IN THE HIGH COURT OF KERALA AT ERNAKULAM
Crl.MC.No. 2523 of 2005()
1. USHA M.P.,
... Petitioner
Vs
1. INTEGRATED FINANCE PVT.LTD.,
... Respondent
2. STATE OF KERALA,
For Petitioner :SRI.K.R.SUNIL
For Respondent :SRI.T.S.RAJAN
The Hon'ble MRS. Justice M.C.HARI RANI
Dated :11/12/2008
O R D E R
M.C. HARI RANI, J.
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CRL.M.C.NO. 2523 of 2005
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Dated this the 11th day of December 2008
ORDER
The petitioner is the accused in C.C.No.2393 of 2003 on
the file of the Additional Chief Judicial Magistrate Court,
Ernakulam registered on the basis of the complaint filed by the
first respondent complaining of commission by her of an offence
punishable under Section 138 of the Negotiable Instruments Act.
Annexure-A1 is the complaint so filed by the first respondent.
The cheques are stated to be those issued in advance for
payment of the monthly instalments due under the Hire Purchase
Agreement availed of by the petitioner. The cheques which are
complained of as having been dishonoured which furnishes cause
of action for the first respondent are stated in Annexure-A1
complaint to be those dated 5-6-2003,5-7-2003 and 5-8-2003.
It is admitted by counsel for the first respondent that the vehicle
which was subject matter of the Hire Purchase Agreement was
repossessed on 25-2-2003. After repossession of the vehicle, the
CRMC.2523/2005 -2-
Hire Purchase Agreement executed on 21-11-2001 stands
cancelled and the remedy available to the first respondent is to
sell the vehicle and to move for realisation of any further
amount due from the petitioner by instituting a civil suit after set
off all amounts that has been realised. On the basis of cheques
entrusted with the first respondent with dates that fall
subsequent to the seizure of the vehicle, the first respondent
cannot continue to present cheques issued for discharge of the
future instalments after repossession of the vehicle on 25-2-2003
and file complaints under Section 138 of the Negotiable
Instruments Act on dishonour of such cheques. Such dishonour
will not constitute any offence under Section 138 of the
Negotiable Instruments Act as the consideration has failed. After
repossession of the vehicle the first respondent is not entitled to
file a complaint on the basis of cheque issued in advance in
discharge of instalments due towards hire purchase amount for a
subsequent period.
In the result, allowing this Crl.M.C., I quash the proceedings
in Annexure-A1 complaint as against the petitioner which is
CRMC.2523/2005 -3-
pending as C.C.No.2393 of 2003 on the file of the Additional
Chief Judicial Magistrate’s Court, Ernakulam.
M.C. HARI RANI
JUDGE
ks.