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[Cites 7, Cited by 0]

Bangalore District Court

For The Offence Punishable U/S.138 Of vs And Complainant Entered Into ... on 6 March, 2017

                          1            CC.NO. 17262/2012



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

       Dated this the 06th day of March 2017
         Present: Sri.V.S.Pandit,B.A.,LL B.,
               XV Addl.C.M.M., Bangalore.

       Judgment U/s.355 of the Cr.P.C. 1973.
1.Sl.No.of the case            CC.No.17262/2012

2.Name of the Complainant:     Sri.Atul Gala,
                               S/o.Sri.Shantilal Gala,
                               Aged about 44 years,
                               Partner: M/s.Raaj Exports,
                               C-001, Raheja Park,
                               Magadi Main Road,
                               Agrahara Dasarahalli,
                               Bangalore-560 079.
3.Name of the accused:         Smt.M.D.Devakumari,
                               W/o.Sukant Nayak.,
                               Aged about 39 years,
                               Residing at No.57, 3rd Main,
                               1st Stage, Manjunathanagar,
                               Rajajinagar,
                               Bangalore-560 010.
4.The offence complained of U/s.138      of                Negotiable
                            Instruments Act.
:
5.Plea of the accused:         Pleaed not guilty.

6.Final Order:                 Acting   U/s.255(2)           Cr.P.C.,
                               accused is Convicted.
7.Date of final Order          06th day of March 2017.


                         -----------
                                     2         CC.NO. 17262/2012



      1. The    accused    has   been       prosecuted    by      the

complainant for the       offence       punishable   U/s.138       of

Negotiable Instrument Act - 1881 (hereinafter referred as

NI Act for brevity)

     2.    Case of the complainant in brief are as under -

    a.    It is the case of the complainant that he is the

partner of Raaj Exports. The accused was introduced to

the complainant by common friend in the year 2009 as a

Tutor to teach the son of the complainant, who is studying

in the P.U.C. Accused started giving tuition to the son of

the complainant for the subject, Business studies and

Accounts. Within a short period of time accused has

gained the confidence of the complainant.

     b.      It is further case of the complainant that

accused and complainant entered into Memorandum of

Understanding on 13.07.2011 to promote the sale of

medical equipments. Accused telling the complainant that

she has good relations with the political big-wigs and lured

the complainant to invest in exports and assured of huge

profit to the extent of 200% to 300%.
                                 3         CC.NO. 17262/2012



     c.    Accused informed the complainant that she has

good contact with the company called M/s.Janvi Impex

Pvt.Ltd., based at Kanashie at Ghana. The said company

deals with the metal scrap and HMS - 1 and 2.             It is

further stated by the accused that within a short time she

will be one of the Director of the said company. Accused

went to Africa in the year 2011 and communicated with

the complainant that she has negotiated with the sellers

for the import of metal scrap into India which could be a

profitable venture for the complainant.

    d.    It is further case of the complainant that accused

made correspondence through E-mail and sent an invoice

on 02.09.2011 for procuring 1000 Metric Tons of HMS

scrap metal from the port of Tema in Ghana, West Africa

at the rate of 280 USD per metric ton and directed the

complainant to transfer payment of 30,000 USD to her

account with HFC Bank Ghana Limited on Spintex Road,

West Africa in the name of M/s.Janvi Impex Pvt. Ltd.,

Thereafter accused sent another communication to the

complainant showing the actual estimate of finance
                                 4         CC.NO. 17262/2012



required of 2,80,000 USD for 1000 MT and to remit 15%

i.e., $ 42,000 USD and another adjustment amount of

Rs.12,000 USD to one Sukant Nayak by TC transfer and

balance to be paid for the next 5 days.

    e.   On 5.09.2011 as per the request of the accused

complainant has transferred 30,000 USD to the HFC Bank

Ghana Limited in favour of account No.00084 4608/

0161632181012     and   copy   of   remittance     in   foreign

currency from the Bank of India from his account

No.840420110000513.

    f.   On 08.09.2011 in favour of M/s.Janvi Impex Pvt.

Ltd 2,38,000 USD was transferered. On 7.10.2011 USD

2000     was   deposited.    Therefore     total    sum       of

Rs.1,25,41,892/- was remitted to the accused in the

account of M/s.Janvi Impex Pvt.Ltd. Complainant even

provided flight tickets to accused and one Sukant Nayak

through traveller Track traveller solutions for to and fro

travel tickets to Africa amounts to Rs.3,24,582/-. Apart

from that through travelers cheques from the Bank of

India through Classic Forex a sum of Rs.25,15,402/- was
                                  5        CC.NO. 17262/2012



provided along with 2000/- USD of cash towards the

incidental expenses on the trips.     Out of which 22,000

USD in the form of travelers cheque was returned which

could not be encashed by the accused in Ghana and same

was credited to the account of the complainant.

    g.    It is further specific case of the complainant that

accused allegedly said to have negotiated with M/s.Janvi

Impex Pvt. Ltd., for the import of metal scrap into India

and failed to deliver the goods and stated that the

materials are lying the Sea Port.

    h.    After that the complainant started insisting the

return of his money as the accused failed to deliver the

goods. Accused promised to supply the material scrap and

left for Africa during September-2011 from Hyderabad and

sent an E-mail to the complainant stating that the metal is

a banned commodity and could not be exported from

Africa.   Accused admitted her liability issued post dated

cheque bearing No.28419 for a sum of Rs.1,06,85,695

drawn on Syndicate bank, Banashankari branch, dated

3.12.2011.
                                6        CC.NO. 17262/2012



    i.   Complainant soon came to know that there was

no such order banning export metal scrap in Africa.

Complainant having doubt about the investment being

made by the accused to purchase scrap material and

requested the accused to provide details of the investment,

but accused failed to provide details. Accused assured to

return the investment, but kept postponing the same on

pretext or the other. 78,000 USD was returned to the

complainant during November-2011 and promised to

return the rest of the amount within a short time.

   j.    Complainant then realized he was taken for a

ride and only with an intention to deceive and cheat

accused has played the game and received the amount in

the name of M/s.Janvi Impex Pvt. Ltd., Accused has

misused the said amount and invested the amount in the

business venture of M/s.Janvi Impex Pvt. Ltd. dealing

with Sea foods, rice, Sugar, Timber, Cooking oil and

household articles.     Accused started giving excuses

whenever the amount was demanded. When the accused

came back to India, she issued another cheque in favour
                               7        CC.NO. 17262/2012



of M/s.Raaj Exports from her personal account after

calculating her liability for another sum of Rs.70 lakhs

dated 20.12.2011 drawn on Syndicate Bank.

   k.   Complainant presented the cheques through his

banker Bank of India, Cantonment Branch, Bengaluru on

04.02.2012. But to the utter shock and surprise both the

cheques have been returned unpaid for the reason

"Insufficient Fund" as per memo dated 06.02.2012. When

the said fact was intimated to the accused, she expressed

her regrets and requested the complainant to give some

more time to make the arrangement. At the instance of

the accused, once again cheques were presented for

collection on 14.03.2012. Again on 17.03.2012 cheques

were returned unpaid for the reason "Insufficient Funds".

Again at the instance of the accused cheques were

presented for the third time, but the cheques were

returned unpaid for the reason "Insufficient Funds" on

10.04.2012. Despite issuance of the legal notice, accused

did not purposely receive the notice and somehow

succeeded in getting the endorsement from the Postal
                                    8           CC.NO. 17262/2012



authorities "as no such person in this number. Accused

deliberately did not receive the notice, therefore, the

complainant is constrained to file the complaint.


      3.   After   taking    cognizance,   this     court   issued

summons to the accused. In response to the summons,

accused appeared and was enlarged on bail. Plea for the

offence was read over and explained to the accused.

Accused pleaded not guilty and pleads her innocence.

      4. To sustain the charge leveled against the accused,

the complainant examined himself as PW.1 and got

marked the documents at Ex.P.1 to P.28 on behalf of the

complainant.

      5.     After   conclusion    of   the    evidence     of     the

complainant, statement of the accused u/s.313 Cr.P.C.,

was    recorded.      Accused     denied      the   evidence     and

documents as false.         Accused herself examined as DW.1

and got marked documents at Ex.D.1 and D.2.

      6. Heard both sides.
                                     9        CC.NO. 17262/2012



     7. The points that arise for my consideration are as
under:-
               1) Whether the complainant has proved
               that cheque was issued by the accused
               for discharge of legally enforceable debt,
               the same was returned unpaid for the
               reason "INSUFFICIENT FUNDS" notice
               was    not     complied.   Hence   accused
               committed an offence under Sec.138 of
               N.I. Act ? ?
                2)    What Order ?
          8. My findings on the above points are as follows:
                  Point No.1 : In the Affirmative,
                  Point No.2 : As per final Order, for the
            following;
                                     REASONS

     9. Point No.1 - It is the case of the complainant that

accused had deceived the complainant to the tune of

Rs.1,25,41,892/- on the pretext that she had invested the

said amount in the M/s.Janvi Impex Pvt. Ltd., which is

the dealer of supplier of scrap materials.            Since the

accused has failed to supply the goods as agreed, to

discharge the liability cheques impugned have been

issued. On the presentation of the cheques, both the
                                  10          CC.NO. 17262/2012



cheques     have    been    dishonoured      for     the   reason

"Insufficient Funds". Accused deliberately did not receive

the notice. Therefore, when the notice is dispatched to the

correct address it is deemed to have been served upon the

accused. Despite service of notice, accused did not bother

to make the payment.


     10. It is the case of the accused that she was giving

tuition to the son of the complainant for a period of two

years. The complainant was pressurizing the accused to

join Raaj Exports.      At the instance of the complainant,

memorandum         of   understanding      was     executed     and

according to the said agreement they are liable to share

the profit and loss to the extent of 60:40. After that the

complainant sent the accused to the Africa on behalf of

Raaj Exports for the marketing of hospital furnitures.

Complainant had transferred a sum of Rs.1,25,00,000/-

in favour of Janvi Impex Pvt. Ltd., for the purchase of

metal scrap.   Since the amount was in excess what is

required,   therefore    Rs.45   to   50    lakhs     re-sent    to

complainant. Since due to expiry of Visa period they could
                                   11    CC.NO. 17262/2012



not complete the work within 30 days, therefore accused

returned to India. After that once again accused was sent

to South Africa by the complainant. On several occasions

Janvi Impex Pvt. Ltd., was requested by the accused to

supply the scrap materials, but they did not, therefore

accused has filed the complaint against the said company

before the South Africa Police.


     11. It is further case of the accused that the

complainant started torturing the accused to return the

amount. Further when the accused was not in the house,

her cheques were stolen by the complainant. The cheques

impugned pertains to the dead bank account of the

accused. Unable to bear the harassment given by the

complainant once again went to South Africa and filed

complaint against two persons. Complainant in the

meanwhile has filed complaint before the Sanjayanagar

Police.   Passport was seized by the police, therefore she

could not go back to South Africa to pursue payment.

After the receipt of the summons, accused came to know

about the misuse of the cheques. Except the signature in
                                 12        CC.NO. 17262/2012



the disputed cheques, rest of the contents have not been

filled up by the accused.       Apart from that it is also

contended that at the time of availing loan from the

Syndicate bank for the purpose of construction of house at

that point of time she had given signed blank cheques.

Since cheques have been returned by the bank official,

therefore said cheques have been kept in the house. No

notice has been issued by the complainant before filing the

complaint.   Therefore, issuance of the cheques for the

discharge of liability has been specifically denied.


     12. Both the learned Advocates have submitted

written arguments and submitted oral arguments.           The

learned counsel for the complainant at the outset has

submitted that signature and drawing of the cheque from

the account of the accused is not denied.       Therefore, in

view of the presumption accused is liable to be convicted.

The defence set up by the accused is unsustainable for the

simple reason that there is no any complaint filed against

the complainant for having stolen the cheques. The Bank

is also not intimated.   Apart from that relying upon the
                                 13      CC.NO. 17262/2012



various documents, it is submitted that accused during

the course of the cross examination has admitted with

regard to the transfer of amounts from the account of the

complainant.   Admittedly scrap materials have not been

supplied to the complainant. There is nothing on record

produced by the accused to show that she in fact had

invested the amount in the Janvi Impex Limited.             No

records to show that she lodged complaint against the

officials of the Janvi Implex Ltd.. The learned counsel for

the complainant has submitted that Janvi Impex Pvt. Ltd.,

had been created by the accused only to deceive the

complainant.    Therefore for all these reasons learned

counsel for the complainant sought for conviction.


     13. As against these arguments, learned counsel for

the accused has submitted that admittedly the amounts

have been transferred to the Janvi Impex Pvt. Ltd.,

Therefore in the absence of the company, complaint itself

is not maintainable.   The complainant has violated the

R.B.I. rules and regulations.    Complainant has to take

prior permission from the Reserve Bank of India for any
                                14         CC.NO. 17262/2012



amounts remitted in the Foreign Exchange. Income Tax

returns have not been submitted. Notice has been sent to

the wrong address purposefully.      According to M.O.U at

Ex.P.2 accused is liable to share the profit and loss at the

rate of 60:40. Apart from that admittedly complainant has

stated in his affidavit that he had sent total amount of

Rs.1,25,41,892/-, but the cheques in question as per

Ex.P.15 and P.17 is for a sum of Rs.1,76,85,695/-. This

itself clearly indicates that blank cheques were issued and

the complainant filled up the cheques according to his

convenience.


     14. Further    elaborating     the   submission    it    is

contended that admittedly accused is a teacher and giving

tuitions and earning of Rs.500/- per day. Therefore, the

assertion of the complainant that she has issued cheques

for a sum of Rs.1,76,85,695/- is false.


     15. Apart from that it is contended that as per

Ex.P.25 FIR has been registered against the accused and

her husband by the Sanjayanagar Police for the offences
                                     15         CC.NO. 17262/2012



punishable U/s.406, 408 and 420 R/W.Section 34 of IPC.

FIR is dated 08.11.2011. impugned cheques alleged to

have    been   issued    on   03.12.2011        and   20.12.2011

respectively. It is unlikely and highly improbable that the

accused would issue cheques after registration of the FIR.

Therefore for all these reasons, the learned counsel for the

accused sought for acquittal.


       16. It is not in dispute with regard to signature and

drawing of the cheques from the account of the accused.

Therefore, initial presumption has to be drawn that

cheques in question were issued for discharge of liability.

However, said presumption is rebuttal in nature and it is

for the accused to rebut the presumption by placing direct

or   circumstantial     evidence.        The   onus   is   that    of

preponderance of probabilities.          Accused need not put

forth his defence beyond all reasonable doubt. This view

is fortified by the Judgments reported in the cases of Goa

Plast (P) Ltd., Vs. Chico Ursula D' Souza Appeal (Crl.)

1968 of 1996, Anil Sachar & another Vs. M/s.Shree

Nath Spinners P.Ltd 2011 SC, Rajneesh Aggarwal Vs.
                                   16         CC.NO. 17262/2012



Amit J.Bhalla on 4th January, 2001., K.N.Beena Vs.

Muniyappan     and      another   on    18   October,     2001.,

Ramappa S. Vs. Venkataraman on 3 June, 2014.


     17. In the light of the Judgements of the Hon'ble

Supreme Court what are the materials placed on record by

the accused to rebut the presumption is to be seen. It is

not in dispute with regard to acquaintance between the

parties.   Further it is not in dispute with regard to

execution of Ex.P.2 Memorandum of Understanding dated

13.07.2011.   It   is   further   not   in   dispute   that      the

complainant had deposited a sum of RS,1,25,00,000/- in

the name of Janvi Impex Pvt. Ltd. It is not in dispute that

the said amount had been realized. The only contention

urged by the accused that she is nothing to do with the

payments made to the Janvi Impex Pvt. Ltd..             It is her

further contention that the Janvi Impex Pvt. Ltd. had

cheated her as well as complainant and in this regard

criminal proceedings have been initiated against the Janvi

Impex Pvt. Ltd. at Ghana South Africa. It is further

defence of the accused that Ex.P.15 and P.17 impugned
                                17       CC.NO. 17262/2012



cheques had been illegally obtained by the complainant

with the aid of the police and except signature rest of the

contents have not been filled up by the accused.


     18. With regard to issuance of the cheque and

delivery of the cheques it is seriously disputed by the

accused.   On careful perusal of the stand taken by the

accused during the course of the cross examination of the

complainant as well as in her evidence, as rightly pointed

out by the learned counsel for the complainant three

different versions have been set out.    First of all it is

contended that it is suggested to the complainant that

Sanjaynagar Police in the absence of the accused searched

her house and cheques impugned had been taken by them

and subsequently handed over to the complainant. It is

further suggested that in the month of December-2011 the

wife of the complainant went to the house of the accused

and she had taken away cheques. Further it is suggested

that complainant has stolen the cheques in the absence of

the accused.
                                  18      CC.NO. 17262/2012



     19. As rightly contended by the learned counsel

that the complainant, no complaint is lodged by the

accused against the police officials for having taken away

cheques illegally.   No any complaint is filed against the

complainant for having stolen the cheques. No notice has

been issued to the complainant, his wife and police

officials for having taken cheques illegally. Admittedly the

cheques   in   question   have   been   returned   with      an

endorsement "Funds Insufficient". Bank is also not

intimated with regard to the illegal means of taking over

the cheques.   Therefore inconsistent stand taken by the

accused with regard to illegal means by which the cheques

have been obtained creates serious doubt with regard to

the defence set up by the accused.


     20. It is significant to note that the complainant has

filed case against the accused which is registered in

CC.No.3091/2012 before the 4th ACMM Court for the

offence punishable U/s.406, 408, 420 of IPC. In the said

case as per Ex.P.27 accused has filed petition U/s.451 of

Cr.P.C and sought for release of seized property by the
                                 19        CC.NO. 17262/2012



Sanjayanagar police. On careful scrutiny of Ex.P.27 the

various records particularly original certificate of Registrar

of companies of Janvi Impex Pvt. Ltd., certificate of

incorporation   Janvi   Impex    Pvt.   Ltd.,   certificate   of

commencement of the business of Janvi Impex Pvt. Ltd.,

certificate of registration dated 20.04.2010, certificate of

appointment of Auditor by the Registrar of Companies

dated 7.09.2011, copy of declaration of Janvi Impex Pvt.

Ltd. dated 20.04.2010, copy of invoice issued to Raaj

Export, Form A-1 receipt of money transfer Bank of India

to Janvi Impex Pvt. Ltd., 30,000 USD. Two letters issued

by the Janvi Impex Pvt. Ltd. to HFC Bank as to who can

operate Bank account dated 13.09.11 and 2.09.2011, two

cheque books bearing A/c.161632181012 of HFC Bank

along with other records. Further as per Ex.P.22 all the

documents have been returned to the accused with a

direction to produce as and when directed by the Court.


     21. It is further relevant to observe that the

complainant has filed a petition U/s.91 of Cr.PC to

summon the documents from the court of the Hon'ble 4th
                                20        CC.NO. 17262/2012



ACMM, Bengaluru in CC.3091/2012 pertaining to the

Janvi Impex Pvt. Ltd. which documents had been claimed

by the accused during the course of the trial.


     22. Inspite of the direction issued to the accused to

produce the documents the accused did not comply the

order. Therefore, in this regard adverse inference required

to be drawn against the accused for purposely not

producing the documents in spite of the directions. It is

further relevant to observe and as rightly pointed out the

learned counsel for the complainant all the records

pertaining to Janvi Impex Pvt. Ltd. the letterheads,

invoices, rubber stamp and bank statements etc., were in

the possession of the accused when she was arrested from

Ooty by the Sanjayanagar Police. If the accused is no way

connected to the Janvi Impex Pvt. Ltd. and she also

cheated by the said company, in that event why all the

records pertaining to the company is recovered from the

possession of the accused.
                                   21          CC.NO. 17262/2012



     23. As rightly submitted by the learned counsel for

the complainant except the self serving testimony of the

accused there is nothing on record to show that the

accused has initiated criminal proceedings against the

Janvi Impex Pvt. Ltd. at Ghana South Africa. Apart from

that no records to show that scrap material importation is

prohibited. No records to show that Janvi Impex Pvt Ltd.,

collected scrap material so as to export the same to the

complainant.


     24. No doubt, criminal proceedings against the

accused for the offences punishable U/s.406, 408, 420

R/W.Sec.34 of IPC was initiated as per FIR dtd 8.11.2011,

but the cheques have been issued on 3.12.2011 and

20.11.2011     subsequent    to        the   initiation   of      the

prosecution, but this itself is not the ground to arrive at a

conclusion that it is unlikely and improbable that accused

issued the cheques after prosecution being initiated

particularly the accused has failed to explain she along

with the complainant had also cheated by the Janvi Impex

Pvt. Ltd. Another reason for discarding this contention
                                 22       CC.NO. 17262/2012



since admittedly huge amount had been realized by the

company.


     25. No doubt, it is true that accused was earlier

tuiting son of the complainant for daily salary of Rs.500/-,

but the contention that the accused has no capacity to

issue cheques for a huge amount as stated in Ex.P.15 and

P.17 particularly accused has failed to convince the court

that she had no role to play in the mis-appropriation made

by the Janvi Impex Pvt. Ltd.. Since entire records of the so

called Janvi Impex Pvt. Ltd. had been seized from the

custody of the accused.


     26. No doubt, it is true that no Income Tax returns

has been submitted.       Further no permission of RBI is

taken over at the time of investment. But what is relevant

to observe that the amounts had been utilized and in the

absence of satisfactory explanation it is to be held that

these minor lapses on the part of the complainant cannot

be taken as a mode to rebut the presumption.
                                 23        CC.NO. 17262/2012



     27. As rightly submitted by the learned counsel for

the complainant as per Ex.P.22 affidavit submitted before

the 4th ACMM Bengaluru by the accused wherein she has

stated that she is residing in the address stated in the

notice as per Ex.P.26. Therefore when the notice has been

dispatched to the correct and proper addresses it is

deemed to have been served upon the accused. Therefore,

inspite of service of notice, accused did not bother to issue

reply.


     28. No doubt, it is true that as per Ex.P.2 MOU

accused is liable for the loss and profit at the ration of

60:40. But in the instant case it appears that the accused

in the name of Janvi Impex Pvt. Ltd. had mis-appropriated

the funds by not giving proper explanation with regard to

the amounts collected from the complainant.         Therefore

question of appreciating these contention is that only

accused is liable for 40% loss is unsustainable.


     29. Admittedly the complainant had sent a sum of

Rs.1,25,41,892/- and the cheques impugned were issued
                                   24        CC.NO. 17262/2012



as per Ex.P.15 and P.17 for a sum of Rs.1,76,85,695/-.

What is relevant to observe that the said amount was paid

in the year 2011.       The other expenses particularly

travelling and stay expenses at Ghana South Africa is not

included. Further the complainant had lost huge amount

of more than one crore and suffered a set back financially,

therefore   issuance   of   the   cheques    for   a   sum      of

Rs.1,76,85,695/- cannot be ruled out.


     30. The decision relied upon by the learned counsel

for the accused which with regard to making Janvi Impex

Pvt. Ltd. as a necessary party in the complaint reported in

the case of Anitha Hada Vs. Indian Acrylic Ltd 1999 (9)

SC 484 is not applicable to the facts of the present case,

since the existence of Janvi Impex Pvt. Ltd. itself is a

question i.e, not properly answered by the accused.


     31. With regard to the Non submission of Income

Tax returns the decision relied upon by the learned

counsel for the accused reported in the case of Amith

Kumar - Appellant Vs. Yogesh Arora - Respondent
                                25         CC.NO. 17262/2012



2016 (4) AICLR Punjab and Haryana is not applicable to

the facts of the present case.      Since the remittance of

amount is not denied. The only contention with regard to

payments received by the Janvi Impex Pvt. Ltd. and

accused along with the complainant had been cheated has

been held unsustainable during the previous paragraphs.

With regard to the non receipt of the notice, learned

counsel for the accused has relied upon by the Judgment

reported in the case of Amjad Pasha Vs. H.N.Lakshman

2011 Criminal Law Journal 552 is not applicable to the

facts of the present case. Since in this case accused did

not produced any records to show that she was not

residing in the address stated in the notice. Further in the

affidavit submitted before the 4th ACMM Court accused

admits she is residing in the address stated in the notice.

Therefore, non receipt of notice as a ground to dismiss the

complaint is unsustainable.


     32. Learned counsel for the complainant has relied

upon the Judgments reported in the case of Damodhar

S.Prabhu Vs. Syed Babalal Crl. Appeal No.963/2010
                                      26       CC.NO. 17262/2012



and Ajay Bansal Vs. Nirmal Jain (2006) BC 495 with

regard to compensation awarded to the complainant for

causing delay and cheating unnecessarily and sustaining

loss.


    33.    No doubt, the complainant had parted huge

amount of more than 1 crore in the year 2011.                  The

complainant did not get any return for the said amount.

On the contrary, since 2012 the complainant is dragged to

the court proceedings. Accused has issued cheques for a

sum of Rs.1,76,85,695/- and at the time of passing

sentence by awarding compensation to the extent of the

amount stated in the cheques would meet the ends of

justice.


    34.    Therefore    after   overall   examination     of      the

material placed on record by the complainant, it is a fit

case to raise presumption in favour of the complainant.

On the contrary, the material placed on record by the

accused    is   insufficient    to    rebut   the   presumption.
                                    27        CC.NO. 17262/2012



Therefore,     I   answer   the   above   point   No.1    in     the

Affirmative.


     35. Point No.2 : In the result, I proceed to pass the

following:

                                  ORDER

Acting Under Sec.255(2) Cr.P.C., the accused is Convicted for the offence punishable u/s.138 NI Act and sentenced to pay fine amount of Rs.1,78,50,000/- (Rupees One Crore Seventy Eight Lakhs Fifty thousand only.). Out of the said amount, an amount of Rs.1,78,00,000/- (Rupees One Crore Seventy Eight Lakhs only.) shall be paid to the complainant as compensation and balance amount of Rs.50,000/- shall go to State.

In default, accused shall undergo SI for a period of one year.

28 CC.NO. 17262/2012

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 06th day of March 2017.) (V.S.PANDIT), XV Addl. CMM., Bangalore.

ANNEXURE Witnesses examined for the Complainant:-

PW.1 Atul Gala.

Documents marked for the Complainant:-

       Ex.P.1             Authorization
       Ex.P.2             Memorandum of Understanding
       Ex.P.3             Budget Estimate E-mail letter
       Ex.P.4            E-mail letter dated 5.09.2011,
       Ex.P.5             Invoice,
       Ex.P.6             Another E-mail dtd:5.09.2011,
       Ex.P.7 to P.9      Three Bank related documents.
       Ex.P.10             Bank Statement,
       Ex.P.11           Another E-mail Ltr dtd.27.10.11
       Ex.P.12           E-mail letter dtd.7.12.11.
       Ex.P.13           E-mail letter dtd.27.12.11.
       Ex.P.14            One letter.
       Ex.P.15           Original cheque,
       Ex.P.16           Bank endorsement,
       Ex.P.17           original cheque,
       Ex.P.18           Bank endorsement,
       Ex.P.19           Copy of legal notice,

Ex.P.19(a) to c Three Postal receipts.

       Ex.P.20           RPAD Cover,
       Ex.P.21           Notice sent by Speed Pot.
                         29         CC.NO. 17262/2012



    Ex.P.22        In CC.No.309/12 Accused
                   Affidavit.

Ex.P.23 & 24 FIR and Complaint. Ex.P.25 Head of the Charge sheets.

    Ex.P.26        Complaint.
    Ex.P.27        Certified copy of the Interim
                   Order.
    Ex.P.28        Certified copy of the Order.

Witnesses examined For Defence:-

DW.1 M.D.Devakumari.

Documents marked for Defence:-

Ex.D.1 Complaint given to the Lokayuktha Ex.D.2 Complaint given to the Human Rights Commission.
XV Addl.CMM., Bangalore.
30 CC.NO. 17262/2012
06.03.2017 (Order typed vide separate sheet) ORDER Acting Under Sec.255(2) Cr.P.C., the accused is Convicted for the offence punishable u/s.138 NI Act and sentenced to pay fine amount of Rs.1,78,50,000/-(Rupees One Crore Seventy Eight Lakhs Fifty thousand only.). Out of the said amount, an amount of Rs.1,78,00,000/- (Rupees One Crore Seventy Eight Lakhs only.) shall be paid to the complainant as compensation and balance amount of Rs.50,000/- shall go to State.

In default, accused shall undergo SI for a period of one year.

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

(V.S.PANDIT), XV ACMM., Bangalore.

31 CC.NO. 17262/2012