Bangalore District Court
Hdfc Bank Limited vs Leelavathi on 23 June, 2025
KABC030637442024
IN THE COURT OF THE XXVI ADDL. CHIEF JUDICIAL
MAGISTRATE, AT: BENGALURU
Present : Smt. NIRMALA .S.
B.A.L., LL.M.
XXVI Addl., Chief Judicial
Magistrate, Bengaluru.
DATED THIS THE 23rd DAY OF JUNE 2025
JUDGMENT U/S 355 OF Cr.P.C.1973
1. Serial number : C.C. No.37826/2024
2. Name of the : HDFC Bank Limited
complainant HDFC Bank House,
Ground floor, Rashtrothana
Bhavan, No.3/1, Ward No.77,
Nrupathunga Road,
Opposite RBI,
Bengaluru-560 001.
Rep. by its
Authorised Signatory
(By H.S.- Advocate)
3. Name of the accused : Leelavathi P.
Aged about 56 years
No.49, 3rd Cross, Cubbon pet,
Bengaluru North,
Bengaluru-560 002.
2
CC No.37826/2024
also at
Everyday banking and
Financial Solutions,
No.30/1, 1st Floor, 11th Cross,
Margosa Road, Malleshwaram,
Guttahalli, Bengaluru-560 003.
(By Sri.G.S. Advocate)
4. The offence : Section 138 of the N.I. Act
complained of or
proved
5. Plea of the accused : Pleaded not guilty
6. Final order : Accused is convicted
7. Date of order : 23-06-2025
******
JUDGMENT
The complainant has filed this complaint against the accused for the offence punishable U/s.138 of Negotiable Instruments Act.
2. The complainant has stated that, the accused approached the complainant for extending financial assistance and availed a credit facility in the form of 3 CC No.37826/2024 AUTO LOAN under a loan facility agreement bearing No.9424787 entered into between complainant as a creditor and accused as borrower on terms and conditions more particularly mentioned therein. The accused had opted for repayment of the loan amount through Standing Instructions/NACH mandate by executing the SI which authorizes the complainant to present the same to clear the loan repayment installment/outstanding amount. Under the loan agreement a sum of Rs.7,97,240.01 was due and payable by the accused and in respect of the same the complainant has initiated the above e-SI/NACH mandate through e-SI/NACH transaction No.S9424787039-1, of the accused bank account bearing No.50100226160220. When the said e-SI/NACH was presented, it was dishonoured with endorsement "Funds Insufficient" on 16-04-2024. 4
CC No.37826/2024 Thereafter the complainant got issued Legal notice on 19-04-2024 through RPAD, the said notice has been served on the accused on 27-04-2024. The accused till today has not paid any amount to the complainant. Hence this complaint.
3. The accused appeared before the court through her counsel and the accused enlarged on bail, substance of plea recorded. The accused pleaded not guilty and claims to be tried.
4. The complainant in order to establish its case examined its authorised signatory by name Anil Kumar V. as PW1 and got marked 10 documents as per Ex.P-1 to Ex.P-10. When the matter was posted for cross- examination of PW1, the complainant and the accused 5 CC No.37826/2024 filed joint memo and prayed to pass the judgment and necessary order on joint memo.
5. Heard arguments.
6. The points that arise for consideration are as under:
1) Whether the complainant proves that the accused has issued e-SI/NACH bearing account No.50100226160220 for a sum of Rs.7,97,240.01/- drawn on HDFC Bank Limited, for discharge of legally recoverable debt, and same was returned unpaid for the reason "Funds Insufficient" and even after receipt of legal notice the accused has failed to pay the amount and thereby committed an offence U/s.138 of NI Act?
2) What order ?6
CC No.37826/2024
7. My findings on the above points are as under:
Point No.1: In the affirmative, Point No.2: As per the final order for the following:-
REASONS POINT NO.1:
8. The complainant had filed the complaint against the accused for the offence punishable U/s.138 of NI Act. The complainant and accused filed joint memo on 12-06-2025. Under the joint memo it is stated that, the accused has agreed to pay Rs.4,07,000/- as full and final settlement.
A sum of Rs.4,07,000/- is liable to be paid in one lumpsum by the accused to complainant within a period of two months from today i.e., on or before 28th day of July, 2025 without any default in any manner.
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CC No.37826/2024 It is submitted that the above said amount is full and final settlement between the complainant and accused and there is no further any claim between the parties with respect to the transaction happened in the above case. In case the accused fails to do so, this Hon'ble court shall deal with the accused in accordance with law for the aforesaid offence. The complainant, accused and their respective counsels have consented to pass the judgment and necessary order for the said amount.
9. It is the case of the complainant that, accused had availed Auto loan. The accused became a chronic defaulter in payment of installment in respect of the above said loan. Towards outstanding loan amount accused issued e-SI/NACH bearing account No.50100226160220 for a sum of Rs.7,97,240.01/- drawn on HDFC Bank. When the said e-SI/NACH was 8 CC No.37826/2024 presented for encashment, it was dishonoured with endorsement "Funds Insufficient" on 16-04-2024.
10. In this case the court will have to see whether mandatory requirement of Sec.138 of NI Act has been complied with or not. The e-SI/NACH was presented for encashment and endorsement was received on 16-04- 2024 for the reason "Funds Insufficient". On 19-04-2024 Legal notice was issued through RPAD. The notice sent through RPAD has been served on the accused on 27-04- 2024. The complaint was filed on 12-06-2024. It is evident that the e-SI/NACH was presented for encashment within the validity time, notice demanding the e-SI/NACH amount and filing of the complaint before the court after service of notice are within the period specified. From the joint memo it is clear that the accused has not paid the e-SI/NACH amount. 9
CC No.37826/2024
11. On appreciation of the materials this court is of the opinion that the accused has failed to prove that he has not issued the e-SI/NACH for discharge of legally enforceable debt. On the contrary the complainant has proved that the accused has issued the e-SI/NACH, in question towards discharge of legally enforceable debt. And when the said e-SI/NACH was presented it has been dishonoured and in this regard notice has been sent to the accused. The accused has refused the notice and also he has not repaid the e-SI/NACH amount. Hence I am of the considered view that the complainant has proved that the accused has committed an offence under section 138 of NI Act. Hence point No.1 is answered in affirmative. POINT No.2
12. In view of the discussion made above, I am of the opinion that the complainant has proved that the accused 10 CC No.37826/2024 has committed an offence U/s.138 of Negotiable Instruments Act. Joint memo has been filed by the complainant and the accused on 12-06-2025 before this court and consented to pass judgment. Under the joint memo it is stated that, the accused has agreed to pay Rs.4,07,000/- as full and final settlement.
A sum of Rs.4,07,000/- is liable to be paid in one lumpsum by the accused to complainant within a period of two months from today i.e., on or before 28th day of July, 2025 without any default in any manner.
It is submitted that the above said amount is full and final settlement between the complainant and accused and there is no further any claim between the parties with respect to the transaction happened in the above case. In case the accused fails to do so, this Hon'ble court 11 CC No.37826/2024 shall deal with the accused in accordance with law for the aforesaid offence and accordingly the complainant, accused and their respective counsels have consented to pass the judgment and necessary order for the said amount. When the complainant and accused themselves came forward with mode of repayment of the loan amount, I feel that it is just to permit the accused to pay the amount as agreed by both the parties, hence I proceed to pass the following:-
ORDER Acting under Sec.264 of Cr.P.C., the accused is convicted for the offence punishable under Sec.138 of Negotiable Instruments Act.
The accused is sentenced to pay an amount of Rs.4,07,000/- (Rupees 12 CC No.37826/2024 Four lakhs seven thousand only) to the complainant towards settlement.
The accused is directed to pay the balance amount of Rs.4,07,000/- in the following manner.
A sum of Rs.4,07,000/- is liable to be paid in one lumpsum by the accused to complainant within a period of two months from today i.e., on or before 28th day of July, 2025 without any default in any manner.
The joint memo filed by the complainant and the accused on 12-06-2025 shall form part and parcel of this order.
In default the accused shall under go simple imprisonment for the period of 03 (three) months for the offence punishable U/s.138 of Negotiable Instruments Act and also liable to pay 13 CC No.37826/2024 the amount as per the joint memo to the complainant.
The bail bonds of the accused shall stands canceled automatically on payment of the entire amount.
Office is directed to supply a free copy of this judgment to the accused.
(Typed directly on computer to my dictation by the stenographer in the chamber, corrected and then pronounced by me in the open court on this the 23rd day of June 2025.) Digitally signed by NIRMALA NIRMALA Date: 2025.07.04 12:59:15 +0530 (Smt. NIRMALA .S.) XXVI ACJM., Bengaluru City.
ANNEXURE Witnesses examined for the Complainant:
P.W.1 : Anil Kumar V. Witness examined for the accused:
Nil.14
CC No.37826/2024 List of Documents marked for the Complainant:
Ex. P1 Certified copy of GPA Ex. P2 DAF Ex. P3 Memorandum Ex. P4 Copy of legal notice Ex. P5 & 6 Postal receipts Ex. P7 Postal cover Ex. P8 Postal Track Consignment Ex. P9 Certificate U/s.65B Ex. P10 Loan account statement
List of Documents marked for the accused: Nil.
(Smt. NIRMALA .S.) XXVI ACJM., Bengaluru City.