IN THE HIGH COURT OF KERALA AT ERNAKULAM
Crl.MC.No. 3345 of 2009()
1. B.SRIDHAR, S/O.BALAKRISHNAN,
... Petitioner
Vs
1. P.P.GANGADHARAN, S/O.RAMAN, DRIVER,
... Respondent
2. STATE OF KERALA,
For Petitioner :SRI.N.K.SUBRAMANIAN
For Respondent : No Appearance
The Hon'ble MR. Justice M.SASIDHARAN NAMBIAR
Dated :11/12/2009
O R D E R
M.SASIDHARAN NAMBIAR,J.
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CRL.M.C.No. 3345 OF 2009
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Dated this the 11th day of December,2009
ORDER
Petitioner is the fourth accused in S.T.1837/2008
on the file of Judicial First Class Magistrate Court-I,
Kannur taken cognizance for an offence under section
138 of Negotiable Instruments Act on Annexure A
complaint filed by the first respondent. This petition
is filed under section 482 of the Code of Criminal
Procedure contending that petitioner is implicated as
accused on the allegation that he is one of the
Directors of the Private Limited Company based on a
dishonoured cheque dated 15.6.2007 when petitioner
had ceased to be a Director of the Company, with
effect from 28.6.2006 and therefore petitioner cannot
be prosecuted for the offence committed by the Company,
after he ceased to be a Director and hence the case
is to be quashed. Petitioner also pointed out that in
Crl.M.C.1039/2009 and connected cases, this court has
already quashed similar proceedings initiated under
section 138 of Negotiable Instruments Act, finding that
the dishonoured cheques in those cases were also issued
subsequent to 28.6.2006.
Crl.M.C.3345/2009 2
2. Though notice was served on the first respondent
complainant before the trial court, he did not appear.
3. Learned counsel appearing for the petitioner was
heard.
4. As per Annexure E order in Crl.M.C.1039/2009 and
connected cases, this court has already found that
petitioner had resigned from the Director of the company
with effect from 28.6.2006. Therefore he is not liable or
responsible for the business of the Company subsequent to
28.6.2006. Annexure A complaint shows that the dishonoured
cheque in the case was issued on 15.6.2007. It was
allegedly issued towards discharge of the amount due under
the chitty account as on 11.6.2007. The cheque was
dishonoured on 14.9.2009 and notice under section 138(b)
of Negotiable Instruments Act demanding the amount was also
sent on 9.10.2007. In such circumstances, when the cheque
itself was issued after the petitioner ceased to be a
Director of the Company, he cannot be prosecuted for its
dishonour or failure to pay the amount when demanded.
The continuation of the proceedings, as against the
petitioner, in such circumstance, is only an abuse of
process of court.
Petition is allowed. C.C.1837/2008 on the file of
Judicial First Class Magistrate Court-I, Kannur is quashed.
M.SASIDHARAN NAMBIAR
JUDGE
Crl.M.C.3345/2009 3
tpl/-
M.SASIDHARAN NAMBIAR, J.
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W.P.(C).NO. /06
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JUDGMENT
SEPTEMBER,2006