Bangalore District Court
Adobe Metal Products vs System Infotech UnitIi on 6 September, 2021
IN THE COURT OF XXXVIII ADDL.CHIEF METROPPOLITAN
MAGISTRATE, BENGALULRU
Present : Sri. P. Shivaraj,
B.Com. LL.B.
XXXVIII A.C.M.M Bengaluru
Dated this the 06th day of September2021
C.C.NO: 13941/2020
COMPLAINANT: Adobe Metal Products,
R/by it's Managing Partner,
#407 & 408, 5th Main Road,
Byraveshwara Industrial Estates,
Hegganahalli, Peenya Iind Stage,
Bengaluru91.
(By Keshava Murthy, Chethan.M,Advocates)
//VS//
[
ACCUSED: System InfoTech UnitII
R/by it's Managing Director,
#165, 10th Main, 3rd Phase,
Peenya Industrial Area,
Bengaluru58.
[By Narayana & SH Lokesh Advocates]
Offence U/s/ 138 of N.I Act of 1881
Plea of accused Pleaded not guilty
Final Order Accused is convicted
Date of judgment 06092021
2 C.C.No. 13941/2020
JUDGEMENT
The Managing Partner of complainant firm has filed the private complainant U/s 200 of Cr.P.C. alleging that, accused has committed the offence punishable under section 138 of Negotiable Instrument Act, 1881.
2. Complainant case is as follows:
The Accused is the Managing director of System Info Tech UnitII, Bengaluru. He is the regular customer of the complainant since three years. Accused used to purchase the goods/materials from the complainant firm, for his business purpose, on many dates and under various invoices (stated in para 3 of complaint at page 2,3) Accused failed to pay the invoices amount
3. Complainant alleged that, on verification of the accused account, it is found that, accused is due to pay Rs.16,11,447.17/ to the complainant.
4. In order to discharge the aforesaid liability accused issued cheque in favour of the complainant company bearing No.032767 dt:05.07.2020 for Rs.16,11,446/ which is drawn on Dena Bank, Bengaluru. As per the instructions of the accused, complainant presented the aforesaid cheque for encashment through its banker. The aforesaid cheque was 3 C.C.No. 13941/2020 returned dishonoured, with an endorsement "Exceeds Arrangement" in the account of accused, to that effect complainant has received the cheque return memo from his banker on 09.07.2020 & on18.08.2020 Complainant informed the aforesaid fact to the accused and he has issued legal notice to the accused on 03.09.2020 with a request and demand to repay the cheque amount. The said notice served to accused. Further, accused has failed to repay the cheque amount. Complainant alleged that, accused has intentionally not maintained the sufficient amount in his account to honor the cheque. In as much, accused has committed the offence punishable under section 138 of N.I.Act. On the aforesaid allegations, the complainant has approached this court and prays this court to punish the accused and to award compensation to him.
5. After registering the case, Cognizance taken of the offence punishable U/s 138 of N.I.Act and recorded the sworn statement of the complainant. On finding primafacie case, process was issued to the accused.
6. After service of the summons to the accused, he appeared before this court through his counsel, and he got released on bail. In compliance with provision of section of 4 C.C.No. 13941/2020 207 of Cr.P.C. papers of the prosecution were supplied to the accused. The substance of the accusation is readout to accused, in the language known to him, he pledged not guilty and submit that he is having defense to make.
7. The Sworn statement affidavit filed by the Authorized person of the complainant Firm (PW1), is treated as his evidence, PW1, has reiterated the complaint averments in his affidavit and has already tendered 29 documents which are at Ex.P1to29.
8. Later, when the case is set down for cross of PW1, that is on 03.09.2021 accused has voluntarily compromised the matter with the complainant and they have filed joint memo, reporting their settlement, stating that, accused has paid Rs.3,00,000/ to the complainant on 12.10.2020 and they have settled the matter for Rs.13,11,446. Out of the settled amount accused paid Rs.2,11,466/ to the complainant by way of DD in open court on 3.09.2021 and accused has agreed to pay the balance amount as per the repayment schedule stated in the memo and they prays this court to pass the judgment as per their settlement, so that it will have binding force on them. Since the alleged offence is 5 C.C.No. 13941/2020 compoundable in nature, the reported compromise is taken on record.
9. I have heard the arguments and perused the materials available on record.
10. The following points that arise for my determination.
1) Whether the complainant and accused have voluntarily settled the cheque amount as per the terms and conditions of their Joint Memo.?
2) What Order?
11. After carefully going through the materials available on record and taking into consideration of facts and circumstances of the case, my finding to the above points are as follows:
Point No.1: In the affirmative
Point No.2: As per final order, for the following:
REASONS
12. Point No.1: Complainant firm filed the complaint, through its authorized person alleging that, accused is the Managing director of System Info Tech UnitII, Bengaluru. He is the regular customer of the complainant since three years.
6 C.C.No. 13941/2020Accused used to purchase the goods/materials from the complainant, for his business purpose, on many dates and under various invoices. (stated in para 3 of complaint at page 2,3 ) Accused failed to pay the invoices amount.
In spite of repeated demand made by the complainant to repay the pending invoices amount, accused has issued Cheque for Rs.16,11,446/ which is drawn on Dena Bank, Bengaluru. As per the instructions, when the cheque is presented by the complainant for encashment, it was returned dishonored. Further complainant alleged that, he has complied all the ingredients of section 138 of N.I.Act and alleged that accused has committed the offence punishable under section 138 of N.I.Act.
13. Later, on 03.09.2021 accused has voluntarily compromised and settled the matter with the complainant and they have filed joint memo reporting their settlement and prays this court to pass the judgment as per their settlement.
14. In view of the joint memo filed by the parties, it is evident that accused has admitted the issuance of cheque to the complainant as per Ex.P24, and his signature on it, Further, accused admitted his liability towards complainant, along with the dishonor of cheque as alleged by the 7 C.C.No. 13941/2020 complainant. Accused admitted the transaction in between him and complainant as per invoices ExP2 to 23 as alleged by the complainant. In other words accused has admitted the entire case of the complainant in toto. Further, by filing the joint memo, they have voluntarily reported their settlement, stating that, accused has paid Rs.3,00,000/ to the complainant on 12.10.2020 and they have settled the matter for Rs.13,11,446. Out of the settled amount, accused paid Rs.02,11,466/ to the complainant, by way of DD in open court on 03.09.2021 and complainant has received the said DD in the open court and further accused has agreed to pay the balance settled amount as per the repayment schedule stated in the joint memo.
Accused has agreed to pay the following installments amount on its due dates as per the joint memo, and its as follows: Installment Date Installment amount 1st DD/RTGS/NEFT 04.10.2021 2,20,000/ 2nd DD/RTGS/NEFT 08.11.2021 2,20,000/ 3rd DD/RTGS/NEFT 03.12.2021 2,20,000/ 4th DD/RTGS/NEFT 03.01.2022 2,20,000/ 5th DD/RTGS/NEFT 03.02.2022 2,20,000/ 8 C.C.No. 13941/2020
15. The aforesaid fact is consented/acknowledge by the complainant. It is also true that, complainant has reserved his right, to recover the settled amount as per law, in case if there is any default from the accused. The said fact is also consented by the accused.
16. Apparently, accused has admitted the entire case of the complainant, and he has reported his settlement by filing joint memo, inasmuch, there is no material on record to disbelieve the reported settlement by the parties and it is deserved to be accepted. In view of the joint memo filed by complainant and accused, it is crystal clear that accused has admitted his guilt as alleged by the complainant. Further more, complainant and accused, have agreed for their own settlement and they have taken initiative with repayment schedule for the settled amount and they prays this court to pass the judgment accordingly, by awarding the fine amount as compensation to the complainant for its enforcement, such being the case and to meet the ends of justice and equity, and by considering the admitted settlement . as reported by the parties as per their join memo, I am answering this point in the Affirmative.
9 C.C.No. 13941/202017. POINT NO.2: For the foregoing reason and discussion, on point No.1, I proceed to pass the following:
ORDER Exercising the power conferred U/Sec.264 of Cr.P.C. accused is hereby convicted for the offence punishable U/Sec. 138 of N.I.Act1881.
Accused is sentenced to pay the fine amount of Rs.11,00,000/ on or before 03.02.2022.
Accused shall pay the fine amount of
Rs.11,00,000 / in 5 th
monthly installments as per
the reported settlement schedule, and it as
follows
Installment Date Installment
amount
1st DD/RTGS/NEFT 04.10.2021 2,20,000/
2nd DD/RTGS/NEFT 08.11.2021 2,20,000/
3rd DD/RTGS/NEFT 03.12.2021 2,20,000/
4th DD/RTGS/NEFT 03.01.2022 2,20,000/
5th DD/RTGS/NEFT 03.02.2022 2,20,000/
In default, accused shall have to under go simple imprisonment for a period of one year.
The entire fine amount shall be paid to the complainant as compensation as per section 357 of Cr.P.C.10 C.C.No. 13941/2020
The reported joint memo shall form part of the record.
The bail bond and surety bond of accused shall continue till he pays the agreed settled amount as per the joint memo.
Office is directed to supply the free copy of this judgment to the accused forthwith.
(Dictated to the Stenographer and transcribed and computerized by her, corrected by me and then pronounced by me in the open court on 6th Day of September 2021).
(P. SHIVARAJ) XXXVIII A.C.M.M. B'luru.
ANNEXURES:
1) List of Witnesses Examined for the Complainant:
PW.1 : Abode Metal Products.
2) List of Documents Marked for the Complainant:
Ex.P.1 : Authorization Letter. Ex.P.2 to 23 : 22 Invoices. Ex.P.24 : Copy of cheque Ex.P.24(a) : Signature of the accused on the cheque.
Ex.P.25 and 26 : Copy of 2 Cheque return memo.
Ex.P.27 : Copy of Legal Notice.
Ex.P.28 : Copy of Postal Receipt.
Ex.P.29 : Postal Tracking Print out Details.
11 C.C.No. 13941/2020
3) List of witnesses examined for the Accused: Nil
4) List of Documents Marked for the Accused: Nil (P. SHIVARAJ) XXXVIII A.C.M.M. B'luru 12 C.C.No. 13941/2020 (Judgment pronounced in Open Court vide a separate Order) ORDER Exercising the power conferred U/Sec.264 of Cr.P.C. accused is hereby convicted for the offence punishable U/Sec. 138 of N.I.Act1881.
Accused is sentenced to pay the fine amount of Rs.11,00,000/ on or before 03.02.2022.
Accused shall pay the fine amount of Rs.11,00,000 / in 5th monthly installments as per the reported settlement schedule, and it as follows Installment Date Installment amount 1st DD/RTGS/NEFT 04.10.2021 2,20,000/ 2nd DD/RTGS/NEFT 08.11.2021 2,20,000/ 3rd DD/RTGS/NEFT 03.12.2021 2,20,000/ 4th DD/RTGS/NEFT 03.01.2022 2,20,000/ 5th DD/RTGS/NEFT 03.02.2022 2,20,000/ In default, accused shall have to under go simple imprisonment for a period of one year.
The entire fine amount shall be paid to the complainant as compensation as per section 357 of Cr.P.C.
13 C.C.No. 13941/2020The reported joint memo shall form part of the record.
The bail bond and surety bond of accused shall continue till he pays the agreed settled amount as per the joint memo.
Office is directed to supply the free copy of this judgment to the accused forthwith.
(P. SHIVARAJ) XXXVIII A.C.M.M. B'LURU.
14 C.C.No. 13941/2020