HON’BLE SRI JUSTICE SAMUDRALA GOVINDARAJULU CRIMINAL PETITION No.11031 of 2009 Date: September 30, 2010 Between: 1. Tamalampudi Ramakrishna Reddy and another. … Petitiioners and 1. Kovvuri Venkata Saraswathi Laxmi and another. … Respondents * * * HON’BLE SRI JUSTICE SAMUDRALA GOVINDARAJULU CRIMINAL PETITION No.11031 of 2009 ORDER: The petitioners 1 and 2/A-1 and A-2 are accused of offences punishable under Sections 406, 420, 384/34 IPC in C.C. No.450 of 2009 on the file of Judicial Magistrate of the First Class, Kothapet, East Godavari District. 2. A-2 is manager of Sri Rama Traders floated by A-1 with others. It is alleged that even though A-1 was a partner in Sri Konaseema Steels, A-1, without informing other partners, had floated Sri Rama Traders. There is no prohibition under law for any person joining as partner in any number of partnerships or floating any number of business firms. During the course of business, there was memorandum of understanding entered into between Sri Konaseema Steels and Sri Rama Traders with regard to advancing Rs.50.00 lakhs and giving royalty in the business. It is alleged that A-2, as manager of Sri Rama Traders, pleaded with Sri Konaseema Steels and made them to enter into memorandum of understanding (MoU) to the above effect. It is alleged that for due performance of terms of MoU, A-1 obtained certain blank signed cheques from the first respondent (de facto complainant), the then Managing Partner of Sri Konaseema Steels. It is alleged that subsequently A-1 retired from the partnership of Sri Konaseema Steels and that later Sri Konaseema Steels was sold away to one M. Mallikharjuna Rao for Rs.1.30 crores or so. 3. Main grievance of the first respondent is that in spite of A-1 retiring as partner of Sri Konaseema Steels and in spite of sale of Sri Konaseema Steels to an outsider, A-1 retained blank signed cheques of the first respondent and threatened the first respondent to file cheque bounce cases using the said blank signed cheques of the first respondent. It is stated that subsequently A-1 filed a case against the first respondent alleging offence punishable under Section 138 of the Negotiable Instruments Act and that it is pending. Thus, main grievance of the first respondent is against A-1 only who obtained blank signed cheques from the first respondent and who is stated to have misused the said blank signed cheques even after he retiring from Sri Konaseema Steels. 4. In so far as A-2 is concerned, there are no allegations in order to mulct him with any criminal liability, much less for the above offences, in respect of which the charge sheet was filed. He is stated to have persuaded the first respondent to enter into MoU on behalf of Sri Konaseema Steels with Sri Rama Traders on behalf of Sri Rama Traders. Except the said allegation, there is no other allegation of A-2 receiving any blank signed cheques of the first respondent and misusing those blank signed cheques or that A-2 obtained any wrongful gain for himself or caused wrongful loss to the first respondent. The role played by A-2 is nothing but as manager without he having any personal interest therein. Thus, this Court is of the opinion that taking allegations in the FIR and in the charge sheet on their face value, there are no ingredients/statutory facts against A-2 for the above offences. In so far as A-1 is concerned; this Court does not find any valid or legal reasons to grant any relief in this petition. 5. In the result, the petition is partly allowed quashing proceedings in C.C. No.450 of 2009 on the file of Judicial Magistrate of the First Class, Kothapeta in so far as the second petitioner/A-2 is concerned; and the petition is partly dismissed in so far as the first petitioner/A-1 is concerned. ___________________________________ SAMUDRALA GOVINDARAJULU, J Date: September 30, 2010. BSB