Madhur Gulati Vs State of U.P. and Another (Allahabad High Court)
The Allahabad High Court has disposed of a series of petitions filed by an individual, Madhur Gulati, challenging summoning orders issued in several cheque dishonor complaints. The court, without delving into the merits of the case, allowed the applicant to raise all legal and factual contentions before the lower court during the trial.
The cases stem from complaints filed by the second respondent, alleging that Madhur Gulati, a partner in the firm M/s Navyug Industries and a director of its successor company, Newgen Ecotronics Pvt. Ltd., had issued multiple cheques to discharge loan liabilities. These cheques, issued in 2023, were subsequently dishonored due to “insufficient funds.”
Case Details
The complaints, lodged under Section 138 of the Negotiable Instruments (NI) Act, 1881, and Section 142 of the NI Act, were based on the following allegations:
- Leading Application: The applicant issued two cheques totaling Rs. 9,65,000 to the complainant. These cheques were dishonored on October 21, 2023. A statutory demand notice was issued on October 30, 2023, and upon non-payment, a complaint was filed on November 20, 2023. The applicant was summoned on March 15, 2024.
- Connected-C1 Application: A cheque for Rs. 4,85,000 was issued by the applicant to settle a liability of the company. The cheque was dishonored on October 21, 2023. A complaint was filed on November 20, 2023, after a statutory notice, and the applicant was summoned on March 15, 2024.
- Connected-C2 Application: In his capacity as a guarantor or surety for the company, the applicant allegedly issued two cheques for Rs. 15,50,000 and Rs. 4,50,000, respectively. These cheques were also dishonored on October 21, 2023, leading to a complaint and a subsequent summoning order on March 15, 2024.
- Connected-C3 Application: As a guarantor, the applicant issued three more cheques for Rs. 11,00,000, Rs. 15,00,000, and Rs. 4,75,000. These were dishonored on October 21, 2023, and a complaint was filed on November 20, 2023. The applicant was summoned on January 20, 2025.
Arguments Presented
