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TMI Blog2025 (1) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... tunity to adduce the relevant evidence. The Hon ble Apex Court, in the case of Rathish Babu Unnikrishnan v. State (NCT of Delhi) [ 2022 (4) TMI 1434 - SUPREME COURT] , adverting to a catena of judgments, had underscored the parameters for exercising inherent jurisdiction to quash the proceedings at the stage of the summoning order. In the present case, apart from raising an argument in relation to the cheques in dispute being given as security, the petitioners have sought to challenge the complaints essentially on the ground that the same are not maintainable by virtue of the same being filed in the old name of the complainant company - It is argued that even though the name of the complainant company was changed on 28.05.2018, however, the complaints were subsequently filed in the erstwhile name in June, 2018. In the case of MUNISH KUMAR GUPTA VERSUS M/S MITTAL TRADING COMPANY [ 2024 (4) TMI 1212 - SC ORDER] , the Hon ble Apex Court had set aside the order whereby the concerned High Court had permitted the complainant to amend the date in the complaint by observing that if such amendment was not permitted, the same will be fatal to the case of the complainant. In the said case, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n these cases: For the Petitioners : Mr. Aseem Mehrotra Ms. Deeksha Mehrotra, Advs. For the Respondent : Ms. Shivani Tayal Mr. Sumit Panwar, Advs. JUDGMENT 1. The present petitions are filed under Section 482 of the Code of Criminal Procedure, 1973 ( CrPC ) essentially seeking quashing of Criminal Complaint Nos. 10977/2018, 10966/2018, 10965/2018, 10967/2018 and 10963/2018 filed by the respondent against the petitioners for the offence under Section 138 of the Negotiable Instruments Act, 1881 ( NI Act ) read with Section 141 of the NI Act. 2. The petitioners have also challenged the respective summoning orders in the aforesaid complaints. 3. The brief facts of the cases are that Respondent No. 2 (the complainant company), which is a manufacturer and distributor of various brands of beer, had entered into a Distribution Agreement dated 01.04.2016 with Petitioner No. 1 (the accused firm) whereby Petitioner No. 1 was appointed as the exclusive distributor for Respondent No. 2 in Puducherry. It is alleged that a sum of Rs. 1,07,93,057.81/- was due to be paid by Petitioner No. 1 against purchase of beer. In furtherance of the same, multiple cheques were issued on behalf of Petitioner No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he payments were being made to the respondent through RTGS. 12. The learned counsel for the respondent submitted that the application for change in name of the complainant company had already been preferred by the respondent. 13. He submitted that it is not a case of merger or amalgamation and only the name of the complainant company had been changed. He submitted that there are no other legal impediments or consequences and the present petitions have been filed with the mere purpose of delaying the trial. 14. He submitted that Section 23 (3) of the Companies Act, 1956 clearly provides that the legal proceedings commenced by the company in its former name may be continued by its new name. He submitted that in the absence of any new provision to the contrary in Companies Act, 2013, the same rationale ought to apply in the present case as well. 15. He submitted that even otherwise, no prejudice would be caused by a mere change of name to the petitioners. ANALYSIS 16. At the outset, it is relevant to note that the inherent jurisdiction of the Court under Section 482 of the CrPC ought to be exercised sparingly especially when the matter is at the stage of issuance of summons as the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the prosecution or the complainant to adduce evidence to substantiate the same. 16. The proposition of law as set out above makes it abundantly clear that the Court should be slow to grant the relief of quashing a complaint at a pre-trial stage, when the factual controversy is in the realm of possibility particularly because of the legal presumption, as in this matter. What is also of note is that the factual defence without having to adduce any evidence need to be of an unimpeachable quality, so as to altogether disprove the allegations made in the complaint. 17. The consequences of scuttling the criminal process at a pre-trial stage can be grave and irreparable. Quashing proceedings at preliminary stages will result in finality without the parties having had an opportunity to adduce evidence and the consequence then is that the proper forum i.e., the trial Court is ousted from weighing the material evidence. If this is allowed, the accused may be given an un-merited advantage in the criminal process. Also because of the legal presumption, when the cheque and the signature are not disputed by the appellant, the balance of convenience at this stage is in favour of the complainant/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led under Section 200 of the CrPC was allowed and if the order by way of which the amendment was allowed suffered from any infirmities. The relied upon paragraph of the said judgment is reproduced hereunder: 20. In the instant case, the amendment application was filed on 24-5-2007 to carry out the amendment by adding Paras 11 (a) and 11 (b). Though, the proposed amendment was not a formal amendment, but a substantial one , the Magistrate allowed the amendment application mainly on the ground that no cognizance was taken of the complaint before the disposal of amendment application. Firstly, the Magistrate was yet to apply the judicial mind to the contents of the complaint and had not taken cognizance of the matter. Secondly, since summons was yet to be ordered to be issued to the accused, no prejudice would be caused to the accused. Thirdly , the amendment did not change the original nature of the complaint being one for defamation. Fourthly , the publication of poem Khalnayakaru being in the nature of subsequent event created a new cause of action in favour of the respondent which could have been prosecuted by the respondent by filing a separate complaint and therefore, to avoid m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s follows: (SCC pp. 659-60, para 6) 6. The learned Single Judge has focussed his attention only on the technical flaw in the complaint and has failed to comprehend that the flaw had occurred due to the recalcitrant attitude of Modi Distillery and furthermore the infirmity is one which could be easily removed by having the matter remitted to the Chief Judicial Magistrate with a direction to call upon the appellant to make the formal amendments to the averments contained in Para 2 of the complaint so as to make the controlling company of the industrial unit figure as the accused concerned in the complaint. All that has to be done is the making of a formal application for amendment by the appellant for leave to amend by substituting the name of Modi Industries Limited, the company owning the industrial unit, in place of Modi Distillery. Furthermore, the legal infirmity is of such a nature which could be easily cured. 19. What is discernible from U.P. Pollution Control Board case [(1987) 3 SCC 684 : 1987 SCC (Cri) 632] is that an easily curable legal infirmity could be cured by means of a formal application for amendment. If the amendment sought to be made relates to a simple infirmity ..... X X X X Extracts X X X X X X X X Extracts X X X X
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