THE HONOURABLE SRI JUSTICE SAMUDRALA GOVINDARAJULU CRIMINAL PETITION No.6125 of 2009 Dated: 07.03.2011 Between: Matta Basava Nagarjuna Rao & another …..Petitioners And The State of A.P., rep. by its Public Prosecutor, High Court of A.P., Hyderabad & another …..Respondents THE COURT MADE THE FOLLOWING: THE HONOURABLE SRI JUSTICE SAMUDRALA GOVINDARAJULU CRIMINAL PETITION No.6125 of 2009 ORDER: The petitioners/A-2 and A-3 are accused offences punishable under Sections 420, 406 and 34 I.P.C. in C.C.No.152 of 2009 on the file of VI Additional Judicial Magistrate of the First Class, Rajahmundry along with another. It is alleged that A-1 and 2nd respondent/complainant conducted prawn business jointly for some time at Machilipatnam and became separated in their business and that since the complainant has close acquaintance and close relationship with A-1, A-1 stood as guarantor for the loan obtained by the complainant from S.B.H., Bhimavaram branch by depositing title deeds of A-1. It is the complainant’s case that at that time, A-1 insisted the complainant to give blank signed cheques to him as security and assured to return those cheques after clearance of the loan amount to the bank and that therefore, the complainant had given two blank signed cheques to A-1 and that subsequently, A-1, in collusion with A-2 and A-3, made over those cheques to A-2 and A-3, who are father and son and that A-2 and A-3 filed two cases against the complainant in C.C.Nos.184 of 2007 and 196 of 2007 alleging offences under Section 138 of the Negotiable Instruments Act, 1881 (for short, the Act) on the file of Judicial Magistrate of the First Class, Bantumilli, Krishna District. The present complaint in the lower Court was filed by the 2nd respondent on 27.4.2009, nearly two years after A-2 and A-3 filing prosecutions against him for the offence under Section 138 of the Act. Prior to filing of C.C.Nos.184 of 2007 and 196 of 2007, A-2 and A-3 sent two statutory notices, dated 24.10.2007, to the 2nd respondent informing him about dishonour of the cheques and calling upon him to pay the amount of Rs.5,00,000/- each covered by those two cheques. After receiving those notices, the 2nd respondent got issued reply notices, dated 1.11.2007 to A-2 and A-3 respectively. In the said reply notices, dated 1.11.2007, the 2nd respondent did not put up the present contention contained in C.C.No.152 of 2009 in the lower Court. In those reply notices, the 2nd respondent denied his knowledge of A–2 and A-3 and the transactions pleaded by A-2 and A-3 in relation to the dishonoured cheques. Nearly two years thereafter, the complainant has come up with the present complaint in the lower Court making belated allegations. It is evident that the present complaint in the lower Court is instituted against A-2 and A-3 at Rajahmundry as an arm-twisting measure for entering into compromise in C.C.No.184 of 2007 and 196 of 2007. Further, in order to attract Penal provisions under Section 420 and 406 I.P.C., dishonest intention to deceive the 2nd respondent, must be alleged at the inception of the transaction. There is no allegation that A-1 had any dishonest intention at the inception when the 2nd respondent handed over two blank signed cheques to him. In any event, there was no privity between the petitioners/A-2 and A-3 on one hand and the 2nd respondent on the other hand. It is only A-1, who is stated to have obtained the blank signed cheques from the 2nd respondent and not A-2 or A-3. In so far as C.C.Nos.184 of 2007 and 196 of 2007 are concerned, they will be decided by the Bantumilli Court, having regard to the evidence to be let in those cases. Neither A-2 nor A-3 practised any deception on the 2nd respondent much less had any dishonest intention against the 2nd respondent, when he is said to have delivered two blank signed cheques to A-1. Therefore, by any stretch of imagination, the prosecution in the lower Court cannot be allowed to go on in so far as the petitioners/A-2 and A-3 are concerned. In the result, criminal petition is allowed, quashing the proceedings in C.C.No.152 of 2009 on the file of VI Additional Judicial Magistrate of the First Class, Rajahmundry in so far as the petitioners 1 and 2/A-2 and A-3 are concerned. _____________________________________ JUSTICE SAMUDRALA GOVINDARAJULU 07.03.2011 TJMR THE HONOURABLE SRI JUSTICE SAMUDRALA GOVINDARAJULU CRIMINAL PETITION No.6125 of 2009 DATE: 07.03.2011