiable Instruments Act. The court clarified that its observations were limited to deciding the petition and would not impact the trial proceedings.
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