Bangalore District Court
Manappuram Finance Limited vs Selvi on 7 March, 2025
Digitally signed
KABC020421252023 by
RAGHAVENDRA
RAGHAVENDRA SHETTIGAR
SHETTIGAR
Date:
2025.03.10
11:37:37 +0530
IN THE COURT OF XIV ADDL. SMALL CAUSES JUDGE AND
ADDL.CHIEF JUDICIAL MAGISTRATE
(SCCH-10) AT BENGALURU
Dated This The 7th day of March 2025
PRESENT:
SHRI. RAGHAVENDRA SHETTIGAR,
B.A., LL.B.,
XIV ADDL. SMALL CAUSES JUDGE &
ADDL.CHIEF JUDICIAL MAGISTRATE,
BENGALURU.
C.C No.14564/2023
COMPLAINANT : M/s. Manappuram Finance Limited,
Having its registered office at :
CINL65910KL 1992PLC006623
IV/470A (Old) W638A,
(New) Manappuram House,
Valapad, Thrissur,
Kerala - 680 567.
& Regional Office at:
Door No.11/1A, 1st Floor,
beside Lakshmi Narasimha
Swamy Temple,
Vishwaneedam(P),
Sunkadakatte,
2 C.C.No.14564/2023
SCCH-10
Magadi Main Road,
Bengaluru - 560091.
Reptd. By its Authorized Signatory,
Mr. Chidananda. S.G.
(By Sri. S.B.G., Advocate)
// Versus //
ACCUSED : Selvi,
Late Kannan,
Age : Major,
156, Old RMS Road,
Arsikere, Near Ravi Residency,
Arsikere Bazar, Hassan,
Karnataka - 573103.
(By Sri. K.S.Y, Advocate)
:: J U D G M E N T ::
This complaint is instituted by the complainant against the accused under Section 200 of Cr.P.C. for the offence punishable under Section 138 of Negotiable Instruments Act- 1881 R/w Section 25 of the Payment and Settlement Systems Act, 2007.3 C.C.No.14564/2023
SCCH-10
2. The Case of the complainant as per complaint averments is as follows:
The complainant is a company incorporated under the companies Act, 1956 and a Banking Company. In the course of their financial services, they introduced Loan facility for the benefits of its valued customers. The accused had approached the complainant company to sanction loan for her urgent financial needs. Accordingly, the complainant sanctioned the loan of Rs.1,09,000/- under said Digital Personal Loan facility vide Loan Account No.56323 and the accused had opted for repayment mode vide Electronic Clearing Service by signing ECS / NACH declaration. Further, under the contract a sum of Rs.1,33,973/- was due and towards payment of debt accused had issued ECS/ NACH. Transaction bearing UMRN No.SDIN7021904230063270 presented for encashment to Axis Bank Ltd, Cox Town Branch, Bengaluru, same was dishonoured with the remarks "A/c Blocked or Frozen" on 09.10.2023. Then, the complainant got issued a legal notice to 4 C.C.No.14564/2023 SCCH-10 the accused dated 27.10.2023, calling upon her to pay the amount. Despite receipt of notice, the accused has not paid the amount. Thus, the accused has committed the offence punishable U/Sec.138 of Negotiable Instruments Act R/w Section 25(1) of the Payment and Settlement Systems Act, 2007. Hence, this complaint.
3. After filing of the complaint, the cognizance of the offence was taken and registered criminal case against the accused and the summons was issued to her. The accused has appeared before the Court through her counsel and was enlarged on bail. Subsequently, plea was recorded and the substance of the accusation was read over and explained to her. She pleaded not guilty and claimed to be tried.
4. The sworn statement on affidavit of Authorized signatory of the complainant company is treated as evidence of PW-1 and the documents produced by complainant were marked as Ex.P.1 to Ex.P.5.
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SCCH-10
5. Further, despite giving sufficient opportunity the accused had not chosen to cross-examine PW-1. Further, the accused has not tendered for recording of the statement as required U/Sec.313 of Cr.P.C. Hence, the statement of the accused U/Sec.313 was dispensed with.
6. Heard the arguments. Perused the materials available on record.
7. Now the points that arise for my determination are as follows:-
1) Whether the complainant proved that the accused has opted for loan repayment mode by way of ECS/NACH and a sum of Rs.1,33,973/-
was due and payable by the accused and when ECS/ NACH was presented to the bank, same was dishonoured for 'A/c Blocked or Frozen' and despite receipt of demand notice, the accused has not paid the amount and thereby she has committed an offence punishable under Section 25(1) of the Payment and Settlement Systems Act, 2007 ?
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2) What Order?
8. On the basis of the materials available on record, my finding to the above points are as follows:
POINT NO.1: In the Affirmative.
POINT NO.2: As per the final order, for the following:
REASONS
9. POINT NO.1:
According to the complainant, the accused approached the complainant company for financial assistance for her urgent financial needs and the complainant company sanctioned the loan of Rs.1,09,000/- and the accused has opted for repayment mode vide ECS/NACH and under contract a sum of Rs.1,33,973/- was due and payable by the accused and and when the ECS/NACH was presented, same was dishonoured for the reason 'A/c Blocked or Frozen' and the complainant got issued a legal notice to the accused calling 7 C.C.No.14564/2023 SCCH-10 upon her to pay the said amount and despite service of notice, the accused has not paid the amount.
10. To substantiate its case, the Authorized Signatory of the complainant company was examined as PW-1 and got marked documents as Ex.P.1 to Ex.P.5. PW-1 has reiterated the contents of the complaint in his affidavit about lending of loan to the accused under Digital personal loan facility, declaration regarding repayment of loan through ECS/NACH, presentation of the same and its dishonour and issuance of demand notice to the accused and calling upon her to pay the amount and her failure to comply the same.
11. Now, let me scrutinize the documents relied by the complainant in order to examine the compliance of statutory requirements as envisaged under Section 138 of N.I. Act R/w Section 25, 26 and 28 of Payment and Settlement Systems Act 2007. Ex.P.1 is the Authorization letter, Ex.P.2 is the NACH 8 C.C.No.14564/2023 SCCH-10 report, Ex.P.3 is the Legal notice, Ex.P.4 is the Postal receipt and Ex.P.5 is the Postal acknowledgment.
12. On careful perusal of Ex.P.2 NACH043 report it reveals that, NACH transaction for a sum of Rs.1,33,973/- was failed for the reason 'A/c Blocked or Frozen' in the account of the accused. Ex.P.3 is the Demand notice wherein it discloses that, after dishonour of ECS/NACH, the complainant caused a legal notice to the accused calling upon her to pay an amount of Rs.1,33,973/-. Said notice was duly served on the accused as per Ex.P.3.
13. On perusal of Ex.P.2 and Ex.P.3, it is crystal clear that the accused has opted for loan repayment mode vide ECS /NACH and when same was presented for a sum of Rs.1,33,973/- same was dishonoured for 'A/c Blocked or Frozen' and despite service of notice the accused has failed to make the said payment.
14. In the instant case, the accused neither cross-examined 9 C.C.No.14564/2023 SCCH-10 PW-1 nor lead any evidence on his behalf. The evidence tendered on oath by PW-1 remained unchallenged and unrebutted. Hence, the case put forth by the complainant has to be accepted. Therefore, this Court is of the opinion that the accused has committed an offence punishable U/s. 25(1) of the Payment and Settlement Systems Act for dishonour of NACH by not maintaining sufficient balance in her account. Hence, this Point No.1 under consideration is answered in the Affirmative.
15. POINT NO.2:
In view of the reasons stated and discussed above, the complainant has proved that, the accused has committed an offence punishable under Section 25(1) of the Payment and Settlement Systems Act, 2007. By considering the circumstances of the case and the amount involved, this Court is of the opinion that, if the accused is directed to pay fine amount of Rs.1,40,000/- it will be just and proper. 10 C.C.No.14564/2023
SCCH-10 Accordingly, this Court proceeds to pass the following;
ORDER Acting under Sec. 255(2) of Cr.P.C., the accused is found guilty and she is convicted for the offence punishable under Section 25(1) of the Payment and Settlement Systems Act, 2007 and she is sentenced to pay a fine of Rs.1,40,000/- (Rupees One Lakh Forty Thousand only).
In default to pay the fine, accused shall undergo simple imprisonment for a period of three months.
Further, entire fine amount on recovery shall be paid to the complainant as compensation.
Supply free copy of this judgment to the accused immediately.
The bail bond stands canceled.
(Dictated to the Stenographer directly on computer, typed by her and corrected by me and then pronounced in the open Court on 7th day of March 2025).
(RAGHAVENDRA SHETTIGAR) XIV ADDL.S.C.J., ACJM & MEMBER-MACT, BENGALURU.
11 C.C.No.14564/2023
SCCH-10 ::A N N E X U R E::
LIST OF WITNESSES EXAMINED ON BEHALF OF THE COMPLAINANT:-
P.W1 : Mr. Chidananda. S.G LIST OF DOCUMENTS MARKED ON BEHALF OF THE COMPLAINANT:-
Ex.P.1 : Authorization letter Ex.P.2 : NACH report Ex.P.3 : Copy of Legal notice Ex.P.4 : Postal receipt Ex.P.5 : Postal acknowledgment
LIST OF WITNESSES & DOCUMENTS ON BEHALF OF THE ACCUSED:-
-- NIL --
(RAGHAVENDRA SHETTIGAR) XIV ADDL SMALL CAUSES JUDGE & ACJM, BENGALURU.