Bangalore District Court
E.S.I. Corporation vs Chairperson on 1 July, 2022
IN THE COURT OF XXXVIII ADDL.CHIEF METROPPOLITAN
MAGISTRATE, BENGALULRU
Present : Sri. P. Shivaraj,
B.Com. LL.B.
XXXVIII A.C.M.M Bengaluru
Dated this the 1st day of July - 2022
C.C.NO: 7219/2018
COMPLAINANT: E.S.I. Corporation,
Rep. Sri.S.Chandrashekar Social Security
Officer,
No.23, 9th B and 10th C Main,
BTM Ring Road,
Opp. I.O.C. Petrol Bunk
Bengaluru - 560029.
(Sri. K.Krishnappa,Advocate.)
// VS //
[
Smt.Dr.Syamala Reddy
ACCUSED:
Chairperson
M/s.SGR Technical and Educational
Society, No.111/1, SGR Colllege
Main Road, Munnekolala,
Marthahalli Post, Bangalore560 037.
(Sri. K.Vijaya Kumar, Advocate.)
Offence : U/s/ 138 of N.I Act of 1881.
Plea of accused : Pleaded not guilty.
Final Order : Accused is convicted.
Date of judgment : 01/07/2022
(P. SHIVARAJ)
XXXVIII A.C.M.M.
Bengaluru.
C.C.No.7219/2018
: J U D G E M E N T :
The complainant is a Government Organization and
is a statutory body constituted u/S.3 of the Employees
State Insurance Act 1948 and its Social Security Officer
Mr.S.Chandrasekar has filed private complaint U/s 200
of Cr.P.C. against the accused alleging that, accused has
committed the offence punishable under section 138 of
Negotiable Instrument Act, 1881( For short N.I.Act,1881).
2. Complainant case is as follows:
Complainant is a Government Organization. Accused
is the Chairperson of M/s.SGR Technical and Educational
Society and it is covered under the provisions of
Employees State Insurance Act, 1948.
Accused has failed to pay the contribution amount of
Rs.2,90,002/ payable to the complainant organization as
per Section 40 of ESI Act. Hence, complainant
organization issued the recovery certificate u/S.45 of the
said Act, vide claim No.C19 on 16/6/2015 and
13/08/2015, for Rs.1,53,737/ and Rs.1,36,265/. In
order to pay the said contribution amount, accused has
issued the cheque bearing No.423158 dated 15/12/2017
for Rs.1,97,788/ in favour of the complainant
organization which is drawn on Indian Bank, Bangalore
Branch.
3. As per the instructions of the accused
complainant organistion presented the aforesaid cheque
C.C.No.7219/2018
for encashment through its banker. The aforesaid cheque
was returned dishonoured with an endorsement "Funds
Insufficient", to that effect, complainant organisation
received the cheque return memo from its banker on
26/12/2017. Complainant organisation informed the
aforesaid fact to the accused and it has issued legal notice
by way of RPAD to the accused on 11/01/2018 and it was
duly served on her. Further, accused failed to repay the
cheque amount. Complainant organization alleged that,
accused has intentionally not maintained the sufficient
amount in her bank account to honour the cheque.
Inasmuch, accused has committed the offence punishable
under section 138 of N.I. Act. On the aforesaid allegations,
the complainant organization approached this court and
prays this court to punish the accused and to award the
compensation.
4. Originally the private complaint was filed before
Hon'ble XXVCMM court Bengaluru. The learned presiding
officer of that court, took the cognizance for the offence
punishable U/s 138 of N.I.Act and recorded. On finding
primafacie case, process was issued to the accused.
Later as per special notification No. ADM/1/5/2020
dt.26.05.2020, case is transferred to this court.
5. After service of the summons to the accused, she
appeared before this court through her counsel, and she
got released on bail. In compliance with provision of
C.C.No.7219/2018
section of 207 of Cr.P.C. papers of the prosecution were
supplied to the accused. The substance of the accusation
is readout to accused, in the language known to her, she
pledged not guilty and submit that she is having defense
to make.
6. In order to prove the guilty of the accused, the
present Social Security Officer of the complainant
organisation Sri.Ashok S/o.Karmbir Singh has filed
examination in chief Affidavit and he has relied on 7
documents as per Ex.P.1 to Ex.P.7 and he is fully cross
examined. Accused statement is recorded as per Sec.313
of Cr.P.C. She has denied the same and submit that, she
is having evidence to lead.
7. Later, when the case is set down for defence
evidence complainant and accused have settled the case
out side the court and they have filed joint memo,
reporting their settlement, that, they have settled the case
out side the court for Rs.2,02,788/ and accused has
agreed to pay the settled amount on or before
10/09/2022.
8. I have heard the arguments and perused the
materials available on record.
9. The following points that arise for my
determination:
C.C.No.7219/2018
:POINTS:
1. Whether the complainant
organization and accused have
voluntarily settled the cheque
amount as per the terms and
conditions of their Joint Memo.?
2. What Order?
10. After carefully going through the materials
available on record and taking into consideration of facts
and circumstances of the case, my finding to the above
points are as follows:
Point No.1 : In the Affirmative
Point No.2 : As per final order,
for the following:
REASONS
11. Point No.1: PW1 being the authorized person
of the complainant organization, he reiterated the
complaint averments in his examinationinchief
affidavit.
12. when case is set down for defence evidence,
complainant and accused have voluntarily compromised
and settled the case and they have filed joint memo
reporting their settlement that, they have settled the case
for Rs.2,02,788/ and accused has agreed to pay the
settled amount in 4 installments i.e., first installment of
Rs.52,788/ and rest of three installments of Rs.50,000/
C.C.No.7219/2018
each, commencing from 10/6/2022 to 10/9/2022 as
stated in the joint memo and they prays this court to
pass the judgment as per their settlement and it will have
the binding effect on them.
13. In view of the joint memo filed by the parties, it
is evident that, accused has admitted the issuance of
cheque to the complainant organization and her
signature there on, Further, she has admitted the alleged
transaction with the complainant organization and her
liability towards complainant organization. In other
words accused has admitted the entire case and
documents of the complainant organization in toto.
Further, in the joint memo they have voluntarily reported
and agreed that, they have settled the case for
Rs.2,02,788/. Accused has agreed to pay the settled
amount as stated in the joint memo i.e., on or before
10/9/2022.
14. The aforesaid fact is consented/acknowledged
by the complainant organization. It is also true that,
complainant organization has reserved it's right, to
recover the settled amount as per law, in case if there is
any default from the accused. The said fact is also
consented by the accused.
15. Apparently, accused has admitted the entire
case of the complainant organization and they have
reported their settlement by filing joint memo, inasmuch,
C.C.No.7219/2018
there is no material on record to disbelieve the reported
settlement by the parties and it is deserved to be
accepted. In view of the joint memo filed by complainant
organization and accused, it is crystal clear that accused
has admitted his guilt as alleged by the complainant
organization. Further more, complainant organization
and accused have agreed for their own settlement and
they have taken initiative with repayment schedule for
the settled amount and they prays this court to pass the
judgment accordingly by awarding the fine amount as
compensation to the complainant organization for the
enforcement of their settlement, such being the case and
to meet the ends of justice and equity, and by considering
the admitted settlement. as reported by the parties as per
their join memo, I am answering this point in the
Affirmative.
16. POINT NO.2: For the foregoing reason and
discussion, on point No.1, I proceed to pass the following:
ORDER
Exercising the power conferred U/Sec.255(2) of Cr.P.C. accused is hereby convicted for the offence punishable U/Sec. 138 of N.I.Act1881.
Accused is sentenced to pay the fine amount of Rs.2,02,788/ to the complainant organization on or C.C.No.7219/2018 before 10/9/2022 as agreed in the joint memo and it is as follows:
Installment Date Amount 1 10/06/2022 Rs.52,788/- 2 10/07/2022 Rs.50,000/- 3 10/08/2022 Rs.50,000/- 4 10/09/2022 Rs.50,000/-
In default, accused shall under go simple imprisonment for a period of one year.
The entire fine amount shall be paid to the complainant organization as compensation as per section 357 of Cr.P.C.
The reported joint memo shall form part of the record.
The bail bond and surety bond of accused shall continue till she pays the agreed settled amount as per the joint memo.
Office is directed to supply the free copy of this judgment to the accused forthwith.
(Dictated to the Stenographer directly on computer, typed by him, same was corrected by me and then pronounced by me in the open court on 1st day of July 2022).
(P. SHIVARAJ) XXXVIII A.C.M.M. Bengaluru.
C.C.No.7219/2018 ANNEXURE
1) List of Witnesses Examined on behalf of the Complainant organization:
PW.1 : Sri.Ashok S/o.Karambir Singh.
2) List of exhibits marked on behalf of the Complainant organization:
Ex.P.1 : Copy of Authorization letter. Ex.P.2 : C/c of Notification dt.8/11/2021 Ex.P.3 : Original cheque. Ex.P.4 : Cheque return memo. Ex.P.5 : Notice given to accused. Ex.P.6 : Postal Acknowledgement. Ex.P.7 : Copy of Employers Registration form.
3) List of Witnesses Examined on behalf of the Accused: NIL
4) List of exhibits marked on behalf of the Accused: NIL (P. SHIVARAJ) XXXVIII A.C.M.M. Bengaluru.
C.C.No.7219/2018 (Judgment pronounced in Open Court vide separate order ) ORDER Exercising the power conferred U/Sec.255(2) of Cr.P.C. accused is hereby convicted for the offence punishable U/Sec. 138 of N.I.Act1881.
Accused is sentenced to pay the fine amount of Rs.2,02,788/ to the complainant organization on or before 10/9/2022 as agreed in the joint memo and it is as follows:
Installment Date Amount 1 10/06/2022 Rs.52,788/- 2 10/07/2022 Rs.50,000/- 3 10/08/2022 Rs.50,000/- 4 10/09/2022 Rs.50,000/-
In default, accused shall under go simple imprisonment for a period of one year.
The entire fine amount shall be paid to the complainant organization as compensation as per section 357 of Cr.P.C.
The reported joint memo shall form part of the record.
C.C.No.7219/2018 The bail bond and surety bond of accused shall continue till she pays the agreed settled amount as per the joint memo.
Office is directed to supply the free copy of this judgment to the accused forthwith.
(P. SHIVARAJ) XXXVIII A.C.M.M. Bengaluru.
C.C.No.7219/2018