Bangalore District Court
Kmp Chits Pvt Ltd vs Gayathri Iron And Steel on 30 January, 2025
KABC020175452024
Digitally signed by
APPASAB APPASAB RAMAPPA NAIK
RAMAPPA NAIK Date: 2025.01.31 17:30:18
+0530
IN THE COURT OF XXIV ADDITIONAL SCJ & ACMM,
(SCCH-26) AT: BENGALURU
DATED THIS THE 30th DAY OF JANUARY 2025
PRESENT: Sri. APPASAB NAIK
B.A.L.L.B (Spl)
XXIV ADDL. SCJ & ACJM
BENGALURU.
1. Case No. CC.No.5183/2024
2. Name of the M/s.KMP Chits Pvt. Ltd.,
Complainant No.6/14, 2nd Floor, 4th cross,
Srinivasnagar, BSK 1st Stage,
Bangalore - 560050.
Rep.by its Legal Manager,
Sri.Manjunath.P
(By Sri.T.S.Ravindra Kumar -
Advocate)
3. Name of the Gyathri Iron & Steel,
Accused Rep.by its Proprietor
Sri. Janardhanachari.K.,
S/o.Late Kantharaju.B.,
R/at No.153, Kittur Chennamma
Cross, Bendrenagar, BSK 2nd Stage,
Subramanya Pura Main Road,
Bendrenagar, BSK 2nd Stage,
Bangalore - 560070.
(By Sri.Maheshraj.R - Advocate)
4. The offence U/s.138 of the Negotiable
SCCH - 26 2 CC No.5183/2024
complained of Instruments Act
5. Opinion of the Accused found guilty
judge
JUDGMENT
The complainant has filed this complaint Under Section 200 of Cr.P.C against the accused alleging that the accused has committed an offence punishable Under Sec.138 of the Negotiable Instruments Act, 1881. (In short for N.I.Act).
2. The brief facts of the complainant's case are as under:
It is the case of the complainant that, complainant is a reputed company incorporated under the provisions of Companies Act, engaged in the Business of Chits under the provisions of Chit Funds Act, 1982 having its registered office as stated in the cause title. In the course of chit business the accused subscribed the Chit Group P-
2, Ticket No.10 for the chit amount of Rs.15,00,000/- and executed Chit Agreement. The accused had participated in SCCH - 26 3 CC No.5183/2024 the chit auction and became a successful prize bidder. The accused received the bid amount of Rs.11,22,000/- on 18.12.2017, after deduction of other charges the accused received Rs.9,64,500/- and thereafter accused was bound to remit the monthly subscription amount from time to time. In terms of the chit agreement and in terms of the conditions reposed on accused under the agreement and also executed relevant documents like On demand promissory note, consideration receipts, surety proposal form etc., before receiving the prized/bid amount.
Thereafter, the accused has stopped making the payments towards installments and as on the date of accused is required to pay the future liability of Rs.4,80,000/- on installments. On lieu of the accrued installments, voluntarily the accused issued a cheque bearing No.253544 dated 04.01.2024 for a sum of Rs.4,80,000/- drawn on State Bank of India, Padmanabhanagar Branch, Bengaluru towards the part payment of the installments in SCCH - 26 4 CC No.5183/2024 respect of the chit. But on presentation the said cheque was dishonored by the banker with an endorsement "Refer to Drawer" dated 05.01.2024. On 02.02.2024 the complainant has issued legal notice by way of RPAD to the accused. But the same has been returned as Intimation delivered and unclaimed by the accused. In spite of it, the accused has not paid the cheque amount or given reply to the notice. Hence, this complaint.
3. After filing of the complaint, this court has taken the cognizance of the offence punishable U/s.138 of N.I. Act. Thereafter, the sworn statement of GPA holder of the complainant has been recorded and also got marked 14 documents as Ex.P1 to P14. Since the complainant has made-out prima-facie case against the accused, a Criminal Case has been registered against him for the offence punishable U/s.138 of N.I. Act and issued summons to him.
4. After perusal of the material available on record SCCH - 26 5 CC No.5183/2024 and on prima-facie material grounds, this Court took cognizance and thereafter sworn statement was recorded and summons was issued to Accused. After service of summons, the accused is appeared through his counsel and was enlarged on bail. Subsequently, plea was recorded and the substances of the accusation was read over and explained to accused. He pleaded not guilty and claimed to be tried, then the case was posted for complainant evidence.
5. In view of judgment passed by the Hon'ble Apex Court in the case of Indian Bank Association and others V/s. Union of India and others, the sworn statement on affidavit is treated as evidence of complainant and it is considered as PW-1 evidence and documents are marked as Ex.P.1 to Ex.P14 documents. 313 statement of accused is recorded accused has denying the incriminating evidence against him and adduced defence on his behalf. The learned counsel for accused filed application U/sec.145 of NI Act for permission to cross examination of PW-1 and same is allowed. Case is posted for cross SCCH - 26 6 CC No.5183/2024 examination of PW-1, at this stage, the complainant and accused filed joint memo and prayed to pass Judgment on the basis of terms and conditions enumerated in the joint memo.
6. Heard arguments of both side and perused the materials.
7. From the above facts of the case, the points that arise for my consideration are: -
I. Whether the accused is liable to be convicted in terms of joint memo dated 30-01-2025 ?
II. What Order?
8. My findings to the above points are as under :
Point No.1: - In the Affirmative Point No.2:- As per final order, for the Following: -
REASONS
9. Point No.1: - This court already issued a process to the accused and in response to it, accused appeared and proceed with the trial, as such there is no need to go back again to reconsider the compliance of provisions of Section 138 of Negotiable Instrument Act.
SCCH - 26 7 CC No.5183/2024
10. It is pertinent to note that, whenever a private complaint is filed seeking prosecution of the accused for an offence punishable Under Section 138 of NI Act, if the issuance of cheque and the signature on the cheque is accepted and admitted by the accused, an initial presumption has to be raised by the Court in favour of the complainant, that the cheque in question was issued towards legally recoverable debt or liability. Of course, this presumption is rebuttable presumption. Such rebuttable evidence has to be placed before the court by the accused. It is well known that, the accused can rebut the said legal presumption either by cross examination of complainant or by leading evidence.
11. It is significant to note that the complainant himself examined before the court and got marked some documents. After completion of evidence on complainant side, the complainant and the accused have filed joint memo and prayed to pass the judgment on the basis of SCCH - 26 8 CC No.5183/2024 terms and conditions enumerated in the joint memo. The matter has been amicably settled between the complainant and accused out of the court of the cheque claim amount of Rs.4,80,000/- the accused is agreed to pay Rs.2,00,000/- in installments, by looking into the financial status of the accused, the complainant also agreed to receive Rs.2,00,000/- (Rupees Two Lakhs Only) as against the his entire claim amount for the full satisfaction and the accused also agreed to pay the same in 4(four) installments in the following manner:
1) On 26.07.2025 - Rs.50,000/-
2) On 26.09.2025 - Rs.50,000/-
3) On 26.11.2025 - Rs.50,000/-
4) On 26.01.2025 - Rs.50,000/-
for which the complainant also agreed for the same. On that learned counsel for complainant has oral submits that may be passing the judgment as per joint memo.
12. That the complainant also agreed to receive the SCCH - 26 9 CC No.5183/2024 said amount from the accused in the above said manner and he has no other further claims in the above case whatsoever against the accused. That if the accused fails to pay the above said installment amount as agreed by him then the complainant is at liberty to intimate legal action against the accused.
13. Therefore, when the accused has admitted liability to the extent of Rs.2,00,000/-, the complainant acknowledged through this joint memo and I am of the opinion that to the extent of Rs.2,00,000/- accused is liable to be convicted. As such, I answer point No.1 in the Affirmative.
14. Point No.2: In the light of the above discussed facts and circumstances of the case, I proceed to pass the following:
ORDER Acting under Section 255[2] of Cr.P.C., the accused is convicted for the offence punishable under Section 138 of the NI Act and sentenced to pay fine amount of SCCH - 26 10 CC No.5183/2024 Rs.2,00,000/- (Rupees Two Lakh Only) as stated in the joint memo. If the said amount is deposited, same shall be paid to the complainant as compensation.
The joint memo filed by both parties dated 30-01-2025 shall part and parcel of the record/judgment.
In default, accused shall undergo SI for a period of six months.
It is further made it clear that if the accused opt to undergo imprisonment, it does not absolve them from liability of paying compensation to the complainant. Office is hereby directed to supply free certified copy of this judgment to the accused forthwith.
The bail bond of the accused and surety stands cancelled.
(Typed to my dictation by the stenographer, directly on computer, corrected, signed and then pronounced by me in the open court on this the 30th January 2025) (APPASAB NAIK) XXIV ADDL. SMALL CAUSES JUDGE & A.C.J.M. BENGALURU.
SCCH - 26 11 CC No.5183/2024
::A N N E X U R E::
I. LIST OF WITNESSES EXAMINED ON BEHALF
OF THE COMPLAINANT:
PW-1 : Manjunath.P.
II. LIST OF DOCUMENTS MARKED ON BEHALF
OF THE COMPLAINANT:
Ex.P-1 : Board Resolution
Ex.P2 : Cheque
Ex.P-2(a) : Signature of the accused
Ex.P-3 : Bank Endorsement Memo
Ex.P-4 : Legal notice
Ex.P-5 : Postal receipt
Ex.P-6 : Return Notice Cover
Ex.P-6(a) : Return notice cover is
opened in Open Court and
notice copy kept with
file and got marked
Ex.P-7 : Application Form
Ex.P-8 : Chit Agreement
Ex.P-9 : Receipt
Ex.P-10 : Demand Letter
Ex.P-11 : Surety Form
Ex.P-12 : Chit Certificate
Ex.P-13 : Notarized copy of Certificate of Chit
Commencement
Ex.P-14 : Account Statement
III. LIST OF WITNESSES EXAMINED ON BEHALF OF THE ACCUSED:
NIL SCCH - 26 12 CC No.5183/2024 IV. LIST OF DOCUMENTS MARKED ON BEHALF OF THE ACCUSED:
NIL (APPASAB NAIK) XXIV ADDL. SMALL CAUSES JUDGE & A.C.J.M. BENGALURU.