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Bangalore District Court

M/S Ninth Avenue Industries vs Persons: M/S Odm Media Service India on 14 September, 2018

     IN THE COURT OF THE XXV ADDL. CHIEF
   METROPOLITAN MAGISTRATE, AT BANGALORE

      Dated this the 14th    day of September , 2018.
 Present: Smt Shirin Javeed Ansari, BA LL.B(Hon's)LL.M
          XXV Addl. Chief Metropolitan Magistrate,
         Bangalore.

                    C.C.No. 21902/2012

Complainant:                M/s NINTH AVENUE INDUSTRIES
                            PRIVATE LTD
                            No.33, Hospital Road,
                            Bangalore-560 053.
                            Rep by its GPA holder Mr.Karigowda

                            ( By Sri.M.Purushotham - Advocate )


                              - Vs -
Accused persons:            M/s ODM MEDIA SERVICE INDIA
                            PRIVATE LTD
                            NO.705, BARTON CENTRE,
                            M.G.Road, Bangalore
                            Represented by its Authorised
                            Signatories.
                            1.Mr.Pawan Somappa,
                            2.Mr.Arun Kumar

                            ( By Sri.Vipin Kumar Jain-Advocate )

Offence complained of:      U/s. 138 of Negotiable Instruments
                            Act.

Plea of accused persons: Pleaded not guilty.
Final Order:                Accused are Acquitted.
Date of judgment:           14.09.2018.

               JUDGMENT UNDER SEC.355 OF CR.PC

       The complainant filed this complaint under Sec.200

Cr.P.C. against the accused      for the offence punishable
                                 2        C.C.No.21902/2012


under Sec.138 Negotiable Instruments Act ( (herein after

called the act for reference)

      2. The case of the prosecution is as under :

  The complainant submits that the complainant is

carrying business Flex and Vynl Goods in the address

mentioned in the cause title and thus supplying the same

to its various customers on cash and credit basis.      It is

further submitted by the complainant     that the accused is

also one of the customers of the complainant who

approached for supply of Flex and Vynl goods and

purchased the goods from the complainant on credit basis

under various invoices. Towards the said purchase the

accused is still due Rs.4,00,612/- towards the balance

principle amount.    The accused was required to pay the

credit amount within 30 days from the date of invoices,

failing which he is liable to pay interest at the rate of 24%

per annum as per Trade, usages and customs of the

business and also as agreed upon by the accused with the

complainant for delayed payments.

      3. It is further submitted by the complainant that in

order to discharge the liabilities towards the balance

amount and towards the above said principal and interest

amount finally the accused issued a cheque bearing
                                3         C.C.No.21902/2012


No.001227 dated 31/5/2012 for Rs.50,000/- drawn on

City Union Bank Ltd., Viajaynagar Branch, Bangalore.

       4. The complainant further submitted that on the

date of issuing the cheque the accused represented to the

complainant that there is      sufficient funds in his bank

account and his banker will honour the same if the

complainant present the same for its encashment.             The

complainant believing the representations made by the

accused presented the said cheque with its banker for

encashment. The complainant further submits that to the

shock and surprise the cheque was returned from the

Bank      with   an   endorsement   "Funds   Insufficient"   on

1/6/2012. Immediately, after the dishonour of the cheque

the same was intimated to the accused. But the accused

did not make any payment towards the return cheque

amount.      Hence, legal notice has been issued to the

accused on 21/6/2012 calling upon the accused to make

the payments in respect of the above dishonoured cheque

amount within 15 days from the date of receipt of the legal

notice.    The said legal notice was sent to the accused

through the Registered Post Acknowledgment Due.              The

accused has received the legal notice sent through RPAD

on 23/6/2012. The accused person who has received the
                                 4       C.C.No.21902/2012


legal notice has not replied to the said notice and failed to

make payment towards the cheque amount.          Hence, the

accused has committed the offence punishable under

section 138 of Negotiable Instrument Act and liable to be

convicted. Hence, the complainant prays for conviction of

the accused and award compensation in favour of the

complainant under section 357 of Cr.P.C r/w section 117

of Negotiable Instrument Act.

     5. In pursuance of the process issued, the accused

person appeared before the court on and is on bail.

     6. Copy of the prosecution papers are furnished to

the accused person as required under law.

     7. Plea under Sec.138 N.I.Act is framed , read over

and explained to the accused person       in vernacular. The

accused person pleaded not guilty and claimed the trial.

     8.      PW1- got examined and got marked the

documents at Ex.P.1 to Ex.P.60 for the complainant .

     9 . The incriminating circumstances found in the

case of prosecution against the accused     is read over and

explained to them in vernacular. The accused persons

denied the same.    No oral or documentary evidence placed

on behalf of the accused    .
                               5          C.C.No.21902/2012


     10.     Heard arguments and perused the material on

record.

     11. On the basis of the contents of the complaint

the following points arise for my consideration. :

       1.    Whether the complainant proves
             beyond   reasonable   doubt     that
             the accused is/are guilty of alleged
             offence?

       2. What order ?


       12.     My findings to the above points
             are as follows"

             Point No.1 :In the   Negative.

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


                              REASONS

      13.Point No.1      The complainant submits that the

complainant is carrying business Flex and Vynl Goods in

the address mentioned in the cause title and thus

supplying the same to its various customers on cash and

credit basis.   It is further submitted by the complainant

that the accused is also one of the customers of the

complainant who approached for supply of Flex and Vynl

goods and purchased the goods from the complainant on

credit basis under various invoices. Towards the said
                                6          C.C.No.21902/2012


purchase the accused is still due Rs.4,00,612/- towards

the balance principle amount. The accused was required

to pay the credit amount within 30 days from the date of

invoices, failing which he is liable to pay interest at the rate

of 24% per annum as per Trade, usages and customs of

the business and also as agreed upon by the accused with

the complainant for delayed payments.

       14. It is further submitted by the complainant that in

order to discharge the liabilities towards the balance

amount and towards the above said principal and interest

amount finally the accused issued a cheque bearing

No.001227 dated 31/5/2012 for Rs.50,000/- drawn on

City Union Bank Ltd., Viajaynagar Branch, Bangalore.

       15. The complainant further submitted that on the

date of issuing the cheque the accused represented to the

complainant that there is      sufficient funds in his bank

account and his banker will honour the same if the

complainant present the same for its encashment.              The

complainant believing the representations made by the

accused presented the said cheque with its banker for

encashment. The complainant further submits that to the

shock and surprise the cheque was returned from the

Bank    with   an   endorsement     "Funds    Insufficient"   on
                                7           C.C.No.21902/2012


1/6/2012. Immediately, after the dishonour of the cheque

the same was intimated to the accused. But the accused

did not make any payment towards the return cheque

amount.      Hence, legal notice has been issued to the

accused on 21/6/2012 calling upon the accused to make

the payments in respect of the above dishonoured cheque

amount within 15 days from the date of receipt of the legal

notice.    The said legal notice was sent to the accused

through the Registered Post Acknowledgment Due.           The

accused has received the legal notice sent through RPAD

on 23/6/2012. The accused person who has received the

legal notice has not replied to the said notice and failed to

make payment towards the cheque amount.            Hence, the

accused has committed the offence punishable under

section 138 of Negotiable Instrument Act and liable to be

convicted.

     16.     The complainant       in order prove his case has

produced Ex.P.1 to 60 . Ex.P.1 is the Certified copy of the

General Power of Attorney, Ex.P.2 is the cheque in question

dt.31.5.2012.bearing No.001227 for Rs.50000/- Ex.P3 is

the cheque return memo dated 1.6..2012.          Ex.P.4 is the

legal notice. Ex.P.5 is the postal acknowledgement. Ex.P6

is the ledger account extract. Ex.P.7 to Ex.P.26 are the tax
                                 8          C.C.No.21902/2012


invoices. Ex.P.27       to Ex.P.47 are the delivery challans.

Ex.P.48 to Ex.P.60 are the tax invoices.

       17. On careful perusal of the entire oral evidence of

Pw     1   it is   found that in all Pw 1 has produced 60

documents before this court.        Ex.P.7 to Ex.P.60 are the

tax invoices and delivery challans respectively. On perusal

of the entire tax invoices and delivery challans, it is found

that   nothing is clear as to who signed the said delivery

challans and the tax invoices on behalf of the       accused

company. Though PW 1 states in his cross examination

that the employee of the accused company signed on behalf

of the accused company, but, there is no endorsement to

that effect in the said tax invoices or the delivery challans

as stated supra.       Mere stating that an employee of the

accused company has signed the delivery challans on

behalf of the accused      is not sufficient. The complainant

has to prove       this aspect of the matter .   Though PW 1

states that a person by name Pankaj who is an employee

of the complainant company,          had been to   deliver the

goods to the accused company, but,        Pw 1 himself admits

in his cross examination that before filing his examination

in chief affidavit , Pw 1 has not enquired said Pankaj

regarding the above said matter.      Neither said Pankaj was
                               9            C.C.No.21902/2012


enquired with nor he has been examined before this court

by the complainant . Under these circumstances, it is

crystal clear that the evidence of Pw 1 is only a hear say

evidence and Pw 1 does not have any personal information

regarding the facts of the case.

     18.      Admittedly the invoices produced by the

complainant     are the computer generated copies.          As

stated by PW 1 himself one Mr.Veerendar Singh the then

Accountant    used to maintain and feed the data in the

computers.     But, no such person has been examined by

the complainant before this court.       As admitted by PW 1

himself all the invoices got marked by them are not

annexed with due certificate as required under the law

pertaining to the computer generated copies.

     19.   Admittedly the complainant has not produced

the dispatch challan delivery bearing DC3 shown by them

in the tax invoice and the delivery challans.      As admitted

by PW 1 himself in his cross examination dt.19.5.2016

they have not produced DC Number of the invoices

produced before this court.        Some of the tax invoices are

not at all signed by anyone. Absolutely some of the invoices

does not bear the signature of       either the accused or any

other person on behalf of the accused. It is the bounden
                               10           C.C.No.21902/2012


duty of the complainant         to produce the appropriate

documents before the       court in compliance       with the

necessary provisions of law by filing necessary certificate .

But , no such effort has been made by the complainant

in this case.   The invoices produced by the complainant

does not find any nexus            with the delivery challans

produced by the complainant .         Admittedly, the invoices

are the     computer     generated copies         which lack

certification by the complainant as per law.        Therefore,

under these circumstances, the said copies of the            tax

invoices   and the delivery     challans in absence of any

certification cannot be given evidential value.             The

complainant       has failed to prove his case beyond

reasonable doubt and also failed to make out the nexus

between the invoices and the delivery challans.           No any

person or the employee of the complainant company, who

had the first hand information about the alleged delivery

of the goods to the accused company has been examined

by the complainant.    Nowhere in the complaint it is stated

by the complainant that Pw 1 has got personal knowledge

about the transaction. In the absence of such pleadings,

it is difficult to rely upon the evidence lead by Pw 1.
                                11            C.C.No.21902/2012


     20.   No doubt, the complainant              has produced the

account statement.   But, the same also cannot be relied

upon in absence of any certification as required under law.

When the accused himself has denied the receipt of goods,

it becomes the bounden duty of the complainant to prove

the supply of the goods first. Mere producing the

documents without proving the said documents is not

sufficient. The complainant has utterly failed to show that

he has supplied the goods to the accused person              . The

complainant    has also failed to prove his case beyond

reasonable doubt. Therefore, no presumption can be made

available in favour of the complainant .           Therefore, under

these circumstances of the case, it cannot be said that

the cheque was issued by the              accused towards the

discharge of   any   debt or        liability .    The case of the

complainant is surrounded by suspicion. The complainant

has not made any efforts to remove those suspicion from

the mind of the court.    Accordingly, I answer point NO.1

in the Negative.


     21. Point No.2: In view of the reasons stated and

discussed above, the complainant has miserably             failed to

prove the guilt of the accused       for the offence punishable

under Sec.138 Negotiable Instruments Act .
                                  12           C.C.No.21902/2012


      Hence, I proceed to pass the following :

                               ORDER

Exercising the powers conferred upon this court u/s.255(1) Cr.P.C., the accused are hereby Acquitted of the offence punishable under Sec.138 Negotiable Instrument Act. The bail bond of the accused and that of the sureties if any stand cancelled.

(Dictated to the Stenographer directly on the computer, typed by her , corrected and signed then pronounced by me in the open court on this the 14th day of September , 2018).

(SHIRIN JAVEED ANSARI ) XXV A.C.M.M., BANGALORE.

ANNEXURE

1) LIST OF WITNESSES EXAMINED FOR THE COMPLAINANT:

P.W.1 : Mr.Karigowda

2) LIST OF DOCUMENTS MARKED FOR THE COMPLAINANT:

Ex.P.1 : General Power of Attorney Ex.P.2 : Cheque Ex.P.3 : Bank memo Ex.P.4 : Legal notice Ex.P.5 : Postal Acknowledgment Ex.P.6 : Ledger Account Ex.P.7 : Tax Invoice Ex.P.8 to 26 : Tax inovices 13 C.C.No.21902/2012 Ex.P.27 to 46 : Delivery Challans. Ex.P.47 to 56 : Tax Invoices. Ex.P.57 &58 : Delivery Challans. Ex.P.59 : Purchase order Ex.P60 : Delivery Challan.
3) LIST OF WITNESSES EXAMINED FOR THE ACCUSED:- -

-Nil-

4) LIST OF DOCUMENTS MARKED FOR THE ACCUSED

-Nil-

( SHIRIN JAVEED ANSARI ) XXV A.C.M.M.,BANGALORE.

14 C.C.No.21902/2012 15 C.C.No.21902/2012