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Bangalore District Court

Sri.S.Chandramohan vs Sri.Suresh R @ Rajanna Suresh on 27 November, 2015

IN THE COURT OF THE XXII ADDL.CHIEF METROPOLITON
                MAGISTRATE, BANGALORE CITY

          Dated this the 27th day of November, 2015

   PRESENT: SRI. NAGARAJEGOWDA.D, B.Com., LL.B.,
               XXII Addl.C.M.M., Bangalore City.

                 JUDGMENT U/S 355 OF Cr.P.C.

                      C.C.No.2094 /2015

Complainant             :   Sri.S.Chandramohan,
                            Son of S.Ashwathnarayana,
                            Residing at Chamundeshwari
                            Nilaya, No.55/1, 1st floor, 5th main road,
                            7th Cross, D C Street, Chamrajpet,
                            Bangalore - 560 018.

                            (By Sri J M Ravikumar Adv.)
                      V/s.
Accused                 : Sri.Suresh R @ Rajanna Suresh,
                           No. 61/1, Hari Divya Nilayam,
                           2nd floor, 13th Cross, Opp. S.M.Enterprises,
                           4th main road, Lakshminarayanapura,
                           Bangalore - 560 021.


                            (By Sri G.A.Anthony Cruze, Adv)


Date of Institution         5-1-2015.

Offence complained of       U/s 138 of N.I.Act.

Plea of the accused         Pleaded not guilty
Final Order                 Accused is Convicted.
Date of Order           :    27.11.2015.
                                     2                   C.C.No.2094/2015



        The complainant filed the private complaint u/s 200 of

Cr.P.C alleging that, the accused person has committed an offence

punishable u/s 138 of N.I.Act.


                         REASONS


        The brief facts of the complainant case is as follows:-


   2.     Both the complainant and accused are friends. During

Feb.2014     the   accused   requested the     complainant    to lend

Rs.1,50,000/- for his urgent business needs and represented

that he will repay the same with interest @ 18% Per annum within

6 months time. The complainant had paid the said sum to this

accused on 25-2-2014. The accused was regularly paying the

interest every month. However, failed to repay the said loan

liability within six months as promised. On persistent demand for

discharge of the said liability the accused issued cheques bearing

No. 000046 and 000047 dated 27-10-2014 for Rs.50,000/- each

and No. 000049 dated 27-10-2014 for Rs.49,500/- of the Karur

Vysya Bank, Jayanagar, Bangalore in favour of the complainant,

in full settlement of his principal loan liability , subject to

honouring of the said cheques and assured that the said cheques

will be honoured on its presentation.       As per the assurance of

accused, the complainant presented the cheque bearing No.
                                   3                  C.C.No.2094/2015



000046 dated 27-10-2014 for Rs.50,000/- . But the said cheque

is returned unpaid with an endorsement to that effect " Refer to

Drawer" as per the endorsement dated 28-10-2014 of State Bank

of Mysore, Chamrajpet branch. Thereafterwards, the complainant

got issued legal notice on 22-11-2014 to the accused, calling upon

the accused to pay the cheque amount . The notice sent by RPAD

was served to the accused on 24-11-2014 . Inspite of receipt of

legal notice, he did not replied or complied the notice and thus

accused committed the offence punishable u/s. 138 of NI Act and

punish the accused in accordance with law and to award suitable

compensation as per Sec.357 of Cr.P.C., in the interest of justice

and equity.


        3. The accused appeared before this court and contest this

case by denying the entire case of complainant at the time of

recording of Plea of Accusation .     In order to prove the case of

complainant, he adduced his oral evidence as PW-1 by way of

affidavit and got marked Ex.P1 to Ex.P7 and this PW-1 has been

fully   cross   examined   by   the   accused   counsel   and   thus

complainant closed his side evidence.


        4. There afterwards, the accused examined u/s.313 of

Cr.P.C. in which, he totally denied the entire case of complainant .
                                      4                     C.C.No.2094/2015



He in support of his denial, lead his oral evidence as DW-1 on

Oath and got marked Ex.D 1 to Ex.D4 and this DW-1 has been

fully cross-examined by the complainant counsel and thus closed

his side defence evidence.


     5.     I   have   heard   the       arguments   of   Ln.counsel   for

complainant and accused on merit. In support of the case of

accused, the Ln.counsel for accused            relied on the decisions

reported in :


     2015 AIR SCW 64.

     AIR 2011 (NOC) 422 Karnataka

     2010(2) DCR 700

     2013(3) DCR 120

     III (2006) BC 482

     Hence, prays for acquittal of          the accused in accordance

with law.


     6. In order to prove the case of complainant,                     the
complainant adduced his oral evidence as PW-1 filed by way of
affidavit. In which, he reiterated complaint contention and got
marked Ex.P1 cheque and identified the signature of the accused
as per Ex.P1(a).   Further got marked Ex.P2 is an endorsement
issued by the bankers stating that Ex.P1 cheque was dishonoured
                                   5                   C.C.No.2094/2015



due to REFER TO DRAWER. Ex.P3 is the copy of legal notice .
This notice does not contain the signature of the complainant
except his counsel . Ex.P4 is the postal receipt. Ex.P5 is the postal
acknowledgement to show the legal notice sent to the accused by
RPAD was duly served . Inspite of service of legal notice, the
accused did not choose to reply or comply the notice etc.. Ex.P6 is
the BBMP Spl.Notification and Ex.P7 is the plan showing existing
building municipal with respect to Annayappa's property.

     7. The accused has denied the entire case of complainant

and he has taken a defence that alleged cheque in question was

issued to the son of the complainant for the purpose of security

during the year, 2012-13 towards the cloth advance and in that

transaction, the complainant son Girish did not returned the

security cheque and same has been misused and through this

complainant filed this case etc.. In support of the defence taken

by the accused, he did not examined the said Girish and when he

was given alleged cheque in question to the said Girish and he do

not know anything. Further in order to show that he had bank

account at Karur Vysya Bank, got marked the account summary

as Ex.D1. Apart from it, he made an Insurance Policy Renewal

notice as per Ex.D2 and he was residing in his own house for

that, they have produced Katha extract issued by the BBMP as

per Ex.D3 and also another Katha extract as per Ex.D4 and he
                                   6                   C.C.No.2094/2015



has not made any money transaction with the complainant and

hence, he prays for acquittal from this case.


     8. The complainant counsel cross-examined the DW-1 . In

the cross-examination, he tried to elicited that at Ex.D1 to Ex.D4

documentary evidence he had given name of his house as SREE

RANGA NILAYA        as per Ex.D3 and Ex.D4 document three

brothers have partitioned the property and the share belongs to

him in K-61/A is entered in the          name of this accused and

through DW-1 got marked Special Notification of BBMP Authority

as per Ex.P6 along with this notification got marked sketch as per

Ex.P7 . As per Ex.D7 he has not at all renewed in the katha

No.61/A . Except he is residing only in K-61 . He admitted that

the address stated in the summons in this case is belongs to him .

About last seven years he made a money transaction through the

cheques only and he used to pay the money through the cheques

only to others . Like wise in this case also he filled up the cheque

in question and given to the complainant and admitted that

signature   found   on   the   alleged    cheque   and   the   postal

acknowledgement signature is belongs to him but he has stated

that it appears to be belongs to him etc.. Except the total denial of

contention of complainant, the accused failed to given rebuttal

evidence to the case of complainant to show that he did not issue
                                      7                       C.C.No.2094/2015



alleged cheque in question to this complainant for discharge of

legal liability etc..


      9. In the cross-examination of PW-1 accused counsel tried

to elicited that alleged cheques are given to son of complainant

and the same has been misused by the complainant . Except the

total denial of contention of accused, nothing brought out to prove

that the alleged cheques are not at all issued for discharge of legal

debt etc.. In support of his contention, he relied on the decisions

reported in :


      2015 AIR SCW page 64 ( K.Subramani V K.Damodara
      Naidu) wherein, it is held that,Negotiable Instruments Act
      (26 of 1881) S.138- Dishonour of cheque - complaint-
      Finding by trial court on consideration of entire oral and
      documentary evidence- That complainant had no source of
      income to lend sum of Rs.14 lakhs to accused- He failed to
      prove that there is legally recoverable debt payable by
      accused to him- Acquittal of accused, was proper- order by
      High Court remanding case for retrial- Liable to be set aside.




      AIR 2011 (NOC) 422 Karnataka ( B.Girish V S.Ramaiah)
      Held that " Dishonour of cheque - Presumption as to
      legally    enforceable      debt-     Rebuttal   of-    Accused
      specifically      denied   monetary    transaction     and   that
      cheque was not issued for discharge of any               debt or
      liability- No documentary evidence led by complainant
                               8                       C.C.No.2094/2015



to   show     alleged   transaction-    Though      complainant
alleged that he lent money to accused after borrowing
from   other     sources-   There      was   no     documentary
evidence to show alleged borrowings nor any agreement
for payment of interest between complainant and
accused- Except cheque no evidence produced to show
that accused had acknowledged receipt of money- More
over since transaction was above Rs.20,000/- there was
Account payee cheque issued by accused hence alleged
cheque was in violation of S.269(ss) of Income tax Act-
In absence of any oral and documentary evidence from
complainant-      presumption       u/s.     139,    118   stood
rebutted. "



2010(2) DCR 700 Amzad Pasha V H.N Lakshman, Held that...

Negotiable Instruments Act.1881-section 138 proviso(b)-
Notice-service not proved-effect-it service of notice under
section 138 of NI act is not proved therefore finding that
complainant has not complied with the requirement of
provision of section 138 of N.I act is just and proper.




2013(3) DCR 120 ( M/s.Sekhon and Sekhon Finance
and Vs Rani ) Held that, ... Admission of scope -
Held- Admission of signature on the cheque is not
synonymous with admission of execution and does
not take away the right of a. to content that a blank
signed cheque was misutilized by the payees.."
                                      9                    C.C.No.2094/2015




     III (2006) BC 482 ( BPDL Investments (Pvt.) Ltd Vs. Maple
Leaf Trading International (Pvt.) Ltd. ) Held that...             "   (ii)
Negotiable Instruments Act 1881 Section 87 - Effect of Material
alteration - cheque would become void- for cheque or other
Negotiable   Instrument   to   remain       valid   despite   material
alterations, material alterations must be with consent of other
party and unless it was made towards furtherance          of common
intention - Alternation in date on Negotiable Instruments
amounts to material alteration           in terms of section 87 of
Negotiable Instruments Act - Insertion of date where there was
no date amounts to material alteration- Defendant did not
consent to alteration in dates nor it is part of common
intention of plaintiff and defendant to alter dates in cheque-
cheques would be void by virtue of section 87 of Negotiable
Instruments Act.




     10. On the basis of the aforesaid decisions coupled with the

defence taken by the accused are not squarely applicable to the

case of accused to show that accused had given rebuttal evidence

to the case of complainant.      Under these circumstances, the

accused has not approached this court with clean hands. The

complainant had proved the alleged guilt of the accused beyond

all reasonable doubt. The accused is liable for conviction.

Accordingly, I pass the following:
                                  10                     C.C.No.2094/2015



                              ORDER

Acting u/s 265 of Cr.P.C., the accused is convicted for the offence punishable u/s 138 of N.I.Act and sentenced to pay fine of Rs.2,000/- (Rs.Two thousand only). In default of payment of fine amount, the accused shall undergo S.I. for a period of TWO months.

The complainant is awarded compensation amount of Rs.1,00,000/- (Rs.One lakh only) i.e. the double the cheques amount . The same shall be paid by the accused to the complainant within the period of 30 days from the date of this order.

In default of payment of this compensation amount, the accused shall undergo simple imprisonment for a period of One year.

Office is directed to furnish the copy of this Judgment at free of cost to the accused.

(Dictated to the Stenographer, transcribed and computerized by her, corrected and then pronounced by me in the open court on this the 27th day of November, 2015) (NAGARAJEGOWDA.D) XXII ACMM, Bangalore city.

11 C.C.No.2094/2015

ANNEXURE Witnesses examined for the Complainant:

PW.1 : S.Chandramohan Witness examined for the accused:

DW-1 : R.Suresh List of Documents marked for the Complainant:

Ex.P1              :   Cheque
Ex.P1a             :   Signature of the accused
Ex.P2              :   Endorsement
Ex.P3              :   Legal notice
Ex.P4              :   Postal receipt
Ex.P5              :   Postal acknowledgement
Ex.P6                  BBMP Notification
Ex.P7                  Property sketch .

List of Documents marked for the accused:

Ex.D1              :   Account summary
Ex.D2                  Renewal notice.
Ex.D3                  Certified copy of Khatha certificate
Ex.D4                  Copy of Khatha certificate.




                                   XXII ACMM, Bangalore.
 12   C.C.No.2094/2015