Legal Document View

Unlock Advanced Research with PRISMAI

- Know your Kanoon - Doc Gen Hub - Counter Argument - Case Predict AI - Talk with IK Doc - ...
Upgrade to Premium
[Cites 17, Cited by 0]

Delhi District Court

Smt.Prakasho vs . Mukesh Kumar (Since Deceased) Through ... on 10 May, 2018

                                                    CA No.73/17
  Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife
                                                     Smt.Promila




     IN THE COURT OF  VIKAS DHULL, SPL. JUDGE,
       (PC ACT), CBI ­ 03, DWARKA COURTS, NEW
                          DELHI


CA No. 73/17 
ID No. 337/17
CNR No. DLSW01­012098­2017


In the matter of:

Smt.Prakasho
W/o Sh.Rohtash
R/o B­100, Chhawla Village
New Delhi­110071.
                                              ... Appellant 
                       Versus

Mukesh Kumar (since deceased)
Through his wife
Smt.Promila
W/o Sh.Mukesh Kumar
R/o Pachhiya Mohalla
V & P.O. Chhawla
New Delhi­110071.
                                              ... Respondent

                                                       Page: 1/37
                                                     CA No.73/17
  Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife
                                                     Smt.Promila




Date of institution of appeal     : 12.10.2017 
Date on which judgment reserved   : 03.05.2018
Date on which judgment pronounced : 10.05.2018


                        JUDGMENT

1.   Vide   the   present   appeal,   the   appellant   has challenged   the   judgment   dated   19.09.2017 (hereinafter referred to as impugned judgment) vide which appellant was convicted under section 138   of   the   Negotiable   Instruments   Act,   1881 (hereinafter   referred   to   as   NI   Act)   and   the sentence   order   dated   27.09.2017   (hereinafter referred   to   as   impugned   sentence   order)   vide which appellant/convict was sentenced   to simple imprisonment for a period of one month alongwith compensation   of   Rs.11,00,000/­   to   the complainant   within   30   days   from   the   date   of Page: 2/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila sentence   order   and   in   default   of   payment   of compensation   to   the   complainant,   to   undergo simple imprisonment for period of four months.

2.   The brief facts which are relevant for deciding the   present   appeal   are   that   complainant   i.e. husband   of   respondent   had   filed   a   complaint before the ld.trial court under section 138 of the NI Act   alleging   therein   that   in   the   last   week   of November,   2014,   appellant   approached   the complainant  and demanded Rs.9 lac   urgently for family purpose as friendly loan with assurance to return   the   same   as   early   as   possible   within   two months.   The  complainant   i.e.   husband   of respondent  considering   long   term   family relationship   between  his  family   and   appellant, advanced the said amount from all his resources to the appellant. It was alleged that after some time when  complainant  approached   the   appellant   for Page: 3/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila repayment of  his  loan amount, appellant   started to   avoid   any   type   of   conversation   in   this   regard with   the  complainant  and   on   pressurizing   the appellant,   appellant   gave   two   cheques   to   the complainant  which on presentation were returned back   dishonoured   with   the   remarks   "   Fund Insufficient".   Thereafter,  complainant  had   issued the   notice   but   despite   service,   no   payment   was made   by  the  appellant.  Accordingly,  complainant had filed a complaint under section 138 of the NI Act against the appellant. 

3.   Thereafter,   based   upon   the   pre­summoning evidence, appellant was summoned for the offence under Section 138  NI Act and notice of accusation under   Section   138   NI   Act   was     served   upon   the appellant   to   which   appellant   pleaded   not   guilty and  claimed trial.  

Page: 4/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila

4.   The   defence   of   the   appellant,   at   the   stage   of framing of notice, was that she had not taken loan of   Rs.9   lac   from   the  complainant    and   that   the impugned   cheques   alongwith   two   other   blank signed   cheques   were   taken   from   her   by   the complainant  on   the   pretext   of   facilitating   loan from   Punjab   National   Bank.   Appellant   admitted that the impugned cheques bear her signature but stated that other particulars therein were not filled up by her. 

5.   During the course of trial, complainant expired and   in   his   place,   his   wife   i.e.   respondent   was substituted being L.R. of complainant. 

6.    Thereafter, the  matter was posted for evidence.

7.   At trial,  respondent  examined herself as CW1. After   closure   of   respondent's   evidence,   appellant Page: 5/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila was examined U/s 313 Cr.P.C. Thereafter, at the stage   of   defence   evidence,   appellant   examined himself as DW1 and her daughter Seema as DW2. 

8.    The   Ld.   trial   court   after   hearing   both   the parties,   vide   the   impugned   judgment,   found appellant guilty of the offence under Section 138 of the NI Act and sentenced him accordingly, vide the impugned sentence order.

9.   Aggrieved   by   the   impugned   judgment   and impugned sentence order, appellant has preferred the present appeal.

10. Notice of the appeal was issued to respondent, who chose not to file any reply.

11. I have heard Sh. Anil Kumar Gupta, Ld.counsel for the appellant and Sh.J.S.Sangwan, Ld.counsel Page: 6/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila for the respondent. I have also summoned the trial court record and have carefully perused the same.

12. It   was   submitted   by   the   Ld.counsel   for   the appellant   that   in   the   present   case,   Ld.trial   court has committed a grave illegality by convicting the appellant for the offence under section 138 of the NI   Act   even   though   there   was   no   incriminating evidence   on   record   to   show   the   existence   of liability with regard to cheques in question.

13. It was submitted that appellant had not issued the   cheques   in   question   to   the complainant/husband   of   respondent  in   discharge of any liability but was issued in blank alongwith two more blank signed cheques alongwith copy of Aadhar   Card,   Ration   Card,   Payslip  to   the complainant/husband   of   respondent  for   the purpose of facilitating loan from the bank for the Page: 7/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila purchase of property by the appellant. 

14. It was submitted that appellant was employed as a class IV employee with the MCD and it was not   believable   that   complainant/husband   of respondent would have advanced a  huge loan of Rs.9 lac to the appellant.

15. It   was   further   submitted   that   even   the complainant/husband   of   respondent   was   not having   the   financial   capacity   to   advance   such   a huge   loan   to   the   appellant   and   as   per   evidence, which has come on record of the respondent, their monthly expenditure was Rs.10,000 - Rs.12,000/­ and from such a low income, it was not possible to advance a huge loan of Rs.9 lac to the appellant. 

16. It   was   further   submitted   that   Ld.trial   court wrongly raised the presumption under Section 118 Page: 8/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila and 139 of the NI Act against the appellant even though   the   factual   basis   for   raising   presumption was   not   proved   on   record   by   the   respondent  as financial capacity to advance such a huge loan was never   established   on   record   by   the   respondent   . Therefore, initial burden put upon the  respondent was never discharged and hence, respondent  had failed   to   prove   that   cheques   in   question   were issued for the legal liability of the appellant. 

17. It was further submitted that appellant in order to   establish   her   defence,   on   the   basis   of preponderance of probabilities, had also examined her daughter i.e. DW2 Seema, who has proved on record that in her presence, complainant had taken blank   signed   cheques,  copy   of   Aadhar   Card,   Pan Card  and Rs.20,000/­  in  cash for  the  purpose  of arranging of loan. However, the Ld.trial court did not   consider   the   defence   led   on   record   by   the Page: 9/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila appellant   and   wrongly   held   that   appellant     had failed   to   rebut   the   presumption.   Accordingly,   it was   concluded   by   saying   that  respondent   had failed to prove that the cheques in question were issued in discharge of any  legal liability. 

18.   In   support   of   his   submission,   Ld.counsel   for appellant   has   relied   upon   the   following judgments:­­   (1)   Vipul   Kumar   Gupta   Vs.   Vipin Gupta,   Crl.L.P.461/2011;   (2)   Amar   Singh   Mehta Vs. Sukh Ram Sharma and another, Cr.Appeal No. 49 of 2018; (3) K.Prakashan Vs. P.K.Surenderan, Appeal (Crl.) 1410 of 2007; (4)  PL Vairavan Vs. Al Selvakumar,   Crl.Appeal No. 461 & 474 of 2005; (5)   K.Subramani   Vs.   K.Damodara   Naidu, Crl.Appeal   No.   2402   of   2014;  (6)   Sanjay   Mishra Vs.   Ms.Kanishka   Kapoor   @   Nikki   and   another, Criminal  Application  No.  4694 of  2008  and   (7) Nikhil P.Gandhi Vs. State of Gujarat & 2, Crl.Misc.

Page: 10/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila Application No.968 of 2014.  

19. It was further submitted that the Ld.trial court also   did   not   take   into   account   the   fact   that complainant  was into the money lending business and   without   having   a   money   lending   license,   he could not have advanced the alleged loan to the appellant.   Therefore,   the   liability   with   regard   to alleged   cheques   in   question   was   not   legally recoverable.

20. It was further submitted that in this regard, it has   come   in   the   cross   examination  of   appellant that  complainant  had advanced monetary help to the   appellant   on   various   occasions   which   shows that complainant/ husband of respondent was into the business of money lending.   Therefore, in the absence of any money lending license, the liability with regard to cheques in question was not legal Page: 11/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila liability and hence, it could not have been said that cheques in question were issued for legal liability. Accordingly, it was concluded by submitting that in the   present   case,   since   it   was   never   proved   on record   by   the   respondent   that   the   cheques   in question were issued for discharge of legal liability, hence, Ld.trial court committed a grave  illegality by convicting the appellant for the offence under Section   138   of   the   NI   Act.   Accordingly,   it   was prayed   that   impugned   judgment   and   impugned sentence   order   be   set   aside   and   appellant   be acquitted for the offence under Section 138 of the NI Act. 

21. On  the  other hand,  Ld.counsel  for  respondent had submitted that the impugned judgment of the Ld.trial court does not call for any interference as the same has been delivered after appreciating the evidence which has come on record.  

Page: 12/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila

22. It   was   submitted   that   the   Ld.trial   court   had rightly   raised   the   presumption   against   the appellant with regard to cheques in question as the financial   capacity   of   the   respondent   to   advance loan   of  Rs.9   lac   was   never   questioned   by   the appellant in the cross examination of respondent and   appellant   herself   admitted   in   her   cross examination   regarding   there   being   cordial relations between her family and respondent and on   previous   occasions   also,   monetary   help   being extended   by   the   family   of   respondent   to   the appellant.

23. It was further submitted that the defence raised by the appellant in the present   case was rightly disbelieved by the Ld.trial court. It was submitted that   appellant   had   taken   inconsistent   defence   at various   stages   of   trial   due   to   which   her   defence Page: 13/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila was rightly dis­believed by the Ld.trial court. 

24. It was submitted that at the stage of framing of notice under Section 251 Cr.P.C., appellant never took up the defence that alongwith the cheques in question, complainant i.e. husband of respondent has   also   taken   her   Aadhar   Card,   Pan   Card   and Rs.20,000/­   in   cash.   Thereafter,   when   appellant had filed an application under Section 145(2) of the NI Act, appellant had taken a new defence that alongwith cheques in question, various documents like   Pan   Card,   Aadhar   Card,   Election   voter   card and   Rs.20,000/­   in   cash   were   taken   by complainant   i.e.   husband   of   respondent   for   the purpose of facilitation of loan. 

25. It was further submitted that although appellant had   examined   her   daughter   Seema   as   DW2   to show   that   the   aforementioned   documents   and Page: 14/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila Rs.20,000/­ in cash were taken in presence of DW2 Seema   but   testimony   of   DW2   Seema   could   not have been relied upon, as at the previous stage of trial   i.e.   at   the   stage   of   framing   of   notice   under Section  251   Cr.P.C.   and   at   the   time   of   cross examination of respondent and even while being examined   under   Section   313   Cr.P.C.,   appellant never stated on record that the cheques in question alongwith documents like Aadhar Card, Pan Card and Rs.20,000/­ in cash were taken in presence of her   daughter   Seema.   Therefore,   examination   of DW2 Seema, at the stage of defence evidence, was nothing   but   an   after   thought   and   her   testimony was rightly, not relied upon by the Ld.trial court. 

26. It was further submitted that Ld.trial court had rightly raised the presumption under Section 118 and 139 of the NI Act since appellant had admitted the   execution   of   cheques   in   question   and   also Page: 15/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila admitted that on previous occasions, she had also taken   monetary   help   from   the   family   of respondent. It was further submitted that although presumption   was   rebuttable   but   no   cogent evidence   was   led   on   record   by   the   appellant   to rebut   the   presumption.   Hence,   Ld.trial   court rightly held that it was proved on record that the cheques   in   question   were   issued   in   discharge   of legal liability. 

27. It   was   further   submitted   that   in   the   present case, there is no evidence on record to show that complainant was in the business of money lending. Therefore, there was no question of complainant to have a money lending license. 

28. It   was   submitted   that   whatever   financial   help was provided by complainant to the appellant, was on account of family relations between them and Page: 16/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila there was no evidence led on record to show that complainant was in the habit of advancing loan to other   persons   also   on   interest.   Therefore, extending   of   financial   help   by   complainant    to appellant on account of family relations cannot be termed as " act of money lending".  Hence, on this ground   also,   impugned   judgment   requires   no interference. 

29. It   was   concluded   by   submitting   that   the financial   capacity   of   the   complainant      was established   on   record   by   the  respondent  by deposing to the fact that loan was advanced to the appellant by selling land and even the name of the purchaser   i.e.   Ramesh   was   deposed   in   the   cross examination   by   respondent   and   she   had   also volunteered to produce the said purchaser Ramesh before   the   Ld.trial   court.     However,   appellant never   made   request   to   the   Ld.trial   court   for   the Page: 17/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila purpose   of   summoning   of   sale   documents   or purchaser   i.e.   Ramesh   which   means   that   fact   of selling   of   land   was   in   the   knowledge   of   the appellant and that is why appellant chose not to summon   the   purchaser   Ramesh   even     though respondent had volunteered to produce him before the  Ld.trial court.   Accordingly, it was submitted that   the   appeal   filed   by   the   appellant   does   not disclose any ground which calls for interference in the   impugned   judgment   and   the   impugned sentence order. Accordingly, a prayer was made to dismiss the appeal. 

30. I   have   considered   the   rival   submissions   and have carefully perused the trial court record and the evidence led on record. 

31. Only  two  questions  arises for  consideration   in the   present   appeal.   Firstly,   whether   the   cheques Page: 18/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila were   issued   in   discharge   of   legal   liability   or   not and   secondly,   whether  complainant  was   into   the business   of   money   lending   and   hence,   required license to do the business of money lending? 

32. I   shall   first   take   up   the   issue   as   to   whether cheques were issued for discharge of legal liability or not?

33. In   the   present   case,   the   admitted   facts   which have come on record are as follows:­­

(a) The   signing   of   cheques   in   question   by   the appellant is admitted.

(b) Appellant   and   family   of   respondent     being   in cordial   relations   and   respondent/complainant providing   monetary   assistance   to   the   family   of appellant from time to time in the past also stood admitted. 

(c) The   fact   of   complainant   having   the   financial Page: 19/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila capacity   to   advance   loan  of   Rs.9   lac   also   stood admitted by the appellant. The reason for the same is that in the cross examination of respondent, a specific   question   was   put   by   the   appellant   as   to from where the loan amount was arranged. To the said question,   respondent had answered that her husband i.e. complainant had arranged the amount by selling the land for Rs.10 lac to one Ramesh and she can also produce the purchaser i.e. Ramesh in the Ld.trial court. 

34. Although   respondent   had   volunteered   to produce the purchaser Ramesh before the Ld.trial court   but   appellant   never   made   any   request   for summoning   of   purchaser   Ramesh   or   for summoning   of   relevant   sale   documents   to   rebut the presumption under Section 139 of the NI Act.

35. In   the   facts,   since   the   witness   to   the   sale Page: 20/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila transaction was available  and had come into the knowledge of the appellant but still if he was not summoned,   then   an   adverse   inference   has   to   be drawn against appellant under Section 114 of the Indian Evidence Act, 1872 that in case, purchaser Ramesh was summoned, then he would not have supported the defence of the appellant.

36. Hence,   all   these   facts  show   that   appellant admitted   that   complainant   had   the   financial capacity to advance loan as he had sold his land to one Ramesh for Rs.10 lacs.

37. The   handing   over  of   blank   signed   cheques  by appellant to the complainant also do not prove on record   that   the   cheques  were   not   issued   in discharge of legal liability. 

Page: 21/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila

38.   The   cheques   in   question   Ex.CW1/B1   and Ex.CW1/B2 are of Rs.4,50,000/­each. The signing of the cheques by the appellant and handing over the same to complainant   is not in dispute as the said   fact   has   been   admitted   by   appellant   in   her statement under Section 313 Cr.P.C.  Since signing of the cheque by the appellant is an admitted fact, therefore,   it   is   presumed   that   the   cheques   were issued in discharge of the legal liability.  

39.  I am fortified in my reasoning by the judgment delivered by Hon'ble Delhi High Court in case re­ ported as M/s.The Jammu and Kashmir Bank Vs. Abhishek   Mittal,   2012(1)   DCR   189  wherein   it was held that a person issuing a blank cheque is supposed to understand the consequences of doing so.   He   cannot     escape   his   liability   only   on   the ground that blank cheque has been given by him. It was further held in Para 7 as follows:­­  Page: 22/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila     Para   7  ­­   "Once   issuance   of   the cheque has been admitted or stands proved,   a   presumption   arises   in favour   of   the   holder   of   the   cheque that   he   had   received   the   cheque   of the nature referred to under Section 138 of the NI Act for the discharge in whole or in part of any debt or any other liability. This presumption arises in favour of the holder under Section   139   of   the   NI   Act   which envisages that  it shall  be  presumed unless   the   contrary   is   proved   that the holder of a cheque  received the cheque   of   the   nature   referred   to under Section 138 of the NI Act for discharge, in whole or in part of any debt or any other liability. Of course, this   presumption   is   a   rebuttable presumption   and   same   can   be rebutted only by the person who had drawn the cheque".

40. Accordingly, a presumption arises in favour of the respondent/complainant and against appellant Page: 23/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila that   the   cheque   had   been   issued   in   discharge   of legally enforceable debt or liability.  It was for the appellant to rebut the presumption which she has miserably failed to do so.

41. In the present case, the defence of the appellant was that cheques in question were given to the re­ spondent/complainant for the purpose of arrang­ ing for a loan from bank for the purpose of pur­ chasing of property by appellant. 

42. In   the   opinion   of   this   court,   the   said   defence was   never   established   on   record,   even   on preponderance   of   probabilities   by   the   appellant. The reason for the same is that the defence taken up by the appellant, at various stages of trial, has been   inconsistent   and,   therefore,   cannot   be believed.  

Page: 24/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila

43. At the stage of framing of notice, appellant had never   taken   up   the   defence   that   apart   from cheques   in   question,   various   identification documents   like   Aadhar   Card,   Pan   Card,   Election Voter   Card   and   Rs.20,000/­   in   cash   were   given. However, during the course of cross examination of respondent and at the stage of statement under Section   313   Cr.P.C.,   the   appellant   made   an improvement  in   her   defence   by   suggesting   to respondent    that   apart   from   four   blank   signed cheques,   appellant   has   also   given   identification documents   like   Pan   Card,   Aadhar   Card   and Rs.20,000/­ in cash for the purpose of facilitation of loan to respondent/complainant.

44. At the stage of cross examination of respondent and at the stage of examination of appellant under Section 313 Cr.P.C., no defence was taken up by the appellant that the above mentioned documents Page: 25/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila and Rs.20,000/­ in cash were given in the presence of DW2 Seema, who happens to be the daughter of appellant. 

45. It was only at the stage of defence evidence that it   came   on   record   for   the   first   time   that   DW2 Seema was the witness to the handing over of four blank   signed   cheques,   identification   documents and   Rs.20,000/­   in   cash   to   the complainant/respondent  for   the   purpose   of arranging of loan from the bank.

46. The   examination   of   DW2   Seema   to   the   effect that   she   was   aware   of   the   handing   over   of   loan documents,   is   nothing   but   an   after   thought. Therefore,   in   the   light   of   inconsistent   defence taken   up  by  the  appellant  at  different stages  of trial,  her  defence was never established on record on   preponderance   of   probabilities   and   Ld.trial Page: 26/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila court rightly held that appellant had failed to rebut the presumption under Section 139 of the NI Act. 

47. Therefore,   respondent  had   proved   on   record that   cheques   in   question   were   issued   by   the appellant in discharge of her legal liability towards the loan of Rs.9 lacs.

48.   Now,   I   shall   take   up   the   various   judgments relied   upon   by   the   Ld.counsel   for   appellant   in support of his contention that the cheque was not issued in discharge of legally enforceable liability. 

49. The   judgments   relied   upon   by   the   Ld.counsel for   appellant   delivered   in  Vipul   Kumar   Gupta's case   (supra)   and   Sanjay   Mishra's   case   (supra) are not applicable to the facts of the present case as   in   the   cross   examination   of   respondent, Ld.counsel   for   appellant   had   never   suggested   to Page: 27/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila her   that   deceased   Mukesh   Kumar,   who   is   the complainant in this case, had not shown the loan amount in the income tax return or that he does not file any income tax return. 

50.  Since the fact of deceased Complainant Mukesh Kumar being an income tax payee and not showing the   loan   amount   in   question   in   his   income   tax return was never brought on record, therefore, it is difficult   to   hold   that   the   loan   amount   was unaccounted cash.  

51. Even assuming that deceased Complainant was an income tax payee and the loan amount was not reflected in the income tax return for the relevant year,   then   also   liability   will   not   become unenforceable.   I am fortified in my reasoning by the judgment of the Hon'ble Bombay High Court delivered in Bipin Mathurdas Thakkar Vs. Samir Page: 28/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila @   Sameer   Dessai,   Crl.Revision   Application   No. 53   of   2014   decided   on   05.02.2015,     2015 ALLMR (CRI) 4172. 

52. In   the   said   case,   the   Hon'ble   Bombay   High Court had disagreed with the findings of  Sanjay Mishra's   case   (supra)  and   held   that   there   is   no provision   of   Income   Tax   Act   which   makes   an amount   not   shown   in   the   income   tax   return unrecoverable.   The   relevant   paras   of   the aforementioned   judgment   are   reproduced   herein below.

"17:­­   The   observations   in   the   case   of "Sanjay Mishra" (supra) with regard to   unaccounted   cash,   are   based   on the judgment of the Hon'ble Supreme Court   in   the   case   of   "Krishna Janardhan   Bhat   Vs.   Dattatraya G.Hegde"   reported   in   2008(4)   SCC
54.   In   the   case   of   "Krishna Janardhan Bhat" (supra), it was held that   the   existence   of   legally Page: 29/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila enforceable debt was not a matter of presumption   under   Section   139   of the   NI   Act.   However,   the   above observation   in   the   Judgment   in   the case   of   "Krishna   Janardhan   Bhat"

(supra) has been overruled by a three judge Bench of the Supreme Court in the case of "Rangappa" (supa). In the said   case   of   "Krishna   Janardhan Bhat" (supra), decided by two judge Bench  of   the   Supreme   court,   it  was further   held   that   advance   of   more than   Rs.20,000/­   was   to   be   made only   by   way   of   an   account   payee cheque.   However,   in   the   case   of "Rangappa"   (supra),   decided   by   the three judge Bench of the Apex Court, an advance of Rs.45,000/­ was made in cash in spite of which the Hon'ble Supreme   Court   proceeded   to   uphold the conviction. Thus, the judgment in the   case   of   "Krishna   Janardhan Bhat"   (supra),with   regard   to   the advance   of   cash   amount   of   more than Rs.20,000/­without 15 Cr.Rev. 53/14  showing   the   same   in   income tax   returns,   has   been   impliedly Page: 30/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila overruled.   Therefore,   it   cannot   be said that merely because the amount advanced   was   not   shown   in   the income   tax   returns,   Section   138   of the NI Act is not applicable. 

19.   The   learned   Single   Judge   in Criminal Appeal No. 6 of 2012 has observed that there is no provision of Income   Tax   Act,   which   makes   an amount not shown in the income tax returns   unrecoverable.   It   has   been observed   that   if   some   amounts   are not accounted for, the person would be visited with the penalty or at times even   prosecution   under   the   Income Tax   Act,   but   it   does   not   mean   that the   borrower   can   refuse   to   pay   the amount   which   he   has   borrowed simply,   because   there   is   some infraction   of   the   provisions   of   the Income   Tax   Act.     It   is   further observation   that   infraction   of provisions  of  Income  Tax  Act would be a matter between the revenue and the   defaulter   and   advantage   thereof cannot be taken by the borrower. It Page: 31/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila has   been   held   that   to   say   that   an amount  not   disclosed   in  the   income tax   returns   becomes   irrecoverable would   itself   defeat   the   provisions   of Section   138   of   the   NI   Act.   The learned Single Judge has respectfully disagreed with the observations made in   the   case   of   "Sanjay   Mishra"

(supra).   No   doubt,   the   above judgment   dated   19.07.2013,   passed in   Criminal   Appeal   No.6   of   2013, has   been   set   aside   by   the   Hon'ble Supreme   Court,   in   Criminal   Appeal No. 614­615 of 2014. But the setting aside   was   because   the   appellant (accused) had already paid the sum of   Rs.4,00,000/­   in   favour   of   the complainant.   The   findings   of   the learned Single Judge in said Criminal Appeal No. 6 of 2013 have not been set   aside.   I   am   in   respectful agreement   with   the   observations made   by   the   learned   Single   Judge ( R.C.Chavan, J) in Criminal Appeal No. 6 of 2012. I am of the view that the provision of Section 138 of the NI Act   does   apply   to   the   present Page: 32/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila transaction".

53. Further,   the   judgment   relied   upon   by   the Ld.counsel for appellant delivered in  Amar Singh Mehta's   case   (supra)   and   K.Prakashan's   case (supra) are also not applicable in the given facts as in   the   present   case,   respondent   had   proved   on record that deceased complainant had the financial capacity to advance the loan. 

54. The judgment relied upon by the Ld.counsel for the   appellant   delivered   in  PL   Vairavan's   case (supra)  is also not applicable to the facts of the present case as in the said judgment, accused had proved on record the discharge of loan as he had proved return of the loan amount through various bank drafts.

55. The judgment relied upon by the Ld.counsel for Page: 33/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila appellant   delivered   in    K.Subramani's   case (supra)  is also not applicable as in the said case, complainant being a government servant had not complied with the conduct rules by informing the Government Department regarding lending of loan to the accused. 

56.  Further, complainant also had claimed that he had advanced the loan by selling his land but the sale   price   was   not   mentioned.   Further,   the deposition   of   wife   of   complainant   in   some   other case     was   also   against   complainant   as   she   had deposed that accused had not taken any loan from the complainant. 

57. The   said   judgment   is   not   applicable   as complainant   in   the   present   case   is   not   a government   servant   and   secondly,   respondent   / complainant   had   disclosed   about   the   name   of Page: 34/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila purchaser and the amount of sale transaction.  

58. Now, I shall take up the issue as to whether any money   lending   license   was   required   by   the respondent/complainant or not? 

59. For the purpose of establishing on record that complainant was in the business of money lending, it was imperative for the appellant to have brought something   on   record   to   show   that   apart   from appellant,   complainant  had   advanced   loan   on interest to other persons also. 

60. The  respondent  had   categorically   denied   that her deceased husband had advanced loan to any other   person   apart   from   the   appellant.     The respondent also denied that they had received any kind of interest from the appellant against the loan in question.

Page: 35/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila

61. No suggestion was given by the appellant that apart   from   appellant,   deceased   husband   of respondent had also advanced loan to some other persons also nor any person was examined in this case, to show that husband of the respondent had advanced   loan   on   interest   to   that   person. Therefore, nothing has been brought on record in the cross examination of  respondent to show that deceased   husband   of   the   respondent   was   in   the business of money lending and hence, required the money lending license to advance loan. Therefore, it cannot be said that liability of the cheques was unenforceable   as   complainant   was   not   having   a money lending license. 

62. In   the   light   of   above  discussion,   the   grounds raised in the appeal do not call for any interference in the impugned judgment and impugned sentence Page: 36/37 CA No.73/17 Smt.Prakasho Vs. Mukesh Kumar (since deceased) through his wife Smt.Promila order   of   the   Ld.trial   court.  The   appeal   is accordingly dismissed.

63. Appellant be taken into custody to serve the sentenced as awarded by the Ld.trial court. 

64. A copy of judgment be given free of cost to the appellant.

65. Trial court record be sent back alongwith a copy of judgment.

66. Appeal file be consigned to record room. 

Digitally signed by VIKAS  
                                           VIKAS        DHULL

                                           DHULL        Date:
                                                        2018.05.10
                                                        15:10:44 +0530

Announced in the open court         (Vikas Dhull)
Dated : 10.05.2018       Spl. Judge (PC Act) CBI­03
                                     Dwarka/New Delhi



                                                        Page: 37/37