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Calcutta Sanitary Wares v. Jacob
Structured Summary of the Provided Opinion
Factual and Procedural Background
These petitions under Section 482 of the Code of Criminal Procedure sought quashing of complaints and related proceedings in C.C. No. 22 of 1990 and C.C. No. 23 of 1990 pending before the Additional Chief Judicial Magistrate's Court, Ernakulam. The complaints were instituted under Section 138 of Act 66 of 1988 in respect of two cheques issued by the second petitioner, acting as partner of the first petitioner (a firm), in favour of the respondent. The cheques were dishonoured on presentation. Statutorily required demand notices were issued to the petitioners. The second petitioner sent a reply but no payment followed. Consequently, the respondent lodged the complaints as contemplated by the statute.
Legal Issues Presented
- Whether the complaints and related criminal proceedings in C.C. No. 22/1990 and C.C. No. 23/1990 should be quashed under Section 482 Cr.P.C.
- Whether the alleged countermanding of payment by a "stop memo" affects the respondent's right to initiate proceedings under Section 138 of Act 66 of 1988.
Arguments of the Parties
Petitioners' Arguments
- The petitioners sought quashing of the complaints and related proceedings under Section 482 Cr.P.C.
- It is indicated in the opinion that the petitioners relied, at least in part, on the fact that payment had been countermanded by a "stop memo" (i.e., that the payment was stopped) to resist the respondent's proceedings.
Respondent's Position
- The respondent complied with the statutory prerequisites before filing the complaints (demand notices, etc.).
- The respondent's position, as reflected in the opinion, is that an amount was due and that the statutory process for initiating complaints under Section 138 had been followed.
Table of Precedents Cited
No precedents were cited in the provided opinion.
Court's Reasoning and Analysis
The court applied a concise, stepwise analysis based on the material facts before it:
- Prima facie sufficiency: The court found that the allegations in the complaints did make out a prima facie case against the petitioners. This conclusion was based on the sequence of events set out in the record — issuance of cheques, dishonour on presentation, service of statutory notices, and failure to make payment despite a reply from the second petitioner.
- Compliance with statutory preconditions: The court observed that the respondent had taken care to comply with the relevant legal provisions required before launching complaints under Section 138. That compliance weighed against interference at the quashing stage.
- Effect of a stop memo: The court addressed the contention concerning a countermanded payment (a "stop memo"). It held that such a step is immaterial to the respondent's statutory right to initiate proceedings. The court analogised the practical effect of a stop memo to a closure of the account "as far as he [the respondent] is concerned," concluding that the statutory object would be frustrated if such an action could defeat a complaint.
- Scope of interference under Section 482: Given the existence of a prima facie case and the respondent's adherence to procedural prerequisites, the court held that it could not, at this interlocutory stage, exercise its extraordinary jurisdiction under Section 482 to quash the complaints.
Holding and Implications
Final Ruling: The petitions to quash were dismissed. The opinion records the operative conclusion as: "This court cannot interfere at this stage. Cil. M.Cs are dismissed."
Implications:
- The direct consequence for the parties is that the criminal complaints under Section 138 of Act 66 of 1988 in C.C. No. 22/1990 and C.C. No. 23/1990 will proceed; the quashing application failed and does not halt the trial proceedings.
- The court explicitly treated the existence of a "stop memo" as not defeating the respondent's statutory remedy; therefore, such a countermand does not, in this opinion, bar initiation of proceedings under Section 138.
- The opinion does not indicate the setting of any new legal precedent; it resolves the matter on the specific facts and procedural posture and declines to exercise extraordinary writ jurisdiction at the interlocutory stage.
This summary is derived exclusively from the text of the provided opinion. No information has been added or inferred beyond what appears in that opinion.
1. These Petitions filed under S. 482 Cr. P.C are to quash the complaints and related proceedings in C.C No. 22 of 1990 and C.C No. 23 of 1990 pending against the petitioners before the Additional Chief Judicial Magistrate's Court, Ernakulam. The complaints were filed under S. 138 of Act 66 of 1988 in respect of two cheques which the 2nd petitioner had issued as partner of the 1st petitioner, firm, in favour of the respondent. The cheques were dishonoured upon presentation. As required notices were issued to the petitioners. A reply was sent by the 2nd petitioner but payment was not made. Complaints were, therefore, laid as warranted by the provisions of the above Act.
2. The allegations in the complaints in my view do make out a prima facie case against the petitioners. Before filing the complaints respondent had taken care to abide by the relevant legal provisions. Indeed, it is not the case of the petitioner that no amount is due to the respondent.
3. The issuance of cheques and their dishonour followed by notices of demand and failure to pay, are not matters which had been challenged. That payment was countermanded by a stop memo is of no consequence. That hardly affects the right of the respondent to initiate proceedings under the Act. It has the same effect as a closure of the account as far as he is concerned. The object of the provision cannot be allowed to be defeated by such ingenuous action.
4. I think, the prayer to quash the complaints and related proceedings, is misconceived. Prima facie, there is case against the petitioners as alleged. This court cannot interfere at this stage. Cil. M.Cs are dismissed.
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