Bangalore District Court
Ramcides Crop Science Pvt Ltd vs Sri. Mallikarjun Agro Traders on 1 August, 2025
KABC030042522024
IN THE COURT OF XXXVIII ADDL. CHIEF JUDICIAL
MAGISTRATE, BENGALURU
~:PRESENT:~
SRI. VEERESH KUMAR C.K. B.A.L, LL.M, CC [Cyber Laws]
XXXVIII ADDL. CHIEF JUDICIAL MAGISTRATE
BENGALURU
C.C. No.2224/2024
Date Of Judgment: 1st day of August, 2025
Ramcides Crop Science Pvt. Ltd.
formerly known as SDS Ramcides Crop
Science Pvt. Ltd.
having registered office at Ramcides House
Plot No.59 C, 8th Street,
North Phase,SIDCO Industrial Estate,
Amabattur, Chennai
Branch Office at:
No.71/1, I Floor, New Timber Yard Layout
Mysore Road, near Satellite Bus stand
Bengaluru-560 026
Rep. By its authorized Representative
Sri.Muttanagowda S/o.Shekargowda, 39 yrs. ....Complainant
(By Sri.Jobee Paul, Advocate)
----//VERSUS//----
Sri Mallikarjun Agro Traders
Rep. By its Proprietor
Shri Dharamesha
No.7-73, Wadegara Shahpura Taluk
Yadgir District-585 223 ....Accused
(by Sri.Ajjappa.S.D, Advocate)
KABC030042522024 Judgment CC No.2224/2024
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:: J U D G M E N T ::
T his case emanates from a private complaint filed by the complainant alleging that the accused has committed the offence punishable under section 138 of the Negotiable Instruments Act, 1881, by issuing a cheque for the amount of Rs.6,06,849/-, and the same were dishonored.
2 . THE ESSENTIAL FACTS;
It is the case of the complainant that the complainant is private limited company having registered under the Companies Act. It is involved in manufacturing of crop protection and crop health segments facilities across different places. The complainant company is represented by its authorized representative empowered by way of board resolution. The accused is the dealer/distributor of the complainant esteemed company. As a distributor accused had purchased Pesticides, Fungicides, Herbicides, Insecticides and plant nutrients on a running account basis. The accused as a Proprietor of his firm and for payment of supply of goods, he KABC030042522024 Judgment CC No.2224/2024
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issued a cheque bearing No.629843 dated 15/11/2023 for a sum of Rs.6,06,849/- and the said cheque was issued for clearing outstanding liability of the accused towards the complainant. When the said cheque was presented by the complainant on 20/11/2023 through its banker, same was returned on 21/11/2023 with endorsements as 'Cheque Destroyed'. Same was intimated to the accused. Thereafter complainant got issued legal demand notice on accused on 07/12/2023. In-spite of service of the same, accused has not come forward to make payment nor replied to the accused. The accused has intentionally issued the destroyed cheque in favour of the complainant in order to cheat the complainant and thereby committed an offence punishable u/S.138 of the N.I.Act. Hence, the present complaint.
3. On presentation of the complaint, this Court has taken cognizance for the offence punishable U/sec. 138 of N.I. Act. The summons was issued to the accused. In pursuance to KABC030042522024 Judgment CC No.2224/2024
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the service of summons, the accused has put his appearance through his Counsel and was enlarged on bail.
4. The complaint copies were furnished to the accused as per Sec. 207 of Cr. P. C. The plea was recorded under Sec. 251 of Cr.P.C. The accusation was read over to the accused and to which he has pleaded not guilty and claimed to be tried.
5. To substantiate the case, the complainant has relied on sworn statement affidavit as examination-in-chief and examined Authorized Representative as PW.1 and got marked 7 documents as Exs.P.1 to P.31. He has not been cross examined by the accused. The statement of the accused U/Sec. 313 of Cr.P.C. was recorded. He has not chosen to lead any defence evidence.
6. Heard the arguments of the learned counsel for the complainant. The accused has not advanced any arguments. Meticulously perused the available materials on record. KABC030042522024 Judgment CC No.2224/2024
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7. Based on the above materials the points that would arise for consideration are as follows:
POINTS FOR CONSIDERATION
1. Whether the complainant proves that the accused has issued a cheque bearing No.629843 dated 15/11/2023 for a sum of Rs.6,06,849/- in discharge of legally enforceable debt and same were dishonored due to 'Cheque Destroyed' and thereby committed an offence punishable U/Sec. 138 of N.I. Act ?
2. What order ?
8. The above points are answered as below:
Point No.1: In the AFFIRMATIVE Point No.2: As per final order for the following:-
:REASONS::
9. On Point No.1: The narration of the entire averments of the complaint, as narrated at the inception, is desisted in order to avoid the repetition.
10. However, it is well settled that whenever complainant alleged that the accused has committed an offence punishable U/Sec.138 of N.I. Act, obviously, the KABC030042522024 Judgment CC No.2224/2024
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complainant has to establish that there was a legally enforceable debt and to discharge the said legally enforceable debt, the accused has issued the cheque and subsequently the said cheque has been dishonored. Keeping in view of these main and important ingredients of section 138 of N.I. Act, proceed to discuss the evidence available on record.
11. As already been stated above, the complainant has examined its Manager as PW.1. He has filed affidavit in lieu of his examination in chief U/Sec.145 of N.I. Act reiterating the entire averments of the complaint and got marked Ex.P.1 to
31.
12. The Ex.P.1 is the True copy of the board resolution, Ex.P.2 is the true copy of certificate of registration, Ex.P.3 is the Cheque, Ex.P.4 is the Return Memo, Ex.P.5 is the copy of the demand notice, Ex.P.6 is the Postal Receipt, Ex.P.7 is the postal tracking, Ex.P.8 to 22 are the Tax Invoice and E-way bills, Ex.P.23 to P.31 are the courier receipts. On perusal of Ex.P.3, makes it clear that it supports the stand taken by the KABC030042522024 Judgment CC No.2224/2024
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complainant. As per clause (a) of proviso to Sec.138 of N.I. Act the cheque is to be presented for encashment within the period of its validity from the date on which the cheque has been issued. The Ex.P.3 cheque bears the date 15/11/2023 and it was presented on 21/11/2023, which is within the prescribed period.
13. As per clause (b) of proviso to Sec. 138 of N.I. Act, the complainant is required to issue notice, in writing, to the drawer/accused making a demand for repayment of the said cheque amount within 30 days from the date of receipt of information about the dishonor of the cheque. Ex.P.5 is the copy of the demand notice, Ex.P.6 is the Postal Receipt, Ex.P.7 is the postal tracking. Thereby, it is found that the complainant has issued legal notice within 30 days from the date of knowledge of dishonor of cheque. Thus, the provisions of clause (a) & (b) of proviso to Sec.138 of N.I. Act have been complied with.
KABC030042522024 Judgment CC No.2224/2024
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14. As per clause (c) of the proviso to Sec. 138 of N.I. Act, the drawer/accused is entitled to have 15 days time to make the payment of the cheque amount. Even after elapse of 15 days time for making payment the accused has not made payment. Further the clause (b) of Sec. 142 of N.I. Act makes it clear that the complaint has to be filed within 30 days from the date of cause of action arose. The endorsement made by this Court on the complaint reveals that the complainant presented the complaint on 18/01/2024 and as such, this complaint is well within the period of limitation. Therefore, this Court is of the considered opinion that the complainant has complied all the necessary components which attracts section 138 of N.I. Act. Even the accused has not challenged any of the mandatory requirements to be complied by the complainant.
15. As per the Judgment of Hon'ble Supreme in case of APS FOREX SERVICES PRIVATE LTD., vs. SHAKTI INTERNATIONAL FASHION LINKERS AND ORS., reported in KABC030042522024 Judgment CC No.2224/2024
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[2020] ACR 457 wherein it is held that, once accused has admitted issuance of cheque which bears his signature, there is presumption that there exists legally enforceable debt or liability under Sec.139 of N.I. Act. In the present case the issuance of the cheque and the signature on the cheque is not disputed nor contested by the accused. The said decision is aptly applicable for raising presumption in favour of complainant.
16. Therefore, when once it is proved that the cheque belonged to the accused coupled with proof that the cheque bears the signature of the accused. The presumption must be that the cheque was issued for a legally enforceable debt or liability. As this Court holds that the complainant has proved the execution of Ex.P.3, cheque and the accused failed to rebut the presumption then this Court has to draw a presumption that the cheque has been drawn for lawful consideration. As a result, the presumption U/sec.139 of N.I. Act is drawn in favour of complainant.
KABC030042522024 Judgment CC No.2224/2024
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17. The accused has not rebutted the presumption raised against him. The accused has not cross-examined the complainant witness nor challenged the documents exhibited by the complainant. Even the accused has not led the defence side evidence. There is nothing on record to doubt the case of the complainant and documents. In view of the same there is absolutely no embargo to consider the case of the complainant to hold that the accused is guilty of the alleged offence.
18. It is now fairly settled by catena of decisions of the Hon'ble Apex Court that the presumption under Section 139 of the N.I. Act extends even to the existence of the debt and it is for the drawer of the said cheque to rebut the said presumption. Of course, it is also fairly well-settled that the accused is not required to prove his defence beyond reasonable doubt. The standard of proof regarding the defence plea is one of preponderance of probabilities. But in the present case the accused has even failed to establish KABC030042522024 Judgment CC No.2224/2024
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preponderance of probability of defence in his favour nor to create a doubt about the case of the complainant.
19. From the evidence on record, it is clear that the accused has failed to rebut the presumption and complainant has proved the existence of the legally recoverable debt and also issuance of cheque for discharge of the said debt. Admittedly the complainant has complied with all requirements of Section 138 of the N.I. Act. The statutory notice as required by law had been issued. The version of complainant is certain and stands proved. Hence, the above point is answered accordingly.
20. On Point No. 2 : In view of the above findings the accused is found guilty for the offence punishable under Section 138 of N.I. Act. It is just and proper to sentence the accused to pay fine equivalent to the cheque amount along with appropriate penalty. Thereby, proceed to pass the following:
KABC030042522024 Judgment CC No.2224/2024
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:: ORDER ::
• In exercise of Sec. 264 of Cr.P.C., the accused is convicted for the offence punishable U/Sec. 138 of N.I. Act and sentenced to pay fine of Rs. 6,30,000/-, and in default of payment of fine the accused is sentenced to undergo simple imprisonment for a period of one year.
• Out of fine amount of Rs. 6,30,000/- a sum of Rs. 6,25,000/- shall be paid to the complainant as compensation as per Section 357 (3) of Cr.P.C and the remaining amount is defrayed to the state as its expenses. • Office is directed to supply the copy of this Judgment to the accused, free of cost.
(Dictated to the Stenographer directly on computer, typed by him, corrected by me and then pronounced in the Open Court, on this the 1st day of August, 2025.) CK Digitally signed by C K VEERESH KUMAR VEERESH KUMAR Date: 2025.08.02 11:17:00 +0530 Sd/-
(VEERESH KUMAR C.K.) XXXVIII ADDL.C.J.M., BENGALURU KABC030042522024 Judgment CC No.2224/2024
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ANNEXURE
1. List of Witnesses examined for Complainant: PW.1: Sri.Muttana gowda
2. List of Witnesses examined for Defence:
-Nil-
3. List of Documents marked for Complainant:
Ex.P.1 : True copy of the Board Resolution. Ex.P.2 : True copy of Certificate of registration.
Ex.P.3 : Cheque. Ex.P.4 : Bank Endorsement. Ex.P.5 : Copy of Legal notice. Ex.P.6 : Postal receipt. Ex.P.7 : Postal Tracking.
Ex.P.8 to 22 : Tax Invoices and E-way bills. Ex.P.23 to 31 : Courier receipts.
4. List of Documents marked for Defence:
- Nil -
Sd/-
(VEERESH KUMAR C.K.) XXXVII ADDL.C.J.M., BENGALURU