Case: M/S. Cranex Limited  Vs. M/S. Nagarjuna Finance Limited

M. Jagannadha Rao, J. Leave granted. 2. The case involves a settlement of the money claim during the pendency of a criminal appeal arising out of proceedings under Section 138 of the Negotiable Instruments Act. The main appeal, namely, Criminal Appeal No. 59/99, against the conviction is pending before the VIth Additional Metropolitan Sessions Judge, Secunderabad in the matter arising under Section 138 of the Negotiable Instruments Act. That is an appeal against the order dated 8.2.1999 of the XVth Metropolitan Magistrate, Hyderabad, sentencing the appellant No. 2, representing the firm, to undergo rigorous imprisonment for 6 months and further to pay a fine of Rs. 10,000/- or in default, to undergo simple imprisonment for a further period of 3 months. There is also a direction against the 2nd appellant representing the 1st appellant-Company, to pay a fine of Rs. 10,000/- or in default to undergo simple imprisonment for 3 months. The appeal against the conviction and sentence is pending as aforesaid, before the VIth Additional Metropolitan Sessions Judge, Secunderabad. 3. At that stage, it appears that some interlocutory applications were filed by the appellants in the appellate Court and the said applications were dismissed. Against the said order, a revision case No. 91/2000 was filed in the High Court and it was also dismissed. This appeal has been preferred against the said order passed by the High Court in the interlocutory proceedings. 4. During the pendency of the case, there appears to be a settlement of the money-dispute between the parties. On 24.8.2000 this Court passed an order as follows : "Learned Counsel for the petitioners states that the petitioners would deposit the cheque amount (Rs. 5,96,688/-) which was dishonoured within three weeks from today before the XV Metropolitan Magistrate, Hyderabad. In this view of the matter, stand over for three weeks. Application for substituting the name of Mr. S.C. Agrawal as Managing Director of the petitioner No. 1s firm in place of Mr. Piyus Agrawal, Managing Director is allowed." It appears, subsequent to the said order, the appellant has deposited a sum of Rs. 5,96,688/- in the Court of the XV Metropolitan Magistrate, Hyderabad. A certificate to that effect issued by the said Court has been filed by the counsel for the petitioners, in this court. 5. In the light of the subsequent developments in the case, we are of the view that the order passed in the Interlocutory application be set aside and the mater be remitted to the Appellate Court where the appeal is pending. We order accordingly.

Decision reasoning: 1[ds]5. In the light of the subsequent developments in the case, we are of the view that the order passed in the Interlocutory application be set aside and the mater be remitted to the Appellate Court where the appeal is pending.