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[Cites 6, Cited by 0]

Bangalore District Court

Against The Accused For The Offence vs Through Rtgs Pertain To Corporation ... on 4 May, 2018

                             1                  CC.22420/2016 (J)




IN THE COURT OF THE XV ADDL CHIEF METROPOLITAN
         MAGISTRATE AT BANGALORE CITY.

            Dated this the 04th day of May-2018
              Present: Subhash.B.Hosakalle.
                       B.Com.,LL.B (Spl)
                       XV Addl.C.M.M., Bangalore.
          Judgment U/s.355 of the Cr.P.C. 1973.

1.Sl.No.of the case              CC.No.22420/2016



2.Name of the Complainant:       Mr.V.Venkataraju,
                                 Aged about 37 years,
                                 S/o.Late.Venkataiah,
                                 No.16, 80 feet Main Road,
                                 R.T.Nagar,
                                 Bangalore - 560 032.
3.Name of the accused:           Mr.Aziz Khan,
                                 Aged about 45 years,
                                 Father's Name Not Known,
                                 Residing at No.8/1,
                                 8th 'A' Cross, Kempaiah Block,
                                 J.C.Nagar,
                                 Bangalore - 560 006.
4.The offence complained of U/s.138      of              Negotiable
:                           Instruments Act.

5.Plea of the accused:           Pleaded not guilty.

6.Final Order:                   Acting   U/s.255(2)       Cr.P.C.,
                                 accused is Convicted.

7.Date of final Order            04th day of May-2018.

                                 ***
                                 2                   CC.22420/2016 (J)




   This complaint is filed U/Sec.200 of Cr.P.C., by the

complainant     against   the       accused   for    the    offence

punishable U/Sec.138 of the Negotiable Instruments Act,

1881.

   The facts in brief is as under.

   2.       That the complainant and accused are known to

each other from many years. The accused has approached

the complainant and sought financial help for his cloth

business.    Accordingly in the month of May-2013 the

complainant has advanced a loan of Rs.10,00,000/- to the

accused through RTGS pertain to Corporation Bank,

R.T.Nagar, Bengaluru. The accused has assured that he

would return the same within six months. But he failed to

do so.

   3.       That after expiry of six months the complainant

requested to the accused to clear liability. In response to

the request of the complainant the accused has issued a

post dated cheque bearing No.765533, dated 01.062016 for

Rs.5 lakhs drawn on ICICI Bank Ltd., branch R.T. Nagar,

P & T Colony, Bengaluru.
                                3                CC.22420/2016 (J)




   4.     The complainant has presented the said cheque

for encashment purpose through his Bankers by name

Corporation   Bank,   branch       R.T.Nagar, Bengaluru,      on

09.08.2016.   It was dishonored with an endorsement of

'No.55 - Account Blocked Situation Covered In 2125'.

Thereafter the complainant has issued legal notice dated

18.08.2016 through registered post to the accused and he

received the same on 20.08.2016. Despite of the notice, the

accused failed to repay the cheque amount.         Hence this

complaint.


   5.     After the institution of the complaint it has been

registered in PCR No.10387/2016 and took cognizance of

the offence.. The sworn statement of the complainant has

been recorded and on the basis of sworn statement and

other materials on hand the criminal case has been

registered against the accused and issued summons to

him. In response to the summons the accused put his

appearance through his learned counsel and got enlarged

on bail. The prosecution papers were supplied to the
                               4                CC.22420/2016 (J)




accused and his plea was recorded. Accused has denied

the plea and claimed for trial.

     6     During trial the complainant has been examined

as PW.1 and got marked Ex.P.1 to Ex.P.6. After closer of

the evidence of the complainant the 313 statement of the

accused has been recorded. The defence is one total denial.

The accused has not produced the defence evidence.


    7.     Heard the argument of both parties, perused the

materials and the following points would arise for my

consideration.

         1. Whether the complainant proves that
           the accused towards the discharge of
           legally enforceable debt has issued
           the    cheque     for    a    sum    of
           Rs.10,00,000/-         and    on    its
           presentation for encashment purpose
           it    was    dishonored      with   an
           endorsement of "No.55 - Account
           Blocked Situation Covered In 2125"
           and    thereby    the    accused    has
           committed    an   offence    punishable
           U/Sec.138 of N.I. Act, 1881 ?
                                5                 CC.22420/2016 (J)




         2. What order?
    8.      My   answers      on   the   above      points    for

consideration are as under.

Point No.1 : In the Affirmative

Point No.2 As per final order for the following:-

                           REASONS

    9.      Point No.1:-The complainant has been examined

as PW-1 and got marked the Ex.P.1 to P.6. The PW-1 has

filed his affidavit on oath as examination-in-chief and it is

nothing but verbatim of the complaint. The PW-1 has got

marked Ex.P.1 to P.6. As already it has been stated that

the 313 statement of the accused has been recorded, but

he did not produce his defence evidence. It is necessary to

mention that there is no mandate on part of the accused to

enter into the witness box to produce his defence evidence.

On the other hand he is at liberty to utilize the materials

placed on record by the complainant as his defence

evidence.
                              6                 CC.22420/2016 (J)




     10.   I have gone through the Ex.P.1 to P.6. The

Ex.P.1 is the cheque dated 01.06.2016 and Ex.P.1 is the

signature of the accused on the cheque, Ex.P.2 is the Bank

endorsement dated 09.08.2016, Ex.P.3 is the office copy of

the legal notice dated 18.08.2016, Ex.P.4 is the postal

receipt, Ex.P.5 is the Tracking Report issued by the Postal

department informing to the sender of the legal notice

regarding delivery of item on 20.08.2016 and Ex.P.6 is the

Bank account statement of the complainant issued by the

Corporation Bank, Branch R.T.Nagar, Bengaluru, dated

13.05.2016.

     11.   On perusal of the Ex.P.1 to P.6 which disclose

that the complainant has presented the cheque for

encashment purpose within statutory period and it further

disclose that within 30 days the complainant has issued

legal notice to the accused and that was duly served on the

accused on 20.08.2016. The service of legal notice on the

accused has proved by Ex.P.5 Tracking Reports produced

by   the   complainant.   Further   the   order-sheet    dated

04.10.2016 disclose that within statutory limit of time the
                              7               CC.22420/2016 (J)




complainant has presented this complaint.        Thus, the

above said events shows that the complainant has

complied the provisions of Section 138 and 142 of the

N.I.Act.

    12.    The   learned   counsel   appearing     for    the

complainant vehemently submitted in his argument that

the complainant has paid Rs.10 lakhs to the accused

through RTGS. He further submitted in his argument that

the accused towards the discharge of debt in part has

issued the cheque for a sum of Rs.5 lakhs.         He also

submitted that when the accused was examined U/s.313

of Cr.P.C., he has answered to question No.2 in Affirmative

manner. By placing reliance upon the said answer the said

learned counsel for the complainant submitted in his

argument that accused has admitted regarding receipt of

Rs.10 lakhs from the complainant through RTGS. He

further submitted in his argument that the statutory notice

issued by the complainant has been duly served on the

accused.   He further submitted that the complainant is

entitled for interest @ 9% because the complainant has
                               8                  CC.22420/2016 (J)




transferred Rs.10 lakhs to the account of the accused

through RTGS process. In support of this line of argument

the learned counsel for the complainant has placed his

reliance upon the decision reported in AIR 2015 Supreme

Court 2579 - Mainuddin Abdul Sattar Shaikh V/s.Vijay

D.Salvi. "Negotiable Instruments ( 26 of 1881), Section 138

- dishonor of cheque - compensation - accused sentenced

to undergo simple imprisonment for a period of five months

- compensation awarded to the extent of twice the cheque

amount and simple interest thereon 9% per annum to the

complainant.     With due respect I have gone through the

said decision.

    13.   Having     regard   to   the   point   of   argument

advanced by the learned counsel for the complainant, I

have gone through the pleading and evidence placed on

record by the complainant. Already it has been stated that

the accused has not produced his defence evidence. There

is no mandate on the part of the accused to produce his

defence evidence.
                                              9                           CC.22420/2016 (J)




   14.        The complainant has been examined as PW-1.

He has filed his affidavit on oath as examination-in-chief

and wherein he has been deposed as per the averments

made in the complaint. As already it has been stated that

the accused has not produced defence evidence. It is also

stated that there is no compulsory on part of the accused

to enter into the witness box to produce his defence

evidence.

   15.         The specific stand of the complainant is that he

has advanced a loan of Rs.10 lakhs to the accused through

RTGS from his Bank account to the account of the

accused.         This stand of the complainant has been

unequivocally admitted by the accused.                               In this regard I

have extracted the relevant question and answer recorded

of accused when he was examined as per provision of

Section 313 of Cr.P.C. The relevant question and answer is

read thus:-

    ¥Àæ±ÉßB 2) ¥Áæ.¸Á.1 vÀªÀÄä ¸ÁPÀëåzÀ°è ºÉüÀĪÀÅzÉãÉAzÀgÉ ªÁå¥ÁgÀPÁÌV
              vÀªÀÄUÉ ºÀt ¨ÉÃPÁVzÀÄ,Þ D ¥ÀæPÁgÀ ªÉÄà 2013 gÀ°è
              Dgï.n.f.J¸ï ªÀÄÄSÁAvÀgÀ ¦ügÁå¢ EªÀgÀ PÀq¬      É ÄAzÀ vÀªÀÄä
              SÁvÉUÉ 10 ®PÀë gÀÆ. dªÀiÁ DVgÀÄvÀz         Û É JAzÀÄ ¸ÁQë
              £ÀÄr¢gÀÄvÁÛg.É EzÀPÉÌ ¤ªÀÄä GvÀÛgÀªÉãÀÄ?
                              10               CC.22420/2016 (J)



    GvÀÛgBÀ ¸Àj


    16.      In view of the admission made by the accused

the complainant has established the material fact that

there was a financial transaction between him and the

accused in respect of 10 lakhs. But it is pertinent to note

that the claim of the complainant is restricted Rs.5 lakhs.

The complainant filed this complaint based on the cheque

the Ex.P.1 for Rs.5 lakhs, dated 01.06.2016 and the

signature of the accused has been marked at Ex.P.1(a). As

per the provisions of Section 138 of the N.I.Act, the Drawer

of the a cheque is at liberty to issue a cheque in favour of

drawee of the cheque either towards payment of debt in full

or in part. Thus, from the facts and circumstances of the

case it can be gathered that the present accused might

have been issued the cheque Ex.P.1 in favour of the

complainant towards the repayment of debt in part.          At

this juncture, I have gone through the cross-examination

of the PW-1. This witness in his cross-examination para

No.2 has been admitted that in the month of March-2014

the accused has issued cheque to him for Rs.5 lakhs and
                                 11                 CC.22420/2016 (J)




he got honored the same.         On the basis of this piece of

evidence an inference can be drawn that the accused

already    repaid   half   of   the   debt   in   favour   of   the

complainant. Thus, the complainant might have filed this

complaint towards the recovery balance debt of Rs.5 lakhs

from the accused.      No doubt the PW-1 in his cross has

stated that he can produce his Bank account extract for a

period from January-2014 to April-2014. Despite of giving

sufficient opportunity to the complainant who failed to

produce the said extract for said period.            This lacuna

would not cause any adversity on part of the complainant.

What circumstances were prohibited the accused to

produce his own Bank account extract to show that he

already paid questioned cheque amount through Bank

process.   Therefore, non production of statement by the

complainant as stated in his cross would not come into the

help of the accused in any way.

   17.     Further on perusal of cross-examination of the

PW-1 what has stated that one Saiffulla Khan who is none

other than the brother of the accused has paid cheque
                             12               CC.22420/2016 (J)




dated 8.1.2014 for a sum of Rs.2,65,000/- in favour of the

complainant. The PW-1 in his further cross-examination

has been unequivocally stated that the said cheque had

been issued by Saiffulla Khan on behalf of the accused and

he got honored the said cheque for said sum. Thus, this

unequivocal admission given by the PW-1 undisputedly

proves that as against the instant cheque amount already

the complainant has received Rs.2,65,000/- from the

accused.

   18.     During further cross-examination the PW-1 has

stated that he has received cheque for a sum of Rs.2 lakhs

from one Saiffulla Khan on 17.01.2014. But it is important

to note that no evidence has been placed on record by the

accused to show that the said cheque for Rs.2 lakh also got

honored by the complainant towards the payment of

alleged cheque amount.      Therefore, the said piece of

evidence would not come into the help of the accused to

say that as against the questioned cheque he has already

repaid cheque amount of Rs.4,65,000/-. But on the other

hand on careful analysis of evidence of the PW-1 as
                                 13                      CC.22420/2016 (J)




extracted herein above, it is evident that as against the

alleged amount mentioned in the alleged cheque the

present accused has repaid Rs.2,65,000/- in favour of the

complainant. Thus the amount already paid is required to

be adjusted while determination of the compensation

amount.

      19.    In view of the evidence narrated herein above

and    the   question    and    answer   recorded           under    313

Statement as extracted herein above, it is undisputedly

clear that, the accused has admitted regarding issue of

cheque marked at Ex.P.1 and his signature on it marked at

Ex.P.1(a). In view of such admission attracts the ratio laid

down by our Hon'ble Supreme Court of India in its decision

reported     in   2011   (11)    SCC     -     441      -    Rangappa

V/s.Sri.Mohan      and    SCC    2015        (8)   Page      No.378     -

T.Vasanthkumar      V/s.Vijayakumari.              In   view    of    the

evidence placed on record, reasons assigned herein above

and the ratio laid down by our Hon'ble Supreme Court of

India in the top noted decisions, I am of the opinion that

the accused failed to rebut the statutory presumption as
                              14                CC.22420/2016 (J)




contemplated    U/s.118(a)   and   139    of   the    N.I.Act.

Accordingly, I am of the opinion that the accused has

issued the cheque in favour of the complainant towards the

discharge of legally enforceable debt. Hence, the accused

is found guilty for the offence punishable U/s.138 of the

N.I.Act.

    20.    Under the given facts and circumstances of the

case the complainant is not entitled for interest as claimed

by his learned counsel during his argument.          Because,

already the complainant has received part payment as

against amount mentioned in the cheque from the brother

of accused.    It is also observed that the amount of

Rs.2,65,000/- which had already paid to the complainant

has to be adjusted while determination of fine in the case

on hand.   Thus, aforesaid reasons, the accused is found

guilty for the offence punishable U/s.138 of the N.I.Act.

Accordingly, I proceed to answer the Point No.1 in

Affirmative.
                                15                   CC.22420/2016 (J)




    21.    Point No.2 : In view of the reasons assigned on

Point No.1, I proceed to pass the following:-

                             ORDER

As per the provisions of Sec.255(2) Cr.P.C. the accused is hereby Convicted for the offence punishable u/s.138 of NI Act, 1881. The accused shall liable to pay fine of Rs.2,35,000/- (Rupees Two Lakhs Thirty Five Thousand Only.) On deposit of fine amount the complainant is entitled for compensation of Rs.2,30,000/- (Rupees Two Lakhs Thirty Thousand only). The remaining amount of Rs.5,000/- is to be forfeited to the State.

In default of payment of the fine amount the accused shall undergo simple imprisonment for six months.

The Bail bond and the personal bond executed by the accused stands cancelled. Office to forfeit the cash surety of Rs.5,000/- to the State after the expiry of appeal period.

16 CC.22420/2016 (J) Copy of the judgment shall be furnished to the accused at free of cost. (Dictated to the Stenographer, transcript thereof is computerized and printout taken by him, is verified and then pronounced by me in Open Court on this the 04th day of May- 2018.) (Subhash.B.Hosakalle) XV Addl. CMM., Bangalore.

ANNEXURE Witnesses examined for the Complainant:-

PW.1 V.Venkataraju.

Documents marked for the Complainant:-

       Ex.P.1            Original cheque.
       Ex.P.1(a)         Signature of the accused.
       Ex.P.2            Bank endorsement.
       Ex.P.3            Legal Notice.
       Ex.P.4            Postal receipts.
       Ex.P.5            Article Tracking Report.
       Ex.P.6            Bank Account Extract.

Witnesses examined For Defence:- Nil Documents marked for Defence:- Nil (Subhash.B.Hosakalle) XV Addl.CMM., Bangalore.

17 CC.22420/2016 (J) 04.05.2018 (Judgment Pronounced in the Open Court Vide Separate Order sheet ORDER As per the provisions of Sec.255(2) Cr.P.C. the accused is hereby Convicted for the offence punishable u/s.138 of NI Act, 1881. The accused shall liable to pay fine of Rs.2,35,000/- (Rupees Two Lakhs Thirty Five Thousand Only.) On deposit of fine amount the complainant is entitled for compensation of Rs.2,30,000/- (Rupees Two Lakhs Thirty Thousand only). The remaining amount of Rs.5,000/- is to be forfeited to the State.

In default of payment of the fine amount the accused shall undergo simple imprisonment for six months. 18 CC.22420/2016 (J) The Bail bond and the personal bond executed by the accused stands cancelled. Office to forfeit the cash surety of Rs.5,000/- to the State after the expiry of appeal period.

Copy of the judgment shall be furnished to the accused at free of cost.

(Subhash.B.Hosakalle) XV Addl.CMM., Bangalore.