THE HONOURABLE SRI JUSTICE SAMUDRALA GOVINDARA CRIMINAL PETITION No.7131 of 2009 ORDER: The petitioner/A2 is accused of offence punishable under Section 138 of the Negotiable Instruments Act. The dishonoured cheque was drawn by A3 as Managing Director of Kumar’s Cotex Limited, Secunderabad. A2 is Chairman of Kumar’s Cotex Limited. A4 and A5 are Directors of Kumar’s Cotex Limited. It is contended by the petitioner’s counsel that there was no debt or liability vowed by Kumar’s Cotex Limited to the complainant/1st respondent namely Dr.Reddy Laboratories Limited, Hyderabad, as the alleged liability in respect of which the cheque was issued was by Stilbene Chemicals Limited. Even as per the allegations in the complaint, the dishonoured cheque was drawn on account of Kumar’s Cotex Limited, in pursuance of Memorandum of Understanding dated 10.12.2002. Even though the debt or other liability was not owed by Kumar’s Cotex Limited, the cheque was drawn towards debt or other liability owed by Stilbene Chemicals Limited. Therefore, it cannot be said that the dishonoured cheque was not drawn towards discharge of any debt or other liability. 2. It is contended by the petitioner’s counsel that A2 as Chairman of Kumar’s Cotex Limited, has nothing to do with day to day administration or business of the company and that as Chairman, he only presides over meetings of the Board of Directors of the company. In this petition filed under Section 482 Cr.P.C., the enquiry is limited to the question whether there are necessary allegations required to be contained in the complaint as per Section 141 of the Negotiable Instruments Act, as laid down in S.M.S. PHARMACEUTICALS LTD. Vs. NEETA BHALLA[1] of the supreme Court. It is specifically stated in Para Nos.3 and 11 of the complaint herein that A2 to A5 as Chairman, Managing Director and Directors of the company, are in charge of and responsible for day to day affairs and business of A1 company and as such, are liable to be prosecuted. In that view of the matter, it cannot be said that the proceedings in the lower Court under Section 138 of the Negotiable Instruments Act are liable to be quashed. 3. In the result, the Criminal Petition is dismissed. ______________________________ JUSTICE SAMUDRALA GOVINDARAJULU Dt:09.12.2011 ysk THE HON’BLE SRI JUSTICE SAMUDRALA GOVINDARAJULU CRIMINAL PETITION No.7131 of 2009 Dt:09.12.2011 ysk [1] (2005) 8 Supreme Court Cases 89