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Bangalore District Court

Sri.N.Ramachandraiah vs Sri Thimmegowda on 18 August, 2015

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

           Dated this the 18th day of August, 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. 21230/2014..


 Complainant            :   Sri.N.Ramachandraiah,
                            S/o late Nadakerappa,
                            Aged aboiut 58 years,
                            Resident of No.79/9, 2nd stage,
                            6th Cross, KHB colony,
                            Basaveshwaranagar,
                            Bangalore -79.

                            ( By Sri Ravi B.Naik Asso. Adv.)
                       V/s.
 Accused                : Sri Thimmegowda,
                            S/o Venkatanarasappa,
                            Aged about 53 years,
                            Resident of No.142/2, 4th Cross,
                            Anjananagar, KEB Road,
                            Vishwaneedam Post,
                            Bangalore - 91.

                            (By Sri,N.Anjan Gowda, Adv.)

 Date of Institution        01-08-2014.

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

 Plea of the accused        Pleaded not guilty
                                2                C.C.No. 21230/2014




  Final Order              Accused is Convicted
  Date of Order        :   18.08.2015.

     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. The complainant is a business man carrying business

and also running Education Institutions and he has got vast

extent of assets. One Mr. Jagadeesha G.P. is a close friend of

complainant, in the month of June, 2011 the accused

through Mr. Jagadesha G.P. approached the complainant

requesting for financial help as the accused was in dire need

of money for his domestic necessaries.     By considering the

request of the his friend Jagadeesha and also the accused ,

the complainant had paid Rs.5,00,000/- by way of cash on

20-6-2011. At the time of availing the loan, the accused has

executed loan agreement dated 20-6-2011 and agreed to

return the said amount within 11 months from 20-6-2011
                                 3                  C.C.No. 21230/2014



and also agreed to pay interest @ 3% P.M.. Further in

addition to the said agreement, the accused also handed over

original document i.e., Possession certificate, affidavit and

G.P.A. in respect of his Site No. 147, Khatha No. 238 of

Machohalli, Dasanapura Hobli, Bangalore north taluk as a

additional security for the loan obtained by him.             After

availing the loan, the accused had also given two signed

unfilled   cheque   No.263584       and   263585       drawn     on

Corporation Bank , Anjananagara, Bangalore                 to the

complainant as a security agreeing that in the event of

accused failing to repay the loan within the stipulated period

of 11 months with interest, the complainant can initiate legal

proceedings against him and recover the amount by utilizing

the mentioned two cheques which were given as a security .

He requested the accused on several occasions to clear the

amount after completion of 11 months, but on one or the

other pretext the accused has postponed to repay the said

loan amount. Though the accused has agreed to pay the

interest @ 3% P.M., even for one month he has not paid the

interest to the complainant and all the requests and
                                    4               C.C.No. 21230/2014



demands of the complainant did not given any fruitful result

to him in getting back the amount. Hence, the complainant

failed to recovery money from the accused , he approached

his friend Jagadeesh through whom the accused has availed

the loan . At this juncture, the accused told the complainant

that he has got sufficient amount in his bank account and

instructed the complainant to present the said cheque for

collection the same are honoured. As per the request of the

accused, the complainant presented the said two cheques for

collection,     the   same   are   dishonoured   due   to   "Funds

insufficient"     on    21/6/2014.        Thereafterwards,      the

complainant got issued legal notice to the accused on

26/6/2014 by RPAD, calling upon the accused to pay the

cheques amount. But the complainant advocate did not

receive the postal acknowledgement even after lapse of two

weeks. Therefore, the complainant has got issued one more

notice on 14-7-2014 through RPAD and speed post. The

notice sent by RPAD was duly served on the accused on 15-

7-2014. The notice sent by speed post has been refused by

the accused. However, accused has given evasive reply to the
                                 5               C.C.No. 21230/2014



complainant advocate on 18/7/2014 and he has stated that

notice sent on 26/6/2014 by the complainant has also been

served on him. But he did not comply the terms of 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.P12 and

examined his friend as PW-2 Jagadeesha and this PW-1 and

PW- 2 have been fully cross examined by the accused

counsel and thus complainant closed his side evidence.


     4. There afterwards, the case was posted for recording

statement of accused u/s. 313 of Cr.P.C. Accordingly, the

statement of accused has been recorded. In which, he totally

denied the entire case of complainant . He in support of his

denial, lead his oral evidence as DW-1 on Oath and this
                               6                  C.C.No. 21230/2014



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 both complainant and

accused counsels on merit. In support of the case of

complainant , he relied on the judgment rendered in

Crl.Appeal No.261-264/2002 on the file of Hon'ble Supreme

Court of India   and hence, complainant counsel prays for

convicting 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

examined his friend PW-2 Jagadeesha, He too also supported

the case of complainant in his chief examination by way of

affidavit and got marked Ex.P1 and 2 cheques alleged to be

issued by the accused and identified the signature of the

accused as per Ex.P1(a) and Ex.P2(a).     These cheques are

dishonoured as per the acknowledgement issued by the

bankers at Ex.P3 and Ex.P4. Ex.P5 is the ¸Á®zÀ PÀgÁgÀÄ ¥ÀvÀæ

alleged to be executed by the accused in favour of the

complainant on 20-6-2011 in which, he agreed to repay
                                 7                   C.C.No. 21230/2014



the loan amount with interest and identified the signature of

the complainant and accused as per Ex.P5(a) to Ex.P5(c ) and

as   per    this   agreement,      the   complainant       examined

Jagadeesha as PW-2. He too also identified the execution of

¸Á®zÀ PÀgÁgÀÄ ¥ÀvÀæ . Ex.P6 and Ex.P6(a) is the income tax returns

of the assessment year 2012-2013 . In Ex.P6(a), it is

mentioned that loan advanced Rs.Five lakhs to this accused

by name Thimmegowda. Ex.P7 is the G.P.A. alleged to be

executed by the accused on 23/5/2007 in favour of

S.Sharavanan and affidavit of the same day executed by the

accused in favour of S.Sharavanan. Ex.P10 is the copy of

legal notice. This notice does not contain the signature of the

complainant except his counsel. Ex.P11 is the postal

acknowledgement to show the legal notice was duly served to

the accused but he did not comply the terms of notice.

Ex.P12 is the reply notice issued by the accused through his

counsel and in his reply notice , admitted that complainant

had issued legal notice dated 26/6/2014 and 14/7/2014 . In

which,     he   contended   that    he   borrowed      a   sum     of

Rs.2,00,000/- from the accused and he had              issued two
                                    8                C.C.No. 21230/2014



blank signed cheques ie. alleged cheque in question as a

security alongwith the cheques mentioned in the notice.

Further    stated    that   this   accused   has    not    borrowed

Rs.5,00,000/-       from    the    complainant     only    borrowed

Rs.2,00,000/- and he had already paid along with the

interest   within    stipulated    time   and    the      same   was

acknowledged by the complainant etc.. But the complainant

playing fraud on all such persons by misusing such blank

cheques by mentioning the amount as per his whims and

fancies. Further stated that the entire amount was returned

back to the complainant. He behaved like a very good well

wisher to the accused and assured that he will return the

cheques in question but by misusing the alleged cheques

filed this case. Hence, accused prays for dropping of any

proceedings against him in the interest of justice and equity.

Against to the contents of reply notice, the complainant has

not issued any rejoinder or counter by admitting or denying

the facts and circumstances stated in the reply notice. As per

the contents of the reply notice, in order to show accused has

paid the entire      principal with interest towards the loan
                                9                C.C.No. 21230/2014



borrowed from the complainant amounting to Rs.2,00,000/-

he has not produced any documentary evidence.


     7. In support of the case of accused, he adduced his

oral evidence as DW-1 on oath and contended that as per the

terms of reply notice and in his cross examination, he denied

the entire case of complainant except he admitted that he

knows the complainant through his friend Jagadeesha and

also admitting that he delivered the property document to the

complainant at the time of obtaining loan amount of Rs.

2,00,000/- and he admitted that as per agreement, he agreed

to present the alleged cheque in question for collection and at

the time of obtaining loan amount of Rs. 2 lakhs in the

month of Dec.2013 this PW-2 was also present etc.. Except

the total denial of contention of complainant, the accused

has not brought any cogent and convincing evidence to

disprove the case of complainant.


     8. In the cross-examination of PW 1 and 2, the accused

counsel elicited as per the contents of reply notice , same is

denied by the complainant. Under these circumstances, the

complainant had proved the alleged guilt of the accused
                                 10                C.C.No. 21230/2014



beyond all reasonable doubt . Except total denial of the case

of complainant, accused has not given any rebuttal evidence

to the case of complainant. Hence, complainant is entitled to

recover cheque amount alongwith simple interest @ 6% P.A.

by way of compensation from the accused. Hence, accused is

liable for conviction. Accordingly, I pass the following:


                             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.5000/- (Five Thousand only). In default of payment of fine amount, the accused shall undergo SI for a period of Three months .

The complainant was awarded compensation of Rs.7,25,000/-(Seven lakhs twenty five thousand ) with simple interest at the rate of 6% p.a. from the date of the cheque till realization of the same from the accused and the same shall be paid to him within the period of 30 days from the date of this order.

11 C.C.No. 21230/2014

In default of payment of this compensation amount, the accused shall undergo simple imprisonment for 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 18th day of August, 2015) (NAGARAJEGOWDA.D) XXII ACMM, Bangalore city.

ANNEXURE Witnesses examined for the Complainant:

PW.1              : N. Ramachandraiah
PW.2              : Jagadeesha G.P.

Witness examined for the accused:

DW-1 : Thimmegowda List of Documents marked for the Complainant:

Ex.P1 & P2          :   Cheques
Ex.P1a& P2a         :   Signature of the accused
Ex.P3 & 4           :   Endorsements
Ex.P5               :    ¸Á®zÀ RgÁgÀÄ ¥ÀvÀæ
Ex.P6               :   IT Returns
Ex.P7               :   GPA
                           12                C.C.No. 21230/2014



Ex.P8             : Possession Certificate
Ex.P9             : Affidavit
Ex.P10              Legal Notice
Ex.P11              Postal Acknowledgement
Ex.P12              Reply Notice dated:18.07.2014

List of Documents marked for the accused:

Nil XXII ACMM, Bangalore.