TMI Blog2008 (12) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... te that the proceedings u/s 138 are pending. That being so, the question of proceeding for alleged breach of trust does not arise. It is interesting to note that the respondent does not dispute issuance of cheques. Even a casual reading of the complaint does not show that the ingredients of Section 406 IPC are in any event made out. It is also not understandable as to how Section 294 has any application to the facts of the case much less Section 506 IPC. In addition to this, perusal of the complaint apparently shows the ulterior motive. It is clear that the proceeding initiated by the respondent clearly amounted to abuse of the process of law. In State of Haryana v. Bhajan Lal [ 1992 (12) TMI 234 - SUPREME COURT] ; ''(7) Where a cri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en seven blank cheques drawn on Canara Bank, Main Branch Bhubaneswar in favour of accused-appellant No. 1 in the year. 1994 when the agreement had been executed between the parties with mutual understanding that the said cheques would not be presented for encashment by the accused-appellant, but then payments would be made through demand drafts regularly till the entire amount was repaid. According to the complainant, in consonance with the said understanding the entire dues were repaid by him through demand drafts and after repayment he wrote a letter to accused-appellant No. l for returning the blank cheques to him. However, without doing so, the accused appellants mischievously and with ulterior motive presented the cheques in the bank, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the guarantor for disbursal of the said loans to the customers for which the Respondent was given a margin of 3-4% to market the loan scheme. As per clause (e) of the said minutes of the meeting and as per clause (f) the respondent had to open a separate bank account and deposit all the post dated installment cheques received from the customers in the said account which was required to be remitted to the appellant Company on minimum balance basis in its Bombay account by way of Telegraphic Transfer and as per clause (g) the respondent was required to send reports and statements on monthly basis to the appellant company. As per clause (h) for any customer once defaults in payment reached a figure of 3, the respondent had to reimburse the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 89,000/- and the said payment has already been made by the Respondent by way of a Demand Draft of which no number, date or any other details are provided in the complaint. The appellants became aware of institution of such a case only later when the process was issued on 18.04.2001 and the same was received by the appellants. 10. On 02-08-2000 the appellants filed Case No. 753/S/2000 Under Section 138 of the Act read with Section 34 of IPC before ACMM, Esplanade, Bombay. 11. The respondent in the meanwhile kept on representing that he will clear the payments and vide letter dated 8-11-2000 made an offer to the appellants to agree for the full and final settlement of the outstanding dues for a mere sum of 25,00,000/- against a balance of 2,3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ows: 108. In the backdrop of the interpretation of the various relevant provisions of the Code under Chapter XIV and of the principles of law enunciated by this Court in a series of decisions relating to the exercise of the extraordinary power under Article 226 or the inherent powers under Section 482 of the Code which we have extracted and reproduced above, we give the following categories of cases by way of illustration wherein such power could be exercised either to prevent abuse of the process of any court or otherwise to secure the ends of justice, though it may not be possible to lay down any precise, clearly defined and sufficiently channelised and inflexible guidelines or rigid formulae and to give an exhaustive list of myriad kinds ..... X X X X Extracts X X X X X X X X Extracts X X X X
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