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Bangalore District Court

K. Anand vs Nitin Kailas Bagal on 7 February, 2025

KABC020037022021




             IN THE COURT OF ADDL. CHIEF JUDICIAL
                 MAGISTRATE, BENGALURU CITY.
                           (SCCH-6)
        Present:   Smt. Chetana S.F.
                                     B.A., L.L.B.,
                   IV Addl., Small Cause Judge & ACJM,
                   Court of Small Causes, Bengaluru.

                         CC. No.933/2021

            DATED THIS THE 7th DAY OF FEBRUARY, 2025
 COMPLAINANT/S       Sri. K. Anand,
                     S/o. S. Krishna Murthy,
                     Aged about 38 years,
                     No.149/150, 2nd Floor,
                     2nd Stage, 1st Cross,
                     Okalipuram,
                     Bengaluru-560021.
                     (By Sri. C. Shankar Reddy, Advocate)
                              -Vs-
 ACCUSED             Sri. Nitin Kailas Bagal,
                     S/o. Kailas Shankar Bagal,
                     Aged about 44 years,
                     Residing at No.38/2, 3rd Floor,
                     Mallikarjunappa Lane,
                     K.R.Shettypet, J.M.Road Cross,
                     Bengaluru 560 002.
                     Also available for service at:
                     Shamburaje Refinery
                     Gold and Silver,
                     No.9/3, M.C. Lane, 29th Cross,
                     Kilari Road, Bengaluru-560053.
                     (Sri. Thushanath C.V., Advocate)
 SCCH-6                          2                  CC No.933/2021


                     -: J U D G M E N T :-

     This is a complaint filed by the complainant U/Sec.200 of

Cr.P.C. for the offence punishable under Sec.138 of the N.I. Act

as against the accused praying to punish the accused for the

said offence.

    2.    The case of the complainant is that, the accused is

known to the family of the complainant for the last several

years. The accused is the owner of Shamburaje Refinery dealing

with Gold and Silver materials and is a seller of raw gold. It is

further submits that accused has purchased 1 Kg. 200 Grams

of raw gold from the complainant through bill No.131 on

05.04.2017 for a total value of Rs.36,98,850/-. On the day of

purchase of the said gold, the accused has paid a sum of

Rs.6,98,850/- by way of cash and for the balance amount of

Rs.30 lakhs, the accused has issued 3 post dated cheques

bearing No.134631, 134632 and 134635 for a sum of Rs.10

lakhs each drawn on ICICI Bank, Avenue Road Branch,

Bengaluru. At the time of issuing the said cheques, the accused

had informed the complainant that the said cheques can be
 SCCH-6                        3                 CC No.933/2021


presented on the dates mentioned on each of the said cheques

or the accused would offer money in cash and take back the

cheques once the payment is made in advance. On the dates

mentioned in the 2 cheques, the accused came over to the

complainant and paid the said amount of Rs.20 lakhs in cash

and took back 2 of the said cheques, which were issued by the

accused. The cheque retained by the complainant is bearing

No.134632 dated 22.09.2020 drawn on ICICI Bank, Avenue

Road Branch, Bengaluru for a sum of Rs.10 lakhs. When the

accused paid Rs.20 lakhs, there was a written memorandum of

understanding that accused had admitted that he is liable to

pay a sum of Rs.10 lakhs and for that he has issued the above

said cheque. The said agreement was got prepared by the

accused and handed over to the complainant as an assurance.

One month prior to 22.09.2020, complainant contacted the

accused several times and informed the accused above said

cheque would be presented for encashment. For that accused

assured the complainant that said cheque would be honoured

without fail. Believing the assurance of the complainant, the
 SCCH-6                             4                    CC No.933/2021


complainant presented the aforesaid cheque through his banker

Karur Vysya Bank for encashment and same has been

dishonored and returned with endorsement "Funds Insufficient"

on 23.09.2020. The Complainant got issued legal notice dated

09.10.2020 through RPAD . The accused neither replied to the

notice nor cleared the cheque amount and as such, accused has

failed and neglected to discharge debt to the complainant.

Accordingly, the accused has committed an offence punishable

under Sec.138 of N.I Act. Hence, this complaint.

    3.    After    recording    the    sworn     statement    of    the

complainant   by    way   of   affidavit   and   also   verifying   the

documents, cognizance was taken against the accused for the

offence punishable under Sec.138 of N.I. Act. The accused

appeared before this Court through his counsel and enlarged on

bail and his plea was recorded. The accused pleaded not guilty

and claimed to be tried. Hence, the case was posted for evidence

of the complainant.

    4.    The complainant got examined himself as PW.1 and
 SCCH-6                               5                  CC No.933/2021


got marked 16 documents as Exs.P.1 to P.16. Thereafter, the

case was posted for recording the statement of accused under

Sec.313 of Cr.P.C. In the statement U/s. 313 Cr.P.C., the

accused has denied all the incriminating evidence appearing

against him and claimed to be tried and examined himself as

DW.1 and got marked 6 documents as Exs.D.1 to D.6.

    5.       Heard the arguments of both side and Perused the

records.

    6.       The following points arise for my consideration:

             1.   Whether the complainant proves that the
                  cheque     No.134632    dated    22.09.2020
                  amounting to Rs.10 lakhs drawn on ICICI
                  Bank, Avenue Road Branch, Bengaluru-
                  560009, issued by the accused has been
                  dishonored on the ground of 'Funds
                  Insufficient' on 23.09.2020 and even after
                  receiving the intimation regarding the
                  dishonor of cheque failed to pay the cheque
                  amount within the stipulated period and
                  thereby the accused has committed an
                  offence punishable under Sec.138 of N.I. Act?

             2.   What order?


    7.     My findings on the above points are as under
 SCCH-6                           6                   CC No.933/2021


                Point No.1: In the Negative,
                Point No.2: As per final order for the
                             following:

                         -: R E A S O N S :-


    8. POINT NO.1:- In view of the present legal position as

held by our Hon'ble High Court as well as Apex Court of

India in a catena of decisions as well as relevant provisions

of the Act, this court has to see whether the complainant

has complied all the requirements as contained in Sec.138

of NI Act so as to bring home the guilt of the accused for

the alleged offence.    If so, whether the accused is able to

rebut the legal presumption available to the complainant

under Sec.139 of the Act by adducing probable defense or

not. However, it is held by the full bench of our Apex Court

in the case of    Rangappa Vs. Mohan reported in 2010 (1)

DCR 706 that;

             "The Statutory presumption mandated
             by sec.139 of the Act, does indeed in-
             clude the existence of a legally en-
             forceable debt or liability. However,
             the presumption U/S 139 of the Act is
             in the nature of a rebuttable presump-
 SCCH-6                              7                    CC No.933/2021


               tion and it is open for the accused to
               raise a defence wherein the existence
               of a legally enforceable debt or liability
               can be contested".

    9.   Therefore, in view of the above decision, once the

cheque    is   admitted,     the    statutory     presumption     would

automatically fall in favour of the complainant that, the alleged

cheque   was    issued     for   discharge   of   an   existing   legally

enforceable debt or liability against the accused and the burden

will shift on to the accused to rebut the same.

          INGREDIENTS OF OFFENCE AND DISCUSSION:-

    10. Before dwelling into the facts of the present case, it

would be apposite to discuss the legal standards required to be

met by both sides. In order to establish the offence under

Section 138 of NI Act, the prosecution must fulfill all the

essential ingredients of the offence. Perusal of the bare provision

reveals the following necessary ingredients of the offence:-

                First Ingredient: The cheques were
                drawn by a person on an account
                maintained by him for payment of
 SCCH-6                   8                    CC No.933/2021


         money and the same is presented for
         payment within a period of 3 months
         from the date on which it is drawn or
         within the period of its validity;


         Second Ingredient: The cheques were
         drawn by the drawer for discharge of
         any legally enforceable debt or other
         liability;


         Third Ingredient: The cheques were
         returned unpaid by the bank due to
         either insufficiency of funds in the
         account to honour the cheque or that
         it exceeds the amount arranged to be
         paid    from   that   account    on      an
         agreement made with that bank;


         Fourth Ingredient: A demand of the
         said amount has been made by the
         payee or holder in due course of the
         cheque by a notice in writing given to
         the drawer within thirty days of the
         receipt of information of the dishonour
         of cheque from the bank;
 SCCH-6                          9                  CC No.933/2021




               Fifth Ingredient: The drawer fails to
               make payment of the said amount of
               money within fifteen days from the
               date of receipt of notice.

                      APPRECIATION OF EVIDENCE-
    11. The accused can only be held guilty of the offence

under Section 138 NI Act if the above-mentioned ingredients are

proved by the complainant co-extensively. Additionally, the

conditions stipulated under Section 142 NI Act have to be

fulfilled. Notably, there is no dispute at bar about the proof of

only first, third, and fifth ingredient. The complainant had

proved the original cheque vide Ex.P.1 which the accused

person had not disputed as being drawn on the account of the

accused. It was not disputed that the cheque in question was

presented within its validity period. The cheque in question was

returned unpaid vide return memo dated 23.09.2020 vide

Ex.P.2 due to the reason, "Payment stopped by drawer". The

complainant had proved the service of legal demand notice

dated 09.10.2020 vide Ex.P.3 by bringing on record the postal
 SCCH-6                             10                     CC No.933/2021


receipts vide Ex.P.4 & 5 and postal acknowledgment vide Ex.P.6

and courier receipts vide Exs.P.7 & 8. Thus, there is a dispute

only with regard to the second          ingredient to the offence. As

such, the 1st,3rd,4th& 5th   ingredient of the offence under section

138 of the NI Act stands proved.

    12. As far as the proof of second ingredient is concerned,

the complainant has to prove that the cheque in question was

drawn by the drawer for discharging a legally enforceable debtor

any liability. In the present case, the issuance of the cheque in

question is not denied. As per the scheme of the NI Act, once

the accused admits signature on the cheque in question, certain

presumption are drawn, which result in shifting of onus.

Section 118(a) of the NI Act lays down the presumption that

every    negotiable   instrument        was   made   or     drawn     for

consideration. Another presumption is enumerated in Section

139 of NI Act. The provision lays down the presumption that the

holder of the cheque received it for the discharge, in whole or

part, of any debt or other liability.
 SCCH-6                           11                  CC No.933/2021


    13. The combined effect of these two provisions is a

presumption that the cheque is drawn for consideration and

given by the accused for the discharge of debt or other liability.

Both the sections use the expression "shall", which makes it

imperative for the court to raise the presumptions once the

foundational facts required for the same are proved. Reliance is

placed upon the judgment of the Hon'ble Supreme Court, Hiten

P. Dalal vs. Bratindranath Banerjee (2001) 6 SCC 16.

    14. Further, it has been held by a three-judge bench of the

Hon'ble Apex Court in the case of Rangappa vs. Sri Mohan

(2010) 11 SCC 441 that the presumption contemplated under

Section 139 of NI Act includes the presumption of existence of a

legally enforceable debt. Once the presumption is raised, it is for

the accused to rebut the same by establishing a probable

defence.

    15. The presumptions raised under Section 118(b) and

Section 139 NI Act are rebuttable presumptions. A reverse onus

is cast on the accused, who has to establish a probable defence
 SCCH-6                           12                  CC No.933/2021


on the standard of preponderance of probabilities to prove that

either there was no legally enforceable debt or other liability. In

this case, the arguments raised by the Ld. counsel for the

accused to rebut the presumption are discussed below:

          First defence: Notice not served

    16. With regard to the issuance of the notice accused has

taken the specific defence that notice has not been served to

him and in this regard accused has deposed that he was

running the shop by name Preethi Gold Polish from 2010-14

and in the year 2015, he has left the shop and went to his

native Katarkatav village at Maharashtra and started residing

there in only. When the police came to his house on

07.12.2023, he came to know about the cheque bounce case

filed by the complainant. In support of his contention, accused

has produced residential certificate Ex.D.1 and Aadhaar card

Ex.D.2, Voter I.D. card Ex.D.3. On perusal of Ex.D.1, it is a

residential certificate issued by the Sarpanch Grama Sevak

stating that he is the residents of the Katarkatav Village and the
 SCCH-6                           13                  CC No.933/2021


said certificate has been issued on 10.03.2014 on the request of

the applicant. Ex.D.2 & D.3 Voter I.D. card and election identity

card reflects that accused is the resident of Katarkatav Village of

Maharashtra. As per Ex.D.1 to 3 accused is the resident of

Katarkatav Village, as accused is the native of the Katarkatav

village. Aadhaar card and voter I.D. card will be issued in the

permanent address of the person and accordingly Ex.D.2 & 3

Voter I.D. and Aadhaar card are in the permanent address.

Merely on the basis of the Ex.D.1 to 3 it cannot be said that

accused was not at all residing in Bengaluru as on the date of

the issuance of the notice. On the other hand Ex.P.3 notice has

been served to the shop address Shambureje Refinery Gold and

Silver and also the residential address of the accused. Ex.P.4 &

5 are the postal receipts show that the notice has been issued

and Ex.P.6 postal acknowledgment clearly shows that the notice

has been duly served to the accused though accused has denied

Ex.P.6 but, has not made any attempt to prove that he has not

received the said notice. Even has not made any attempt to

examine the postman to prove that Ex.P.6 was not served to
 SCCH-6                           14                CC No.933/2021


him. Even accused has not disputed that at no point of time he

was not residing in said address mentioned in notice. Thus, it is

clear that it is last known address of accused.

    17. Moreover, in this regard, it has been held by the

Hon'ble Apex Court in the case of M/S Indo Automobiles Vs.

M/S. Jaidurga Enterprises reported in 2008 (2) DCR 499 and

also as provided under Sec.27 of the Mysore general clauses

Act, 1897. When a notice is sent to the correct address of the

addressee, even if the same is returned unserved due absence

or non-claiming or refusal of the addressee, the same amounts

to deemed service. Moreover, the very purpose of giving

statutory   notice   to   provide     an   opportunity   to   the

accused/drawer to make payment of the cheque amount and

escape from the criminal prosecution. The non-service of the

notice would be ground only in the case of the accused

admitting the liability under the cheque and pleading only

exemption from the criminal prosecution for non payment of the

cheque amount. Thus this defence of the accused is of no

consequence in the present case as he is totally denying the
 SCCH-6                             15            CC No.933/2021


liability under the said cheque.

     Second defence: No legally recoverable debt existed
                     and no Financial capacity


    18. It was argued by the learned counsel for the accused

that at any point of time, there was no transaction between the

complainant and accused. Accused had never purchased any

gold worth of Rs.36,98,850/- from the complainant. Further it

was argued that complainant has no financial capacity to

purchase gold of 1 Kg. 200 Grams. Even the complainant has

not produced any document to show that he was in possession

of 1 Kg. 200 Grams of raw gold and has not produced any

document to show that accused has purchased 1 Kg. 200

Grams of gold from the complainant. Further it was argued by

the learned counsel for the accused that there is lot of

contradiction in the version of the complainant with regard to

the date of issuance of the cheque. Further it was argued that

complainant has not approached this court with clean hands,

complainant has produced the fake bills, which does not tally

with the original bills produced by him. Even the complainant
 SCCH-6                         16                CC No.933/2021


has not produced any agreement and the MOU as stated by

him. Further it was argued that accused has stopped the

business in the year 2014 and he went to his native at

Katarkhatav Village at Maharashtra and as such notice has not

been served to the accused and as such, there is no cause of

action arosed for the complainant to lodge this complaint.

Further it was argued by the learned counsel for the

complainant that complainant being friend of the accused used

to come to the shop of the accused in between 2010-14 and he

used to sit in the cash counter and complainant might have

stolen the cheque from the middle of the cheque book. Further

accused has taken the contention that he never used to keep

the signed blank cheques in his cash box since the present

cheque in question has been cut off from the middle of the

cheque book, accused was not able to identify the same, only

when the police arrested the accused in execution of the NBW

issued by this court at his native, accused came to know about

all these facts. Even accused has completely denied that the

signatures in the Ex.P.1 cheque is not his signature. Further
 SCCH-6                           17                 CC No.933/2021


argued that cheque in question belongs to the joint account of

him and his wife and the cheque does not contain the

signatures of accused and also his wife and as such, the

complaint is not maintainable.

    19. With regard to defence that complainant has no

financial capacity to sell the gold of 1 Kg 200 Grams worth of

about Rs.36 lakhs. Further it was argued that complainant has

not produced any document to show the transaction i.e.,

purchase of the gold. In this regard on perusal of the evidence of

the PW.1, PW.1 stated that since from 15 years, he was doing

the gold and silver business and PW.1 stated that he has

purchased the gold from the other businessman and also from

the bank. Further PW.1 stated that he used to sell raw gold and

gold ornaments and the name of his shop is 'Sai Krish

Jewellers'. Further PW.1 has stated that he has document to

show that accused has purchased 1 Kg. 200 Grams of gold from

him. Thereafter on further date of hearing, complainant has

produced the notarized copy of the bill. But, as original bill was

not produced, said notarized copy of the bill was not marked.
 SCCH-6                              18                  CC No.933/2021


Thereafter complainant has produced one carbon copy of the

bill of Krish Jewellers, which was marked as Ex.P.16. The

learned counsel for the accused objected on the ground that

Ex.P.16 is not clearly legible and on the said bill 2 crossed lines

have been drawn. But, in notarized copy of bill, which the

complainant has produced earlier does not tally with Ex.P.16-

carbon copy of the bill. Hence, complainant has not approached

this court with the clean hands and created and produced the

notarized copy earlier and also thereafter, created the said bill

and produced the same. In this regard on perusal of Ex.P.16

and      also   notarized   copy   of    Ex.P.16   produced   by   the

complainant, there are lot of variations in the notarized copy

produced by the complainant and it is clear that it is not the

xerox copy of Ex.P.16. Thus, it clearly shows that complainant

has not approached this court with the clean hands. When

complainant was in possession of bills, why he has not

produced original bill or carbon copy of bill earlier. When

accused counsel has seriously objected and the court refused,

thereafter only complainant produced the carbon copy of the bill
 SCCH-6                          19                 CC No.933/2021


which was marked as Ex.P.16 but, the said bill Ex.P.16 does

not match with the notarized copy produced earlier. Further

PW.1 in the cross-examination stated that he has sent the

original copy of the Ex.P.16 to the department. Apart from this

PW.1 clearly stated that in Ex.P.16 that To transaction

mentioned as Pundalik Refineries, PW.1 has not explained as to

who is the Pundalik Refineries and to whom he has issued the

said bill. It was argued by the learned counsel for the accused

that in Ex.P.16, the cheque number is not mentioned and also

the mode of the payment and also amount paid and the balance

amount is not written. Apart from this PW.1 has not explained

who is the Pundalik Refineries. Further counsel for the accused

contended that signature of the accused in Ex.P.16 is forged by

the complainant and produced the same. On perusal of Ex.P.16,

'To' address is written as Pundalik Refineries C/o. Nithin Bagal.

Even PW.1 has not explained that what is the connection

between Pundalik Refineries and accused and who is running

the Pundalik Refineries, when accused has completely denied

and disputed Ex.P.16. Moreover, there are lot of variations in
 SCCH-6                             20                  CC No.933/2021


Ex.P.16 and the notarized copy of the bill produced by the

complainant, which creates doubt about the approach of the

complainant in the minds of the court. Complainant has not

tried to produce the original bill from the department to which

he has submitted. Atleast PW.1 has not tried to call for the said

original bill from the document.

      20. Apart from this admittedly PW.1 carrying Silver and

Gold business since 15 years, certainly he would have maintain

the    account   book   and   ledger    book   which   reflects   the

transactions of their business. PW.1 would have produced the

ledger statement or his account statement of his business to

prove that he has sold the gold of 1 Kg. 200 Grams worth Rs.36

lakhs and also to show that he has purchased gold from bank

and other businessman. Admittedly the transaction of selling

gold of 1 Kg. 200 Grams worth of about Rs.36 lakhs is a big

transaction and admittedly as per PW.1, it was on credit basis

then, certainly PW.1 would have kept the account statement or

maintained the ledger statement with regard to the transaction

on credit basis. Ordinarily in the normal course of business
 SCCH-6                         21                    CC No.933/2021


conduct when any goods are sold on credit basis, certainly each

and every businessman will keep the account of the same and

would maintain the accounts. PW.1 has not produced any such

account statements and as such an adverse inference can be

drawn against the PW.1 for not producing relevant document to

show the purchase of gold worth of about Rs.36 lakhs by the

accused on credit basis and as such, the present transaction as

alleged by the complainant appears to be doubtful.


         Third defence: Signature in cheque is not his
                          signature

    21. Accused has taken the specific defence that the

signature in the cheque is not his signature and the cheque in

question was not issued by him to the complainant and he

would not keep the signed blank cheques with him. According

to the accused, complainant being well known to him and a

friend would come oftenly to his shop and accused has kept the

cheque book in his cash box at his shop and complainant might

have stolen the cheques from the said cash box without his

knowledge. Accused came to know about theft of his cheques
 SCCH-6                          22                 CC No.933/2021


only when the warrant has been served to him. When accused

has seriously disputed the signature in the cheque, the burden

is on the complainant to prove that signature in the cheque is of

the accused. But, the complainant has not made any attempt to

prove the signature in the cheque. Apart from this Ex.P.1

cheque belongs to the joint account of the accused and his wife

Seema Bagal but, Ex.P.1 bears only the signature of the

accused only. In this regard, in the cross-examination of the

PW.1, when it was suggested to that PW.1 being a businessman

how could he take the cheque of the joint account of the

accused and his wife without obtaining the signature of the wife

of the accused, for which PW.1 stated he do not know. Even

PW.1 has not given any explanation in this regard. PW.1 simply

stated that he do not know about the joint account of the

Ex.P.1.

    22. In this regard, this court relied on the decision

Criminal Petition No.3667/2019, wherein it is held as follows:

          14. This Court also noticed a judgment of
          Telangana High Court in Kodam Danalakshmi
 SCCH-6                          23                  CC No.933/2021


         Vs. State of Telangana 3, wherein it is held, "In
         Mrs. Aparna A. Shah's case, cited by the
         learned counsel for petitioner/A.2, the Hon'ble
         Apex Court took the view that under Section
         138 of the N.I.Act, it is only the drawer of the
         cheque who can be proceeded. In the said case,
         the husband had drawn the cheque on the
         account, which was being jointly maintained
         by him and his wife. The Hon'ble Supreme
         Court held that in case of issuance of a cheque
         from joint account, a joint account holder
         cannot be prosecuted unless the cheque has
         been signed by each and every person who
         has a joint account holder.

               In the instant case, it is evident from the
         entire material placed on record, particularly,
         the   complaints    filed   by   the   respondent

No.2/complainant under Section 138 of N.I.Act r/w Sec.200 Cr.P.C., the petitioner/A.2 is merely a joint account holder and she is not the signatory to the subject cheques. On the other hand, it is culled out from the record that though the account relating to the disputed cheques is a joint account, only one signature, which appears to be of A.1, are seen on those SCCH-6 24 CC No.933/2021 disputed cheques. Penal provisions should be construed strictly, but not in a routine/casual manner. The words used in Section 138 of N.I.Act that "such person shall be deemed to have committed an offence" refers to a person who has drawn the cheque, but not any other person, except the contingencies mentioned under Section 141 of the N.I.Act. In view of the same, the submission made by the learned counsel for the petitioner/A.2 that the petitioner/A.2, who is mere joint account holder but not a signatory to the subject cheque, cannot be proceeded under Section 138 of N.I.Act, merits consideration, in as much as a joint account holder cannot be prosecuted, unless and until he/she is a signatory to the subject 15 cheque.

23. Though Ex.P.2 bank return memo has been returned for the reason 'Funds insufficient'. When accused has specifically denied the signature, PW.1 would have made attempt to prove the signature. Thus, complainant has failed to prove that the signature in the cheque is that of the accused. SCCH-6 25 CC No.933/2021

24. Apart from this complainant has produced Ex.P.9 MOU dated 12.01.2018 alleged to be executed by the accused in favour of the complainant alleging that accused has purchased gold of 1 Kg. 200 Grams from the complainant through bill No.131 on 05.04.2017 for the total value of Rs.36,98,850/- and accused has paid Rs.6,98,850/- by way of cash on 05.04.2017 and for remaining balance of Rs.30 lakhs, accused has issued 3 post dated cheques bearing No.134631, 134632 and 134635 each for Rs.10 lakhs. Thereafter, accused has paid payment of Rs.20 lakhs to the complainant by way of cash and has obtained one cheque from the complainant. But, accused has seriously disputed the said MOU Ex.P.3. Accused contended that the signature in Ex.P.9 is also not his signature. It was argued by the learned counsel for the accused that ordinarily an agreement or MOU will be made at the time of the purchase but, in the present case complainant has alleged to have entered MOU after one year of the transaction and this fact itself clearly shows that complainant has created said document for the purpose of this case. Further it was argued that ordinarily any SCCH-6 26 CC No.933/2021 agreement or MOU shall be executed in the presence of witness but, in the present case, MOU Ex.P.9 is not signed by any of the witnesses and hence, said document cannot be believable and the complainant has failed to prove the execution of Ex.P.9.

25. In this regard on perusal of Ex.P.9 certainly as rightly argued by the learned counsel for the accused it was not executed in the presence of any witness and even PW.1 has not given any reason for the same. When accused has entirely denied the signature in Ex.P.9. The burden is on the complainant to prove the execution of Ex.P.9 but, complainant has not made any attempt to prove the signature in Ex.P.9 is affixed by the signature of the accused. This fact also create doubt about the case of the complainant and the execution of Ex.P.9. Hence, complainant has failed to prove the execution of Ex.P.9 and as such, this court is not inclined to rely on Ex.P.9.

26. Accused has successfully rebut the presumptions available in favour of the complainant and proved his defence of preponderance of probabilities.

SCCH-6 27 CC No.933/2021

Conclusion:

27. In view of all the above discussion, it can be concluded that the complainant has failed to establish through cogent and convincing evidence, the fact of issuance of the cheque for discharge of legally enforceable debt or any liability, which is dishonored for want of sufficient funds. On the other hand, the accused has successfully rebutted the presumption available to the complainant through probable evidences, that would preponderate upon the evidence led by the complainant. Therefore, the accused is held to have not committed an offence punishable under sec. 138 of N.I. Act. Accordingly, Point No.1 is answered in the NEGATIVE.

28. POINT NO.2:- In view of my answer to point No.1, I proceed to pass the following:-

-: O R D E R :-
Acting under Section 278(1) of the Bharatiya Nagarik Suraksha Sanhita, 2023, accused is acquitted for the SCCH-6 28 CC No.933/2021 offence punishable under Section 138 of NI Act.
                      The bail and surety bond of the
                accused        and      surety       shall     stand
                canceled.
(Dictated to the Stenographer, transcribed and computerized by her. After her typing, corrected, signed and then pronounced by me in open Court this the 7 th day of February, 2025).
(CHETANA S.F.) IV Addl., Small Cause Judge & ACJM, Court of Small Causes, Bengaluru.
ANNEXURE List of witnesses examined for the Complainant:
PW.1 :- K. Anand List of witnesses examined for the accused:-
DW.1 :- Nithin List of documents marked for the Complainant:-
       Ex.P.1          : Cheque
       Ex.P.1(a)                :   Signature of accused
       Ex.P.2                   :   Bank Endorsement
       Ex.P.3                   :   Legal Notice
       Ex.P.4 & 5               :   Postal Receipts
       Ex.P.6                   :   Postal acknowledgment
       Ex.P.7 & 8               :   Courier receipts
       Ex.P.9                   :   MOU dated 12.01.2018
       Ex.P.10                  :   CC       of     judgment                      in
                                    C.C.No.2047/2021
 SCCH-6                            29                 CC No.933/2021



     Ex.P.11 & 12        :   CC of GST Certificate along with
                             Form No.4 and cancellation of GST
(It was marked subject to dispute by the learned counsel for the accused) Ex.P.13 : Copy of VAT Certificate (It was marked subject to dispute by the learned counsel for the accused) Ex.P.13(a) : Original copy of VAT Certificate Ex.P.14 : CC of rental agreement (It was marked subject to dispute by the learned counsel for the accused) Ex.P.14(a) : Original copy of rental agreement Ex.P.15 : Visiting card of accused shop Ex.P.16 : Cash receipt List of documents marked for the accused:-
     Ex.D.1         :   Residence Certificate
     Ex.D.2         :   Notarized copy of Identity card
     Ex.D.3         :   Notarized copy of Aadhaar card
     Ex.D.4         :   Requisition to the bank Manager
     Ex.D.5 & 6     :   CC of complaint and affidavit in PCR
                        No.6545/2020

                                     (CHETANA S.F.)
                             IV Addl., Small Cause Judge &
                             ACJM, Court of Small Causes,
                                       BENGALURU.
 SCCH-6   30   CC No.933/2021