2002 (5) TMI 887 - HC - Indian Laws

Summary

Issues:
Quashing of proceedings under Sections 82/83 Cr.P.C. in a complaint filed under Section 138 of NI Act read with Section 420 of IPC.

Analysis:
The petitioner, a company, sought the quashing of proceedings under Sections 82/83 Cr.P.C. in a complaint filed against them under Section 138 of the Negotiable Instruments Act (NI Act) read with Section 420 of the Indian Penal Code. The complaint alleged that a cheque issued by the petitioner was dishonored, and despite notice, payment was not made. The trial court had issued summons under Section 138 of the NI Act, which were returned unserved as the accused did not appear. Subsequently, fresh process under Sections 82/83 Cr.P.C. was issued against all accused persons. The petitioner contended that as a company, the concept of absconding did not apply, and the process of proclamation and attachment should not be issued as a matter of course when a warrant is returned unexecuted. The petitioner argued that the impugned order issuing proclamation against them was not sustainable as it did not conform to the provisions of Section 82(1) and (2), leading to a violation of the procedure established by law under Article 21 of the Constitution of India.

The Court considered the arguments presented by the petitioner and observed that the term "absconding" did not necessarily imply a change of place, and as a private limited company, the concept of absconding did not apply. The Court noted that while issuing process under Sections 82/83 Cr.P.C., the trial court did not even consider the report on the warrant. Consequently, the Court quashed the order initiating proceedings under Sections 82/83 Cr.P.C. against the petitioner, subject to certain conditions. The petitioner was directed to appear before the trial court within two weeks and deposit the cheque amount along with interest at the rate of 18% from the date of the cheque till the date of payment in the name of the complainant. Upon compliance, the Court would release the amount to the complainant or pass any other necessary orders. The Court emphasized that any observations made in the judgment would not affect the merits of the case, and directed the registry to segregate the trial court file and return it accordingly.