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Bangalore District Court

Sri C.S.Venkatesh vs Sri Rangaswami on 6 June, 2016

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

            Dated this the 6th       day of June, 2016.

   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. 11570/2015

Complainant             :      Sri C.S.Venkatesh,
                               Son of Siddarangaiah,
                               Aged about 30 years,
                               R/at No. 17, First :F: Cross,
                               8th Main, Lakshmanagar,
                               Hegganahalli,
                               Bangalore - 560 091.


                               (By Sri.N.D.Krishnamurthy.Adv.)
                      V/s.
Accused                      : Sri Rangaswami,
                               Son of Gangaiah,
                               Aged about 47 years,
                               R/at Marenahalli villae,
                               Magadi Main Road,
                               Tavarekere hobli,
                               Bangalore south taluk,
                               Bangalore

                               (By Sri B.N.Shiva kumar,.Adv.)

Date of Institution            06-04-2015.

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

Plea of the accused            Pleaded not guilty
                                  2                  C.C.No.11570/2015.



  Final Order               Accused is convicted.
  Date of Order           : 06.06.2016.



     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 submits that the accused is friend of the

complainant . The accused is doing the sand selling business and

also the accused had own lorry No.KA-25-8718. The complainant

has also doing same business and also the complainant had own

lorry to the year of 2014 the accused has some legal necessity and

loss of the sand selling business and also required the amount to

hospital expenses of the accused mother illness. In this regard at

that time, the accused had met the complainant and the accused

had requested for financial help and asked hand loan for

Rs.8,00,000/-.    The complainant being a friend of the accused

and the complainant herein agreed to led money to the accused

for Rs.6,50,000/- with together bank interest. At the time of the

requesting the hand loan amount, the accused has informed to
                                 3                 C.C.No.11570/2015.



the complainant that the accused has selling his family land to

one Harish and also the accused and his family members are

executed the sale agreement to one Harish and also the accused

has given the copy of Sale Agreement and also RTC in respect of

the land property to the complainant. On the basis of the said

documents the complainant has agreed to give the hand loan

amount with interest. In order to arrange for the said hand loan

amount to give the accused, the complainant has withdrawn the

amount    from   the   complainant   account,   the   amount     of

Rs.3,00,000/- on 01-07-2014 and also taking the amount from

the complaint     father's the amount of Rs.3,50,000/- and

thereafter the complainant was lend the hand loan amount of

Rs.6,50,000/- on 02-07-2014. At that time accused has assured

to return the loan amount with interest, within six months. After

completion of six months period, the complainant demanded the

accused to repay the said amount. Accused requested some more

time and assured to return without fail and repay the aforesaid

hand loan amount to the complainant. Thereafter, the accused

has not available and always the accused has intentionally, one or

the other way dodging to repay the hand loan amount. At last

after so many reminders given to accused by the complainant, the

accused has issued a cheque bearing No.570829 dated 10-02-
                                    4                    C.C.No.11570/2015.



2015 for sum of Rs.7,00,000/- drawn on Corporation bank,

Nagarabhavi Branch, Bangalore - 560 072. At the time of issuing

the   cheque   the    accused     has    mentioned    the   amount     of

Rs.7,00,000/- because at the time of receiving the hand loan

amount the accused has agreed to give bank interest. The

complainant presented the aforesaid cheque for encashment

through his Banker State Bank of India, Nagarabhavi II Stage,

Bangalore. The said cheque is dishonoured and returned with the

reasons   "payment      stopped     by    the    drawer"    vide    bank

memorandum        dated     11-2-2015.          Thereafterwards,      the

complainant got issued legal notice on 02-03-2015                  to the

accused, calling upon the accused to pay the cheque amount with

interest . The notice sent by RPAD was returned on 26-3-2015

with shara " the party is not in village . Inspite of issuance of

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

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

punish the accused in accordance with law and to award suitable

compensation as per Sec.357 of Cr.P.C with interest at 24% p.a.

calculated from 10-2-2015 , till date of payment, 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
                                  5                  C.C.No.11570/2015.



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

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

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

fully cross examined by the accused counsel and he wanted to

put similar question which was earlier put to the witness . Hence,

this court rejecting the prayer of accused counsel to lead further

cross-examination of PW-1 and hence, further cross-examination

of PW-1 taken as NIL and this PW-1 has been fully cross-

examined by the accused counsel and thus complainant closed

his side evidence.


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

Cr.P.C. in which, he totally denied the entire case of complainant .

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

Oath and got marked Ex.D 1 to Ex.D3 and this DW-1 has been

fully cross-examined by the complainant counsel and thus closed

his side defence evidence.


     5. In support of the case of complainant, the Ln.counsel for

complainant submitted written arguments by narrating the facts

and circumstances of the case and submits that the complainant

had fulfilled all the ingredients of the offence punishable u/s. 138
                                   6                  C.C.No.11570/2015.



of NI Act and punish the accused in accordance with law. In

support of his contention, he relied on the decisions reported in :


     2015(4) KCCR 3938

     AIR 2010 SC 1898

     AIR 2009 SC 568

     AIR 2004 SC 408

And deposition copy of CC No. 12712/2015. Accordingly, he prays

for convicting the accused in accordance with law.


     6 . In support of the case of accused, the Ln.counsel for

accused submitted written arguments by narrating the facts and

circumstances of the case and in support of his contention, he

relied on the decisions reported in : 2013(3) KCCR 1940 and

2010(5) KCCR SN. 435.       Hence, he prays for acquittal of       the

accused in accordance with law.


     7. In order to prove the case of complainant,                 the

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

affidavit. In which, he reiterated complaint contention and got

marked Ex.P1 cheque alleged to be issued by the accused and

identified the signature of the accused as per Ex.P1(a).         This

issuance of cheque in favour of complainant for discharge of legal

liability has been disputed by the accused. Further got marked
                                           7                      C.C.No.11570/2015.



Ex.P2 is an endorsement issued by the bankers stating that Ex.P1

cheque was dishonoured due to ""payment stopped by the

drawer".     Ex.P3 is the copy of legal notice . This notice does

contain the signature of both complainant and his counsel . Ex.P4

is the RPAD postal receipt. Ex.P5 is the copy of letter given to the

post master asking for acknowledgement . Ex.P6 is the RPAD

postal cover is returned with the postal shara "                F «¼ÀÁ¸ÀzÁgÀgÀÄ Hj£À°è

E®èªÁV ªÁ¥À¸ï ªÀiÁqÀ¯ÁVzÉ . Ex.P6(a) is notice in it. Ex.P7 is the pass book of State

Bank of India stands in the name of complainant to show that the complainant

had a money transaction with the bankers.


        8. The accused has denied the entire case of complainant .

In support of his denial, he lead his evidence as DW-1 on Oath .

In which he has stated that , he do not know about this

complainant but in the month of 8th Feb.2015 , he asked his

friend Madiyappa for loan of Rs.50,000/-. At that time, he

brought the accused to one Chikkanna and the said Chikkanna

advanced loan amount and asked to give two blank cheques for

the purpose of security. Thereafterwards the said Chikkanna did

not return the said cheque and he asked the Harish who is

working with the Chikkanna as a Lorry driver and he came to

know that the said Harish has filed the suit O.S.No.952/2014 on
                                 8                C.C.No.11570/2015.



the file of Civil Judge,Magadi for recovery of amount. Further by

misusing of another cheque issued as a security through one

Dilip filed cheque bounce case against this accused in C.C.No.

12712/2015 on the file of this court.   The said Harish brought

both the complainant in the said case through his Bike No.KA-03-

HX-999 at that time, this accused took photograph of them for

that, got marked Ex.D1 is the C.D. and also typed copy of Audio

C.D. recorded between the Ramesh and Chikkanna to show that

alleged cheque was not issued to this complainant . Ex.D2 is the

"B" Register extract of the said Bike . Ex.D2(a) is the receipt

issued by the Bangalore One Authority. Ex.D3 and Ex.D4 are the

colour photo to show that this      complainant is with the said

Harish. Ex.D3(a) and Ex.D4(a) are the C.D.s of the said photo.

Hence, the accused contended that this accused has not issued

any cheque in favour of the complainant etc..


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

the cross-examination, he admitted that due to loss of sand

business , he sold away his lorries. Further he admitted that his

mother was suffering from Cancer. But he denied that for the

purpose of giving treatment to his mother, he was in need of

money . But he has stated that his mother was suffering from

Cancer during the year, 2004. For that. he given a treatment in
                                 9                     C.C.No.11570/2015.



Bangalore in various hospital and he made an expenditure of

Rs.Six lakhs in the year, 2004 and his mother was died during

the year, 2015 and he admitted that he knows one Yathish ,

Dinesh , Narayanappa , Subbarayappa , Mahesh and Manjunath.

All of them are doing sand business with the help of Lorries.

Further he admitted that the address stated on the Ex.P6 postal

cover belongs to him and used to go to his residential house on

every day. In his absence any postal cover comes to his address,

his family members were taken and he do not know local post

man and he denied that as per Ex.P6 postal cover was comes to

his address , local post man waited for 13 days to give the RPAD

postal cover . But he admitted that signature found on Ex.P1

cheque and also cheque belongs to the accused but he denied

that this cheque was issued to the complainant for discharge of

legal liability. For misusing of the alleged cheque in question by

Chikkanna and Harish , he has not lodged any complaint against

them. As per Ex.D3 and Ex.D4 photos are took at the compound

wall of this court out of Annayappa mobile phone . At the time of

taking the photos, he has not obtained permission from them as

per   Ex.D3   and   Ex.D3(a)   are   the   receipts     obtained     at

Sunkadakatte and he denied rest of the contention of complainant

stating that alleged cheque was issued for discharge of legal
                                  10                 C.C.No.11570/2015.



liability   but he has taken untenable contention without giving

corroborative evidence to the case of accused.


      10.As per the defence taken by the accused, accused

counsel cross-examined the PW-1. In the cross-examination , he

tried to elicited that alleged cheque was issued for discharge of

legal liability and also after dishonour of the cheque , legal notice

was issued to the accused. The accused intentionally not taken

and he did not replied the notice and he has taken an untenable

contention etc.. Except total denial of contention of complainant,

accused failed to given rebuttal evidence to the case of

complainant.


      11. In support of the case of complainant, the learned

counsel for the     complainant submitted written arguments by

narrating the facts and circumstances of the case and submits

that complainant had fulfilled all the ingredients of offence

punishable u/s. 138 of NI Act , and hence he prays for convicting

the accused in accordance with law. In support of his contention,

he relied on the following decisions reported in:


      2015(4)     KCCR   3938    (    Gurupadaswamy     Vs.
      M.Partha) wherein it is held that " Dishonour of
      cheque - accused pleading that a blank cheque
      issued to another person has been misused by
                               11                  C.C.No.11570/2015.



complainant-That complainant was a stranger to
him- Court dealing with such contentions squarely
and cogently- Held, findings does not warrant
interference- conviction and setnece upheld. "

AIR 2010 SC 1898 (Rangappa vs. Mohan)

   "Dishonour of cheque-On account of 'stop payment'
   instructions sent by accused to Bank in respect of post
   dated cheque-S. 138 is attracted - Insufficiency of
   funds in account, irrespective."

AIR 2009 SC 568 ( P.Venugopal Vs. Madan
P.Sarathi) Wherein Hon'ble Supreme Court of India
held that "B" ... Dishonour of cheque - cheque issued
by drawer in discharge of liability - complainant
alleging that cheque was issued in discharge of hand
loan given by him- Plea raised by accused that there
was no debtor creditor relationship between parties-
concurrent finding that complainant has been able to
prove his case of grant of a loan- Not liable to be
interfered with in appeal.




AIR 2004 SC 408( Goa Plast(P) Ltd. Vs. Chico Ursula
D'souza ) (A).......Dishonour of cheque for issuing
stop payment instructions there must be funds in the
accounts- reasons for stopping payment however,
can be manifold- accused must have sufficient funds
in account on date of signing presentations of cheque
, date of letter to complainant denying liability to pay
                                    12                   C.C.No.11570/2015.



     sum and date on which stop payment instructions
     were issued to bank. - non examination of bank
     manager to ascertain whether or not there was
     sufficient amount in account for payment, erroneous-
     cheque on presentation to bank being dishonoured-
     accused liable to be convicted. .."

    On the basis of the aforesaid decisions coupled with the case

of complainant, the complainant had proved the alleged guilt of

the accused beyond all reasonable doubt.


     12. In support of the case of accused, learned counsel for

the accused submitted written arguments by narrating the facts

and circumstances of the case and submits that , alleged cheque

has been issued not for discharge of legal liability and the accused

had given rebuttal evidence to the case of complainant. Hence,

accused is entitled for acquittal. In support of his contention, he

relied on the decisions reported in :


     2013(3)    KCCR     1940      between     Smt.   Lakshmi
     Subramanya     .Vs. D.V. Nagesh in which the Hon'ble
     High court held that Negotiable Instruments Act, 1881-
     Sec. 138- Acquittal-Factum of lending- complainant not
     reflecting in his IT return-After appreciation of evidence
     Magistrate justified in acquitting accused.
                                        13                       C.C.No.11570/2015.



     2010(5) KCCR SN. 435. (B.Girish Vs.S.Ramaiah) In
     which Hon'ble High Court of Karnataka held that ..
     ".. Presumption u/s. 118(1) is rebuttable. The
     defence of the accused was that cheque was not
     issued for discharge of            any        debt of     liability.
     Admittedly     accused      has        not    capacity    to    pay
     Rs.50,000/-     nor    he     had            any     savings.   No
     contemporary documents have come into existence.
     The   income    tax    requires        that    all    transactions
     involving Rs.20,000/- and above should be through
     account payee cheque . Defence of accused is highly
     probable. Accused has rebutted presumption u/s.
     139 . The acquittal is justified.

     On perusal of the aforesaid decisions, coupled with the

defence taken by the accused are not supported to the case of

accused to show that the accused had given rebuttal evidence to

the case of complainant .


     13. On the basis of the aforesaid oral and documentary

evidence of both the complainant and accused , the complainant

had proved the alleged guilt of the accused beyond all reasonable

doubt . Though accused lead his side defence evidence and also

produced certain documents are not supported the case of

accused to show that the accused had given rebuttal evidence to

the case of complainant. Under these circumstances, the accused
                                  14                 C.C.No.11570/2015.



is liable for conviction as per law.        Accordingly, I pass the

following:


                               ORDER

Acting under Sec.265 of Cr.P.C. accused is Convicted for the offence punishable u/s 138 of N.I.Act and accused is sentenced to pay a fine of Rs.3,000/- ( Rs..Three thousand only) . In default of payment of fine amount, the accused shall undergo S.I. for a period of Three months.

The complainant was awarded compensation of Rs.14,00,000/- (Rs.Fourteen lakhs only) i.e. double the cheque amount and the same shall be paid to the complainant by the accused within 30 days from the date of this order.

In default of payment of compensation amount, the accused shall undergo Simple Imprisonment for a period of Two years.

Office is directed to supply free copy of this judgment to the accused forthwith.

(Dictated to the Stenographer, transcribed and computerized by her, corrected and then pronounced by me in the open court on this the 6th day of June, 2016) (NAGARAJEGOWDA.D) XXII ACMM, Bangalore city.

15 C.C.No.11570/2015.

ANNEXURE Witnesses examined for the Complainant:

PW.1 : Sri C.S.Venkatesh Witness examined for the accused:

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

Ex.P1              :   Cheque
Ex.P1a             :   Signature of the accused
Ex.P2              :   Endorsement
Ex.P3              :   Legal notice
Ex.P4              :   Postal receipt
Ex.P5              :   Letter to the post mater
Ex.P6              :   Returned postal cover
Ex.P6a                 Notice in it
Ex.P7                  SBI bank pass book

List of Documents marked for the accused:

Ex.D1              :   C.D.
Ex.D1(a)               C.D. transcription.
Ex.D2                  "B" extract
Ex.D2a                 Bangalore one receipt.
Ex.D3 & 4              Colour photos
Ex.D3a & 4a            C.D.




                                   XXII ACMM, Bangalore.
 16   C.C.No.11570/2015.