Srinagar, July 13: High Court today quashed the complaint and also the cognizance taken by the trial court against the accused in cheque bounce case as the company of the accused was not made party in the complaint.
A complaint under Section 138 of the Negotiable Instrument Act was filed by one Faiz-ul-Rehman against Ajaz Yousuf one of the Directors of the company Uzair Constructions Pvt Ltd.
Aggrieved of the complaint and the cognizance taken by the trial court the petitioner-Yousuf submitted before the court that the cheques issued were in the capacity as one of the Directors of the company and not in his individual capacity and the complainant-Rehman did not institute the complaint against the company.
Accused-Yousuf had issued three cheques in favour of complainant-Rehman in order to discharge liability accrued as rent of the machinery hired by him. When these cheques were presented before J&K Bank branch Ramban, the same were returned unpaid with the endorsement that the ‘payment stopped by drawer’.
He before the court also pleaded that the complainant has failed to issue notice or institute the complaint against the company as such he could not be prosecuted, without making company also party in the complaint for cheque bounce.
Justice Sindhu Sharma after hearing the counsel for the parties through virtual mode and keeping in view of law and facts of the case said the complainant has failed to arraign the company as an accused in the complaint quashed the complaint and cognizance of trial court.
“…the proceedings in the complaint as well as cognizance taken under section 138 of N I Act by the Chief Judicial Magistrate Ramban are hereby quashed”, Justice Sharma directed.
Court quashed the proceedings pending before CJM Ramban on the lines of Supreme Court which held that ‘In absence of the Company being arraigned as an accused, a complainant against the appellant-accused was therefore not maintainable”, Court referred.