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Issues:
1. Jurisdiction of the court to try the case. 2. Allegations against individual petitioner. 3. Interpretation of Sections 138, 142, and 141 of the Negotiable Instruments Act. Analysis: Issue 1: Jurisdiction of the court to try the case The petitioner-firm challenged the territorial jurisdiction of the court at Ambala to try the case, arguing that the cheques were issued and dishonored at Chandigarh where they conduct their business. However, the court held that the offense was complete when the petitioners failed to pay the amount due to the respondent-firm, which is based in Panchkula. Therefore, the court at Ambala had jurisdiction to try the case. Issue 2: Allegations against individual petitioner Regarding the individual petitioner, Jagpal Singh, the court analyzed Section 141 of the Act, which holds individuals responsible for offenses committed by a company. The court found that the complaint did not make a case against Jagpal Singh as it failed to allege that he was in charge of the company's affairs or responsible for its conduct. Consequently, the court quashed the complaint and proceedings against Jagpal Singh. Issue 3: Interpretation of Sections 138, 142, and 141 of the Negotiable Instruments Act The court provided a detailed analysis of Sections 138, 142, and 141 of the Act to determine the liability of the petitioners. It explained that the offense under Section 138 is deemed complete only when the drawer fails to make payment within the prescribed period after receiving notice of dishonor. The court also clarified the liability of individuals in cases involving companies, citing relevant judgments to support its interpretation. In conclusion, the court dismissed the criminal miscellaneous petition against the petitioner-firm and Baljinder Singh but allowed it in favor of Jagpal Singh, quashing the complaint and subsequent proceedings against him. The judgment provided a thorough analysis of the legal provisions and factual circumstances to arrive at its decision.
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