Bangalore District Court
M/S Manappuram Chits (K) Pvt. Ltd vs Mrs. Pushpa L. Narayan on 5 November, 2025
KABC030797522019
IN THE COURT OF THE LIII ADDL. CHIEF JUDICIAL
MAGISTRATE AT BENGALURU CITY.
Dated this the 05th day of November 2025.
PRESENT:SRI.S.CHINNASWAMY, B.A.LL.B.,
LIII ADDL.C.J.M., BENGALURU.
Case No. :- C.C.No.25869/2019
Complainant M/s.Manappuram Chits(K) Pvt.Ltd.,
registered office at No.34, 2nd Floor,
10th 'B' Main, Opp Cosmo Club
Jayanagar 3rd Block,
Bengaluru-560011
Branch:Banashakari
Represented by its Authorised
Representative Sri.Subhani Shaik
S/o Sri.Moulali.
(By Sri.P.P.J. Advocate.)
-V/s-
Accused :- Mrs.Pushpa L Narayan
W/o Dr.M.T.Lakshminarayan,
No.745, 15th Main, 18th Cross,
Near Devagiri Venkateshwar,
Temple, Banashankari 2nd Stage,
Bengaluru-560070.
(By Srirama., Advocate.)
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Offence complained of :- U/sec.138 of N.I.Act.
Plea of accused :- Pleaded not guilty.
Opinion of the Judge :- Accused found guilty.
Date of order :- 5th November, 2025.
JUDGMENT
The complainant has filed this complaint under Section 200 of Cr.P.C against the accused for the offence punishable under Section 138 of N.I.Act.
2. It is the case of the complainant that the complainant M/s Manappuram Chits(K) Pvt., Ltd., is a company incorporated under the provision of Companies Act, 1956 and conducting chits as per the provisions of the Chit Funds Act,1982, the complainant company is represented through its Authorized Senior Assistant, Sri.Subhani Shaik.
3. That the accused has subscribed chit bearing No.BSK001LD43 before the complainant company for 3 C.C.No.25869/2019 chit value of Rs.25,00,000/- payable at Rs.50,000/- per month in fifty installments. Accused participated in the chit auction and became prize bidder and draw and received prize money of Rs.16,25,000/- after deducting the bid amount on 16.05.2014. that the accused along with other guarantors has executed an on demand promissory note in favour of complainant company for receiving the amount. After receiving the prize amount accused has not repaid the chit installments and only paid 32 installments after that he became defaulter. Since the accused failed to make the payment complainant company has issued legal notice to accused. Thereafter filed the dispute before a Deputy Registrar of chits at Benglaluru in dispute No.DRB/3/CFS/239/2016-17 for recovery of balance amount of Rs.9,48,010/-. The said dispute is pending for consideration. At the time the accused has issued the cheque bearing No. 454932 for Rs.9,30,000/- dated 19.01.2019 as a part 4 C.C.No.25869/2019 dispute claim amount, in favour of complainant company drawn on Oriental Bank of Commerce and further accused has requested not to proceed with the above said dispute. Further the complainant company has presented the above said cheque on 21.01.2019 for encashment through their banker, Karur Vysya Bank, Basavangudi Branch, Bengaluru, but the said cheque was returned dishonored with an endorsement "Cheque Irregularly Drawn Amount in Words and Figures Differ" dated 22.01.2019.
4. Further the complainant has issued legal notice dated 19.02.2019 by RPAD calling upon the accused to repay the said amount within 15 days from the date of receipt of said notice, the said notice has been returned as unserved with postal shara "Unclaimed" on 25.02.2019. After knowing the fact of issuance of notice to accused has not repaid the same within 15 days of the receipt of notice as called far. The accused has intentionally issued above 5 C.C.No.25869/2019 cheque and failed to discharge legally enforceable debt and thereby accused has committed the offence punishable U/sec.138 of N.I.Act.
5. After perusal of complaint this court has taken cognizance against the accused for the offence punishable U/sec.138 of N.I.Act and issued summons to accused, after service summons, accused has appeared and released on bail. After that the sum substance of accusation was read over to accused in her language known to her, for which she did not pleaded guilty and claims to be tried, under takes to cross examine the complainant, but not filed her defence.
6. After sufficient opportunities was given the accused has not come forward to cross examine the complainant/PW2 and not appear before this court. Hence incriminating evidence appearing against accused as per section 313 of Cr.P.C is dispensed. 6
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7. Heard arguments on complainant's side. On the other hand accused has not advanced arguments, hence posted for judgment.
8. After considering material available on record the following points that arise for my consideration are as under;
1. Whether the complainant proves beyond all reasonable doubt that the accused towards discharge of her liability issued the cheque bearing No.454932 drawn on Oriental Bank of Commerce for Rs.9,30,000/- in favour of complainant, when he presented the said cheque it was dishonored for the reason "Cheque Irregularly Drawn Amount in Words and Figures Differ" in the account maintained by the accused?
2. Whether the complainant proves beyond all reasonable doubt that he issued demand notice to the accused, the accused did not repay the chit amount within statutory period and thereby she has committed an offence punishable U/Sec.138 of N.I.Act?
3. What order ?
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9. That in order to prove the above points complainant, holder of the authorization letter himself examined as PW2 got marked Ex.P1 to Ex.P13 documents. The sworn statement of complainant is treated as chief examination as per decision of Hon'ble Apex court in the case of Indian Bank Association Vs Union of India and Others reported in 2014(5) SCC 590 this court treated the sworn statement of complainant as chief examination, accused has filed application U/sec.145(2) of N.I.Act and reserved her right to cross examine the complainant, but she has not filed her defence.
10. After considering the material available on record this court answered to the above points as here under:
Point No.1 & 2 :- In the Affirmative. Point No.3 :- As per final order, for the following;8
C.C.No.25869/2019 :: R E A S O N S ::
11. Point No.1 and 2:- These points are inter-linked with each other, are taken for common discussion and avoid repetition of facts of evidence.
12. That in order to prove his case complainant company authorized person himself filed his chief examination affidavit in the form of sworn statement affidavit and got marked Ex.P1 to Ex.P13 documents.
13. It is specific case of the complaint that the complainant M/s Manappuram Chits(K) Pvt., Ltd., is a company incorporated under the provision of Companies Act, 1956 and conducting chits as per the provisions of the Chit Funds Act,1982, the complainant company is represented through its Authorized Senior Assistant, Sri.Subhani Shaik.
14. That the accused has subscribed chit bearing No.BSK001LD43 before the complainant company for 9 C.C.No.25869/2019 chit value of Rs.25,00,000/- payable at Rs.50,000/- per month in fifty installments. Accused participated in the chit auction and became prize bidder and draw and received prize money of Rs.16,25,000/- after deducting the bid amount on 16.05.2014. that the accused along with other guarantors has executed an on demand promissory note in favour of complainant company for receiving the amount. After receiving the prize amount accused has not repaid the chit installments and only paid 32 installments after that he became defaulter. Since the accused failed to make the payment complainant company has issued legal notice to accused. Thereafter filed the dispute before a Deputy Registrar of chits at Benglaluru in dispute No.DRB/3/CFS/239/2016-17 for recovery of balance amount of Rs.9,48,010/-. The said dispute is pending for consideration. At the time the accused has issued the cheque bearing No. 454932 for Rs.9,30,000/- dated 19.01.2019 as a part 10 C.C.No.25869/2019 dispute claim amount, in favour of complainant company drawn on Oriental Bank of Commerce and further accused has requested not to proceed with the above said dispute. Further the complainant company has presented the above said cheque on 21.01.2019 for encashment through their banker, Karur Vysya Bank, Basavangudi Branch, Bengaluru, but the said cheque was returned dishonored with an endorsement "Cheque Irregularly Drawn Amount in Words and Figures Differ" dated 22.01.2019.
15. Further the complainant has issued legal notice dated 19.02.2019 by RPAD calling upon the accused to repay the said amount within 15 days from the date of receipt of said notice, the said notice has been returned as unserved with postal shara "Unclaimed" on 25.02.2019. After knowing the fact of issuance of notice to accused has not repaid the same within 15 days of the receipt of notice as called far. The accused has intentionally issued above 11 C.C.No.25869/2019 cheque and failed to discharge legally enforceable debt and thereby accused has committed the offence punishable U/sec.138 of N.I.Act.
16. Further the complainant has issued legal notice dated 19.02.2019 by RPAD calling upon the accused to repay the said amount within 15 days from the date of receipt of said notice, the said notice has been returned as unserved as per endorsement dated 25.02.2019. After knowing the fact of issuance of notice, accused has not repaid the same within 15 days of the receipt of notice as called for. The accused has intentionally issued above cheque and failed to discharge legally enforceable debt and thereby accused has committed the offence punishable U/sec.138 of N.I.Act.
17. In support of his oral testimony complainant has produced Ex.P1, is the copy of the Board Meeting, Ex.P2 is the authorization letter given to 12 C.C.No.25869/2019 PW1. Ex.P12 and Ex.P13 are the copy of the Board Meeting and authorization letter issued by the Managing Director, Manappuram Chits Karnataka Private Limited dated 09.05.2024 in favour of PW2 Subhani Shaik there is no dispute with regard to sanctity of the complainant company and its authorized person.
18. Ex.P7 is the Cheque dated 09.01.2019 belongs to Oriental Bank of Commerce pertaining to accused account. In this regard it is the case of the complainant that the accused is subscriber to chit from the complainant company, bearing No.BSK001LD43 for chit value of Rs.25,00,000/- (Rupees Twenty Five lakhs) and agreed to repay Rs.50,000/- per month for a period of 50 months. After availing the chit amount accused has failed to repay the same. Towards discharge of above said chit amount accused has issued Ex.P7, when it is 13 C.C.No.25869/2019 presented it is dishonoured with the reasons "Cheque Irregularly Drawn Amount in Words and Figures Differ" on dated 22.01.2019. On the other hand accused has not denied the above said availment of chit amount from complainant company and in order to discharge the above said chit amount she has issued the above said cheque to the complainant company towards discharge of liability of chit amount, also accused has not disputed the issuance of cheque and liability.
19. Further the complainant has produced Ex.P8 is the Bank endorsement it discloses that accused has not maintained sufficient amount to honour the cheque. After dishonour of the cheque the complainant has issued the legal notice to accused through his counsel on dated 19.02.2019 as per Ex.P10(a) postal cover returned as unclaimed on 25.02.2019. In the said notice complainant company 14 C.C.No.25869/2019 has called upon the accused to repay the chit amount of Rs.9,30,000/- within 15 days of receipt of notice , even after knowing the fact of legal notice accused has not repaid the said amount. Hence the complainant has filed this complaint.
20. Further it is important to note the section 118 and 139 of N.I.Act, it is primary burden lies on the complainant as per U/sec.118 of N.I.Act, then burden shifted on the accused to prove that the said cheque has not been issued for the legally recoverable debt and no consideration was passed. In this regard no Iota of evidence is adduced by the accused, as discussed in the above paras the transaction taken between complainant and accused is admitted and further it discloses that the said cheque was given for consideration and there is no dispute with regard to as to date of time of transfer and as to order of instrument.
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21. Further as per section 139 of N.I.Act that it shall be presumed, unless the contrary is proved, that the holder of a cheque of the nature referred to in Section 138 for discharge, in whole or in part, of any debt or other liability. Hence, it is settled principle of law that the said presumption can be rebutted by the accused by raising probable defence.
22. As per section 139 of N.I. Act there is always presumption in favour of the complainant that the accused issued the cheque for legally recoverable debt, anyhow this presumption is rebuttable one. In order to rebut the said presumption, even though accused has appeared and released on bail and under takes to cross examine the complainant, but has not filed her defence, either even after sufficient time is granted, accused has not come forward to cross examine the complainant. Hence, the statement of 313 of Cr.P.C is dispensed. 16
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23. After considering the material available on record discloses that in order to discharge the legal liability accused has issued Ex.P7 cheque in favour of complainant company same is dishonoured when it is presented and further complainant has complied the provisions of section 142 of N.I.Act.
24. Further the presumption available in favour of complainant as per under section 118 and 139 of N.I.Act are rebuttable presumptions, but accused has failed to rebut the presumptions available to complainant. Accordingly accused has committed the offence punishable U/sec.138 of N.I.Act. Hence, Point Nos.1 and 2 are answerd in the Affirmative.
25. Point No.3:- Once the accused is found guilty for the offence punishable U/sec.138 of N.I.Act, she may be punished with imprisonment for a period of two years or with fine which may be extended to 17 C.C.No.25869/2019 twice of the amount of the cheque or with both. Accordingly, this court proceed to pass the following;
ORDER
Acting under Section 255(2) of
Cr.P.C, the Accused is Convicted for the offence punishable under Section 138 of N.I.Act and sentenced to pay fine of Rs.9,30,000/- (Nine Lakhs Thirty Thousand Only).
In default of payment of fine amount, the accused shall under go simple imprisonment for six months. Out of the total fine amount, an amount of Rs.9,25,000/- shall be paid to the complainant company as compensation under Section 357 of Cr.P.C and remaining fine of Rs.5,000/- shall be remitted to the state.
The bail bond of the accused stands canceled, the cash surety of Rs.10,000/-
that was deposited by accused on 19.08.2025 is ordered to be forfeited to the state.
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C.C.No.25869/2019 The accused is entitled for free copy of this judgment U/sec.363 of Cr.P.C. But today accused is not present before the court. Hence, free copy of judgment is not supplied to accused. If accused voluntarily appears before the court, free copy will be served on accused.
(Dictated to the Stenographer, typed by him, corrected by me and then pronounced in the Open Court on 5th November 2025.) (S.CHINNASWAMY) LIII ACJM,Bangaluru.
::ANNEXURE::
Witnesses examined on behalf of the Complainant:
PW2 :- Subhani Shaik Documents marked on behalf of the Complainant:
Ex.P1 :- Board of Resolution Minutes of Meeting.
Ex.P2 :- Authorization letter.
Ex.P3 :- Chit Agreement.
Ex.P4 :- Promissory Note.
Ex.P5 :- Cash/Bank Voucher.
Ex.P6 :- Member Account copy.
Ex.P7 :- Cheque.
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Ex.P8 Bank Endorsement
Ex.P9 Legal Notice.
Ex.P9(a) Postal receipt.
Ex.P10 & Postal cover and its enclosures.
10(a) &
Ex.P11
Ex.P12 Complaint.
Ex.P13 Extracts of Minutes of the Meeting.
Witnesses examined on behalf of the Accused:- Nil- Documents marked on behalf of the Accused:- Nil-
(S.CHINNASWAMY) LIII ACJM,Bangaluru.