Sri S Madhava Reddy vs Smt Mangamma on 20 June, 2011

[Cites 10, Cited by 1]

Karnataka High Court

Sri S Madhava Reddy vs Smt Mangamma on 20 June, 2011

Bench: N.Ananda

IN THE HXGS CQUR'? <3? KARm::'A$s:A AT   .

Dz3I§'EB TIES THE 2&3" §AY 0;?' J{j'N.E.:;'2i§:1~~Z£ 
PRESEN:-J  .  .. .

THE HSNBLE MR.JI;';Sff'i<f:E V53: A1:'§A'  

Cr1.A.No.2€3;'20{)7 C;/W (I1ri.A.264,!'£i_{)G?u & Cri;A,1'~$e.28§§;'2007
Cr}.A.No.288g2OG'? --  a    
BETWEEN:

Sri.S.Madhava Ready

S / Q Narayana Reiidy

Aged abmzt 40 Years V 1
R,/at No.55, N.T;i.Layt_3:11: 
R.M.V. 21301 Stage   _ . . ..
Bhoopasandrfa §\:§;a;it1"£"<::§_._<i  
Bangalore - 94;, * _  '   .. " 
{By Sri.Bg£;?%;§/{adhusi:i:§:aar:--,. Egd_v0c3't;e}.... 

. Appellant

AND:  . .
Smt.Mang:a.m:na --

W/0 B.Vema:'edCiy 
Major, Age r10'é..k::'0vs11'._ V
R/at  Main, 69%? Crass '

 & M.C._:'<5'::EX?¢n$i0ﬁ   %%%%% <4 .
 "B? Bi'0ck;'ADa:%a1j1age:e. ..,Respende:1{
W 2  S::.£'i,_K;$i{id'es_hwara, Advocate}

'_§z_+:;;':;.-.:':§o;2'::&'§:%;vz3w2*_¢;_'",'gg::_*j,j"'

S:i.K;--K:*:$£:n;: 

._ ' g S/0 Eats; KL'Si3/.b§T)&1'i.5{id}f
'  Eéged at:4<:méi 3;} 'ifears
1?2;'.:«,>;2i"E.'»f:x 198, E§.z%.S.Lay0L:£
" j 2% Sage, IE1 Crggg
_V  Bi§;IT}g8.1%§€'.  Vﬁgpeéiani
M  _ (8:32 S§;:,Es?§,§£,§i«ia{iE1z:s::§%:a:':, %.{§'§f8€.'€:ii€}



I»)

AND:

Sm£.Ma:1gamm2:

Wfa B.V€mare<§dy

Major: Age net known

R/at 10% Main, 6": Crass

?'s'§.C.C.E;X{€I1Si0f1   ._

'B' Smack; Davanagere. :  .  :%%sp¢$r;<1e1j:£j"V 

{By Sri.N.Ei.Sidd»3sh\vara§ AdV<:>Cat€}

cr:.A.No.265_,{20o7
_B_§'1__1R£EJ51____i:~f.;

Sri.Naraya11a Reciciy

S/0 late Nagi Raddy

Aged abeut 63 Years

R/at No.55, N.T;I.Layout

R.M.\/'. 296 Stage .
Bhoopasandra  Road   _ 

Banga1c:»:*e~§-<1. _    V   V'    Appellant

(By Sri.M.N.Madi:.géﬁd1§a't1§.:A§i§2aca£;é}  M .

 . . ' . ..  V

Sri, B.V€~fna Reddfy

S/0 Gui':uva_ Réi'Ci C§§?',  ' M

Aged about 5?' Yeafssﬁ _ 
R/at 1G=?h Ixiljainﬁ Béhvéjrcss *-
M.C.CaExter'1s§0:;.V 3 "

'B' Block, Davalwz?/%=e..'--   " ...R€s1€><>ndent
'V V'  {By N_. K.Si.<ides§i§?é::"a; Pxcivocate}

 "vTI'E'1:§sé :é1'pff§€a§S filed under section 3'?8{4} Cr.P.C :0 set aside

 'EE§egiudg1%.1ént a.ﬁd,-vbrder af acquittal dated 18.12.2806 passed by

 '=~X::':1'1 ~A<'::*v::M 3: xx ASCJ', Bangalore City in
C.C;--3E0514v~29_3;*2QO4§ 14:294/ 2804 and 141295,' 2004, acqnzitiing
the respéncientsfaccused fer an gffence punishabie under section

 38 sf ?\IV,§.;%',.Ci,

" I  Thése appeais coming on fer {ma} Ezearmg this day, Amanda,

" ' --  ;,ieE':_vsz*e€i {he §«3Ek3:z:1:":;,,: ~



C4»)

JUDGMENT

The following q'£.,1€S'Ei01"1S haxjié bééﬁii, i;:°;i'<?'::*;*t::é.:

Bench pursuant is iiia erder tiaied 1i2--iA§}"iV:2O1{3.v§*::2i<§ie«'b}%:':ii"i€ ieamed Single JL1dg€:~ E] "Whether the definition (jf...'.'E"A)"2':11f1f§':€ifi'" uﬂ('i'G'¥"._HS§iC:ﬁ0n 3 if tha N.I.Ac:i would 35Ciédiiiwijasoperaiixre Society carryiiig an banking :_b1ijsiIiiés_s._:V'iii;'V~.i%;:1r1traV*enii0n of Séction 5{»3.:{jfv.ihe V' "

ii) Wheih¢:?_.:{an::1iii3}i_stzjiimérii sif4;}1e2.c1"',:ié""€iheque' drawri by 3.

persoﬂ him in a Credit (10,.

0psraf;i§*¢. 'céirfyiag. ion Banking business (ifx>I1f;}fa1"\A,'Vf "t{isVﬁhi:'npfG&ii3§.Q11S-' of Section 56 of the B.R.ACt cai; ieri:i,§.:'c'iA:.ijf;i:~: g'3*~neque' issued on an account held by hifit. wviih as Czccurring in Saction 138 cf . . the .N.1.A§::?.i" V _ V stats the facigi order/decisien giving raise iii» under reference as f:}1iQWing:--

T1":s;<':i v23;pp€iianis had initiated complainis agairisi VL'."resp0nd{:*f1i;s alleging an czfferice punishable unciei" seciien ihe Nsgeiiiabie insirumenig Am? 1881 [far short; ...'f§.§:i.3§C§,'}¢ Bafare iirié ériai marig ihé: E"€S§3G§}Ci€§}iS rais;:%«::% , 1": ,,,., /».

f§'~a,/' 'W/"'xM€,.;M /'*'v-«.~._,'~ $ objections {hat dishenor ef Cheques draw:1__p'f5§,§. e¥n~T Srishaﬂa Credit Cepperauve $C1eietj§AA{V(ib':9ea12?e'e) éo--f_1i0:_patVifé1ct'V« an offence pLmish3.b£e under eeeiionvéiﬁgef {he.b'{$§p.L}xe€: * drawee. a Credit ce~0pe1'ative "::g:$€:--iety 15* I103 Banker as defined under seeizie-nv 33._of N;'I".}Aei' bankingvbusizless carried on by the drawee ie 1:: are-:itr;a1VIeIi:i.e:1 the previsions efB.R.Aet, 1949,- =_ v_ A :36 The 1eac<1je*d trial glgdgep aeeepiiigg the contentions raised by ree§pe_:*;cie11f;;/aee--1,1S'eeII_ae§;ui£t;ec1 the accused and diSH1iSS€(1""ﬂi1_§§";.COIfi}?}aifiiSL'-. T'he"ree:--fEer, the instant appeals were fiféﬁ 1:31;? _'before the trial Court.

4. Vleameﬁ;eir1g§e<JVudge heard the appeals and held fiirzat dee'i:~3je11V.:9ene:-ereei by the learned single Judge of '«-this-.e.cAeu..{=: in UpencVi%:i'AKumar Vs. Don Fzinanee Cerporation, IQXR 43.9, wherein it is heid, that eredii e0~'Qperat§ve":;;3eiety is aiee a banker as defined unéer section of the vN;;.'LAet and diehemeur of 3 eheque érawn on 3 credit V~:}:'mVgeLp'e1"ati\:e eeeiety, subject ta fulfﬁlrneni. of ether Cenéiiiens ' weulé S(]U;€1f'€'§§£ ateireei; as effenee pzgniehabie under seeiéen Ex» 3: g,/~«.W i ':.g-M 1.38 of the N.I.Aci has not Laid dawn the correct pesiiign of iaw far, the learnad single Judge in Upendra has met Cansidered the reievani p3.'C}'v'iSi€}:3S C%{_."'£,:?}€ ~ Regulaiien Act; 1949 (for shcwt, 'E3.nR,ACi')_~'ii?h':"C?1':V.ﬁf0hibié;$V V banking business by Credit c0»0pefa{iv,é' the Zearnesd single Judge by ciattati. _:V<7:f-férréd j' the questicns stated supra Divisian Bench. 3 A A A j

5. We hays hea:d.. S:ri learned caunsei for A:f§?i'K'.'SVi;aid€sWara, iearned Caunsei foia' by order dated '..--HfavGenera£ Manager of ths R6S€:I'V'€v B§VL*'1'IikVOf also perused the affidavits filed on behalf af the Rf':séfx}e Bank of India.

'learneci single Judge in the case of Upendra ..Vy»V;')::;fV:vV'Z5'ir2a:z2c£% Garporatian, raparéeci in {LR 200§ 'w§££Ee interpretiag the definitiagi of "Vbanke:"' as ' aiqaﬁnecé. uridsér secxiiari 3 of the NLACE has heiﬁz» in {his €'.G}f1i€Xf',, it is :"€k:<.:anf; ia aaie the: :§€fin:'i;i<>1: 0%' "Eiank€:r" as fauna in Seiééiazx 3 6 of the Nizgoiiabie instruriieiizis Act. The "Banks? is defiriézfi as under:

Section 3: "Banker - Banker i2:1CiudEt$ air}; person acting as 2: Banker and ,_2_1:1y _1:?C}éi"a<3.f§7icé' savings bank. "

Thus, the SCOp€."i3f.'_"Baf1K_€!1:" ﬁfifi Negetiabie Insirumentg is s}:s._ _Wii:ié éinc:i enhanced that it includes-'a:3,3}'*péi*:3Qn acting a Banker. In fact, it. E"L1S_()",iH€j>IL?4Ci€$:vv\'fh€~_pC)Si office savings Bank. Barilgifig, rieeﬁi riot fiéigessariiy be a busineS.*g~.;u'i1 wiiih a ;:3::"0fi.i;A"i'£iQiii\v7.<=:if'As a mattsr af facih-V;;ﬁ....¢v:i'i1ifiiona,i;$} concept. It Canné'i«i..VbéV;jsai{ﬁi btlriéiii' which Carry on biié§ii§é:g$:jvi,;;oi'V§§x}i:1ii'a.::'pr0fii'VVfhv0tive, but with the iiigf/fid'ei1ts _:b.usines$ of Banking is asso'eiaied,"'--ar'é n.Q't*--._ Banks. What makes a ;§~1€:rson'4"a._.VBankef"-isvnoi What he daes with the ._' '71nEr3_i'1<::}f of Whic--h----he Qbiains the use by ianding it _V a{'i'H'1€?i.'é:3: ar by invezsiing it, but by the terms j£1p.fj1i._bwI5i'i-<:Ei he obtains deposits of fI1€}fi€}>' frsm with: Bziﬁjiiéing custamers. if it was {he inieniieii

2 égfijhhéi iegisiature is résirici the meaning of AA , X. Béiiiiier as pa' Banking' Reguiatien Act, 23. specific 'if§3FQViSiQIi wcauiﬁ have been made in She Nsgetiabié In$im,m€ni:s A53: ta de:-firie {he waré

8. in the decision rc2p<:srt€~e:i in 1970 Kei*aia..~«L_§iiy.':fiﬁ:é$..& 53?, the ieaimed Judge heiid that banking iii}: _ V' recent iimes is an avoiuiianary C0i'i%:€spifa:1:r.pmiiihvmaiivé iél not riecesaarily th€ requi$iie 0f1br;i:iikii"1g i:iiSini3ss:f"~in"-- Uperidra Kumafs case, thee 1eai':--:1uéiiibsingle'-«iucigé;ofihié court has taken similar view.

9. The Suprenig Ease of Tata Consultancy ' 'o_f---ii;1.P., reported in (2005) 1 inclusive definition has -. * 1 & i' "in«::iude$" is used in an ii'::_eri*pV:eiaii€;ii Ciiéi'i;xs;e, it must be construed as :"GOi11pfi%fi~€i1diIig;" .'f10'L'.: only such things as they i".":'S§:gi"1i£§v'AaCCi$f€iii1gVfO their nature and import but i V' * alga.ii'1ii{5%se___iihings which the iritsérpriataiion Clause they shaii iI1Chld€. [See Scientific ' Eng_%."ii;:$use {P} Ltd V. CIT 2%"

" iii}? iiiéi éecisian 1'f3§)Gi'i€Ci in AIR E9397 SC 628 {in ihe 'case of"£§,V.Muthu Vs. Angamuthu Animal}, {fie 3UpI'€fF1€:

_ ' «:";"gi:z~i' iiaa h€i§:~ 3! :

;

Whﬂe interpreting .2: definition, {G be berhe in mind that, the ihterp:ﬁe€--af,h§f§ :"

places on it sheuid not eniy be not .

the context; it shouid also hev'Js{ieh'3.s'*«3&*Quh§"V the achievement 0f the purpeee to be served by the COI1'T£'.*3a_§¥;:1jCv'C1C!151:!'K;€;{it.i.§§}V wouid defeat or was 1i1§eh.f'e»t.}:$h':iefeaf."the*;:§L::*;;$<§se of the Act has to b'e..igr1Qred Vfzzyt a<:cae'p"LedA;";

11. We have e0:1_sifie1~ed i.1".E:16\.{:':L1j.f'.'QYOVISIODS 0f the Banking Regulation Aet,__l_§49 The BR. Act does not ":Ba1€1kee";"he\}}ever:«the words "bank", "banker", "E}2lI1}iiI},g'$ €33" f'hé;nki:1g' c€:',gm'pany" are used under section ' "the . . R1 ' »

12. E3ef<::re s'dxre:t1nV§'ﬁ.0' these words used under section 7 Qi";jB.R. AC'L..V_V_ \%§re Cieai with the question as to the "pe;"rhissih;ii§}f..e£' reading' these words inte {he provisions of "N.}f;.[A-rjii,'Vvii-::ei:.V.T':s~"'a self contained act? wherein a "har1ker" is deh:;__ed ;:~ne':e'":--' Aseetion 3.

V " H': a deeisiim. reperied in (2003) I1 SCC 65 {in the e:1s'e"Aef Apex Caoperative Bank cf Urban 533.123: sf f":

E;-EV ) s:' £fs',»/A3//,,'%'~' Ed'/aw «Mg 3/gﬂwy ) / I0 Maharashtra 82. Goa Ltd. Vs. Maharashtra V.-State Cooperative Bank Ltd. and others and matter), ihé Szzpreme Ceurt has had V' Qccurring in a statuté Cannot bii b0.rm*29¢d whiié"i'1i1'erj§r:::;ng, cieﬁnitian occurring in other sté;t{utL%'S ' :L1I1K'i'€S'i~'3 statutes; deal with cognate subjclcfﬂi The Negotiable InsLrum¢1_r_1ﬁfS..VAc:f {S8} wasV § brought into force on O9.12.1V88V1'*«, {E1sA §:f€E2i_I'1)i::;f't3 §>fiW'hiCh reads thus:~ "Whereas it ' ¢xp.=:;1:¢n};"~ éiéfine and amend t:1*;€i'T€';2§:,i>L re1;at,1'r_:g~ {O mates, bills of €Xc}ia;;.ige;$iii{;i__ V 145 {fiat the word "Banker" is not deﬁ{1€d_ 'AC5. Theugh the words "banking"

and "ba11 1d.ng in section '3' of the BR. Act. The ffggLdS ihusr " is expsdieni to Cansolidaie V " " 'a1*:£:¥,_:é::ﬁ&:;j§Ci--.th€ law relating to banking." 15s,"§?/\/%é£'.~".t;1:c€1'V€ raferreﬁ 'Ea préamble <:z§"N.E§A<:1:' 1881 S0 "-w._ 'aIs0 préafﬁbie of 8.11 Act, 1949 to hoid that {E1636 acts were V 'F1€3'J.',_f3Y!}.'§i1£?'[,tE'€% {.9 E1{':hi€'v'€ a cognate subjzicz, '<!\ M§<'

15. Therefore, 'the word "banker" defined u11de'rV.S'ee':i.e;1 3 of the N.I.A«::t earmot he read as banker earr§3ingA e::$f--r V' busirrese of banking, witheut e0ntra,ve::_ir1g {he of V BR. Act. The Eeamed singie Judgelkjf ';e0'?m_'t"'iri Kumafs case has held that waS'v-the,ir:eierr£i_er1,ef3 the 2 L' Iegisiature is restrict the rneanirigv:e§7.f'Barri}xer';as viper BR. Act, a specific grovisierf'we'a1d;_'Prayer,'been made in the Negetiabie Instruments 'A.eii: i0 dv.efi:1f1e".«fhe'eégerd "Banker" as any person Act".

17'. 111:' a d_eeisie;} repjertec_i"'fnV"{20V{}8} 6 SCC 456 (in the case or~B.V§gz§d"1'15shiv'c;ppa " iifanda Bezziappa), the Suprerriét Cetxrt " ;

_"'u1"3;V 0f the Act was enacted to p'ur2:ish.V Vunscrupulous pereens who 'e_ :pu;:*po:*i;ed te> :iii'ée}1arge their liability by issuing & V' " --. Fwithout reaily intending to :20 so. which " .___araa«V%j1era?§1':Vetraied by the fact that there was no sa_f{i~e'iej:*1i,T balance in the aeceun': to discharge :Th:e".%_iabﬂity. Apart from eivﬂ liabiiity, a erirrzirxai " _Eia?i§i1if;y was irnpesed on such ur1s<:ru§u1eus

--=;:ira\x;ers a? efrzeques. Trze preseeraierr heweverg was made eubjee: 11:} s::eri/air: eerrditiens. 'gfith a f E2 View ta avsid unnecessary prasecutian sf a:r1_ hanest drawar ca? a cheque; er :0 given eppsriunity ta the drawer :5: make amend$,.._tZ:é:"L:"'T. proviso to Sectisrz Z38 prcsviées thai":"afi:é}f ciishoneur 9f the cheque, thﬁ payee GI' .é;E1"e° cf the cheque in due course mus?' g'1:ré'_Ta '£¥:*i:ie,~::

notice to the drawar is make §Qei;2_ the §af,%'II1€'f1i. VV 3 The drawer is given 15>(ILL'}.7.S' tiriz-<§f1*s:>n:1T' ..::ia:§_3'x9{. receipt of notice is make f, 1*';{:_ oigiy if he fails 1:0 m2{§s:r3;_ th«é.W;)éi§3}1%11€%iii' hﬁ ba prasecuteci. The ef§bje_t€: f§11L*é3x::so seeks to achieve i.-:~av quiff3"'oE}\§fiU1i§:,«A'1_Ii that on account 2_"<3'£' ' " . : cheque may be Vf{%';Ct- ' that there is sf;;.ffi.ci:=§i:t_V"b§:§3:::1ce--._iiﬁﬁhé acqoiint fram which the simeurif . 1:: such a. case: if the d1;axx}e'r 'sf is prosecuted without r1<:t'£:i(:'€--..._V ii» WC:~uki._ sresfuli in great injustice and Eia:'.r.ish3ip"' *::3_ ér1 1§0:1€st drawer. (3116 can also céﬁaeixzfz «sf cases where a Wei}-intenticened V have inadvertently missed to make hM'neée:§;€af3zVV3;:*rangem€:1:s for reasons beyond his c<:z;:':ii:'{}E'§ even theugh hi': genuinely imezgéeci is) hgﬁaur the cheque airawn by him' Tbs law AA «treats such lapses inéuceﬁ by ifzadvxsriarzge 91* "jriagiigsnce {:3 13% garéanabia prgviéssj the draws: afief rietice makes 33363513 anﬁ pays ihé amount within the prescribed period. It is t'0zfr"

this reason that clause {0} of proviso te Seetiein 138 prnvides that the section shatt '7' uniess the drawer of the cheque fails.

the payment within 15 days gsfihe' «rec-eipgt said notice. To repeat, the }i3"3ie*.?ie(J' tfnestanlt protect honest d1'ax&*ers.*eLri:.ese ehe_qnes r;.:':Véi'3?A.V;t193_je been dishonoured for the'V"f:?niitt Of otnere, tigho may have genninely &5.?~;fa'nted 3:9 futltfii'-A their promise but gm'v.%P:'éC0t1f1'E3';. {)f; "}iﬁ3,t3I\5€I"j[€1'1C€ or negligence failed H n_tqf ' nxéikev ' i_ ~-- necessary arrangen1e'tn_:g. fen the the cheque.

The 1.. rneant to protect unsCrup1'ﬁr31'i;§te ~ inever intended to hlenezifte e§1eqs.;ee.ejissueetﬂby them, it being a p:f:1t"t: of tn'eirt . operand: to Cheat unsuepteevting.

; 'i8,A.in A;2§f0:;esté.ted decision, the Supreme Court has ""§;:eIV('i" "aveieé.«_sett1eetHtén2v in interpreting a statute, the eeurt ~.ffv1Ll__St ;adf::~p:" t§jeVVe0nstruction which suppresses the mischief anACE...4aCiva;nee's the 1'eme&}:, which is also knewn as the rate of V'~».pu:rpeé.i:2f_e3 construction er' mischief ruie {Vide 1(i:':384} '?'6 ER 14

19. We notice from the N.E.Aet, in Chapte_ﬁ'_:AXI'If.V_'Q§ _ N.I.Aet, there are special rules at" evicienee erg:;m.ei'a,ied:und:%r" 'V seeiians 118 is 122 of the Aet.:;_We:.,.

reproduce section }20 of whi:jh7. ciiyée:

bearing on the questiens under 2 l

20. Section 120 of the N.IV.AA-€f_Afeads' thus? "120. Estoﬁpel. 3g3i§11S,t'46?§i?:§Afiﬂg original validity of of a prorniss0;7y'«.:1t}*:e, iangfl a bill 0f exchar;ge""'Qr 1'10;;'ceeptOr 0f a bill of excharige Aiheiﬁdfawer shall, in a due course, be pertmitﬁed of the instrument as 0figj_'nae1v1yVV1néi'dVe

21. In \:ie*2s; ofvthe f3r0{risions contained in eection 120 of V. Vfijxe i§1jawer«éi'i"'fﬁe cheque {one as in the instant case) ,'{.33.V}i£,"£_'l.VCV}i: to deny the validity 0f the cheque as it is o:'igi:§a11jg_ or made in ether Wards, the drawer of 'r__eheque esteppeé from eentenéing t,ha: the eirawee of '~.ﬂ:_!i:eque £3 nei a banker or eirawee is in banking business, ' eeg:%:ra:re::i:3g the pmvisie:>:1s sf BR. Aei.

{b} it is a Co~0peratiVe Bank and hczids a lieence issued in that behalf by the Reserve subject {:3 such conditions. if any, Reserve Bank may deem fit hi) i:rnpe:5e:" "-._ V 25%. At this juncture, it is nece?3.sa::?§{t~d N023 of 1955, BR. Act, 1949g%¢a,g amendac: by A:£§.::-c-,.-du--£::ng = "

Part V, making all the prQvisi0n$__:Vﬁ'»B.R_,_VAct. 'applicaféle to c0~ Qperative societies? ur1ﬁié:--r V:7sec{iL01%1_' {eczri}, the "primary credit society" is definedva-s--:».

"{c:CVi} s_Q}:jveviy;'VV"1ﬁeans 3. CO- operaifve{F';fsE>veie1;y;"'~:e/:".'je{h'e{: a primary agi'iCL!.}.{ﬁI?e%I. ;52fff3'C71i'€"S3V>€)€i'€'L'};"?' V ' Z ._ -'abject or principal " is the transaction " of 'ijuesiness;

{QR {h.€VPa'i;i up share capitai and reserves of which are less than one Iakh of _ ifglpeesg and VA vihe bye~Eaws of which do not permit ' aémissian of argy other CO~C:p€:'aliV€ society as a member:

PROVIDED that {hie stﬁyelause eiause Shed} net, apply {:3 the admieséen of 3 Ce» operaéive Bank as a member by teaser: 5;?

ké The penal CO1"1S€qL1€I1C€S are £3»:)uI1b(_:'L in é€:ci;iQ:1._«3§t:'3.'Qf Vt§;A1_<:7f BR 17 Such C0~0p6:rat:v€ Bank subscribing :0 the Share capitai of such c0--0p€rativ€ $(3.C1'€:i1_'§{:' -":~ Gut. of funds pr<:>vid€d by the.-.4 :"S£3x¥ﬂ§ "

(}0V€rr1m€nt far ihe purpgse."

' Act. The relevant provisiogz V12: séctibzn. 46%;} tHu§':~~ V' _':'t0::f;inu€$. [ 533(4) If any other pr(')Vir:3:.i'Gn of contravened er if argy defauﬁ irfgé I {1} «::0rnp1y:ing any czf this Act 0: 0f a:1yVVQ_;':CEe:;;*,. ifVLz'{.Ve 0'1~< <.i1ii5_'€_~f:.ff<3r1 made 01'_ cg'-hjditioriz' or

(ii) ,1:.err12s:l::~f, 0,1'9'{h€: Qbligation VS'ahcvf§éhed undar sub~ """ 'se§t:orf3é}j?} c§f"':§é'ct1oﬁ_"V4'5V,'v any peVfS$§:i:.,:4sL1 :§i';__:f5efsi>n shaﬁ bee punishable xvithufirua wfhlcii'xnégxreﬁctend to 7'[fifty thousand _r11pees " i':.2v..:c:e"v.t}*ié: amount invelved in such ' }"ifC{i}i#3£i'«'3gV€31'1ﬁi31';._Q1TVd€fau}i when: such amount is A qgieiniifiabie, Whichever is mom, and where a or defauh is a Cantinuing one?

'Vsviih eiI__fizrther fine: which may extend is Ewe {£1/1'i3:;S.é§":.1ci arm five hundred rupees far every day, duﬁng which the cantraventien 91* default /' .

25. Section 47' 0? the BR. Act, which deals Wiﬁj: the cognizance ef effences reads thus:« T T ":17. Cognizance sf offences Ne court shall iake <:eg:11'zan§:e~~0f"~.,a:';y ' offence punishable under %[Vsu}:§'%seeii.er1-I' section BGAA er} seetmfrl ., u£3t,,r1" "

eompiaint in writing m2{de.._by ..efTicer["ef;§{ihe"

Reserve Bank or, as 'the National BankL generailyer'Ae_pee'ia11y? aﬁ€h'0ri7eed in writing in this Ree/e1fVe Bank or, as the ease may.1:;§e;~,theANat'i5:1éii:--.B:ink}, and 4[n0 Cong': tﬁang .'e§--:.E»ie:_1f{f§po1itan or a Judieigli ;th_e class or any ceurt superiee: ti-'zefijetoj s}*:alI'--fr*;;. an}? zéuch effence.

"Ike -;3i;xIzef"T:UfA Vﬁeéexjve Bank to impose penalty is provided uitdervsetiidn of ER. Act. However, section 4t?A{'5j"s:a§es tﬁa?:VV:f1O ﬁroeeeding for imposition of penalty 'be: i'::AiLiaf,e:'i Where any eompiaint has been filed against é:';'1y"-T:}e.nKiﬁg,_eei{:"3§5any in any eouré fer the eerztravention or V VV _ elefauii O.{: {:l'1'?"'é1&tLif€ referred 'gee in subeeeiien {3} or as the & ease Lmay subwseetien {4} of section 46 0:" BR. Act. 22 to Fig members itself I'€pI'€'S€I11:S as .22 the pubiic even if it: is acting in c0ntravc:réV?;i.ti:i»5~fgf: --1- V sectmn 58 of BR. Act, 'ahé €:h€«.:;u€_ r::ustc:n1er of the c0»apera§iv'éV SQCi€'£}--' as drawee sheuld bit: trééaééd for the purposes cf sécﬁion ef Instrurnents Act and theaﬁuociety rnagr' as banker undmf S€Ci:iQ17?V: '3. thé "i\§<3gg<3t.i'.§2:bIe Instruments _ '. T. _

26. That in rghéé' :i§:<:_i,Si0r1 of the Iea1*n€d.V5Ei:1f1g1e J }'iZ;L;rnar vs' D01':

Finegxﬁ: ..§ep.©1'iC€i iVfi"'25§IR 2009 Kant 184§:;2,§3®ﬁ§g_cf""' IL}; "2009 Kant. 439 1'éfii"t:s§§:::t leg-ié1"'pE)siti0n an definition '<>'f the in»'Ne;§bi.iabie Instruments Act." Tr:§2r;3ff<3re,._xi%@ hd1d«__ih=:>;'L in a complaint initiated under sectian N..f§.A{;'?;, {ﬁe drawer of a cheque cannet be 'V ' _ heyéifd 5:0 S31}: thai 'éhéqije daes not fall within the dafiniiion cvf ':}i_éqz1}é"«;;{n»Ei€;jVs«:§cti<:zn 6 of the N.I.Acf; and <::re<:iit <:o«0pez'at£ve s'e;:iE$;§; Liihfich chequs was drawn is not a "bar1}«:er" undér $ecti<nj1' i3 of N.§.A<::;. The drawer cf chssque wii:h<::u'{. fuffiiﬁng }i*:ié"r;b1igat:ons arising 9:11: cf an észstrurzzerzi: drawr: by him' ::an:3r;:i: £35 pe:'::1:i:i,£:<5£ :19 {',€3E'}§€E1Ci iifiai; baﬁkéi' 33:1 whi{:E:

.2, 'Z & I ,»»* 2' ix.) LA

31. In View of "she provieione Contained in -lqf ' _ the BR. Act; a eredii; eo--0perz3.tive seeieiy 21s"a:ie:fiine'ci Lznciei' seetien 5 {1){<:<:vi} of the BR. Aei:=.eann<.ii§iv business until it is granted bee-nee inbiefms ctfseetion $52 the BR. Act, 1949 0:' neiified b§'Rese_we India.

32. The consequences ofe--e--a17f3ringLAon baiiviiiingbusiness by a credit ee--0peratiVe'a eb'iaini11g licence as required under éseciion :2V2"€:>f attract penal consequeneeeve_n1iin;i.e1"a.ie_ei 46(4) of the BR.

Act? 19/~_L9T.V been filed against a banking -'of contravention er default referrediiungeierv section 46 of the Act, there Canned be iinpqeitien 'bf penalty under section 47A ef BR.

.....

'3J3';~...in %J§e'iv (if the above discussion we answer the quesiiens iiifsgier reference as foliewingz» E. be definition of ""banker" under N.I.Aei Weuid. ineiude ereeiit ee»eperatiVe SOCiEt'E}7 earrying en banking 'mzeineee in ee::>ni:*aven{,ien ei" eeeiien 22 e5 {fie E33. Aeéi

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