THE HON’BLE SRI JUSTICE RAJA ELANGO CRIMINAL PETITION No.5767 of 2010 DATED 25th MARCH, 2011 BETWEEN: P.Bala Tripura Sundari 7 another ….. Petitioners-accused and The State of A.P. & another ….. Respondents THE HON’BLE SRI JUSTICE RAJA ELANGO CRIMINAL PETITION No.5767 of 2010 ORDER: Petitioners approach this Court with a prayer to quash the proceedings in C.C.No.1770 of 2009 on the file of the XIV Metropolitan Magistrate, Ranga Reddy District at L.B.Nagar. Heard. The main contention raised by the learned counsel for the petitioners is that the petitioners and the complainant entered into an agreement for sale. As per the terms of agreement, the petitioner herein issued a cheque for a sum of Rs.7 lakhs, which is not in dispute and the same was bounced, which is also not in dispute. He further submits that even as per the agreement there is a default clause that after 10.02.2010 the said agreement shall stand cancelled and the respondent is entitled for 10% of the advance money paid by the petitioner herein. Hence, the said cheque of Rs.7 lakhs cannot be construed as issued towards legally enforceable debt. This Court perused the entire material on record and also perused the copy of agreement of sale. A perusal of the agreement of sale clearly reveals that it is only an agreement for sale and it has not reached its finality and there are some default clauses that if there is any failure to pay the money, the parties can approach the Arbitrator to settle the issue and also another clause that 10% of the advance money can be forfeited to the complainant herein. Hence, this Court is of the view that the issuance of cheque in this matter cannot be termed as a cheque issued towards legally enforceable debt. As such, the provisions of Section 138 of Negotiable Instruments Act are not applicable to the present facts and circumstances of the case. Therefore, the present complaint is liable to be dismissed. Accordingly, the Criminal Petition is allowed and the proceedings in C.C.No.1770 of 2009 on the file of the XIV Metropolitan Magistrate, Ranga Reddy District at L.B.Nagar, are hereby quashed. If the respondent herein is aggrieved over the non-performance of the agreement, he is at liberty to approach the appropriate Forum for the said 10% of advance amount, if he so chooses. Miscellaneous petitions filed in this Criminal Petition, if any, shall stand closed. _________________________ JUSTICE RAJA ELANGO Date: 25.03.2011 sur