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Bangalore District Court

Haji K. Mohidin Bealry Education Trust vs Zeharana Khateeb on 19 March, 2025

KABC0C0100612023




     IN THE COURT OF XIV ADDL.CHIEF JUDICIAL
     MAGISTRATE, MAYOHALL UNIT, BENGALURU
          Dated this the 19th day of March, 2025

   Present:   Sri.SANTHOSH S.KUNDER., B.A.,LL.M.,
              XIV Addl. C.J.M., Bengaluru.

      JUDGMENT UNDER SECTION 355 of Cr.P.C

                     C.C.No. 53131/2023

                 Haji.K.Mohidin Beary Education Trust
Complainant      Bearys Horizon, 21, Wood Street,
                 Bengaluru.

                 Represented by its,
                 Legal Manager/Authorized Officer

                 Mrs.Champa K.C,
                 W/o Mr.Girish.K,
                 Aged about 40 years.

                 (By Sri. Haneef.M.H., Ruksana.M.H.,
                 Manjunatha.B & Praveen.S.L., Advocate)

                      V/s

Accused          Mr.Zeharan Khateeb,
                 S/o Mr.Zahroor Khateeb Shaye
                 R/at 174-1, Ferry Road,
                 Kundapura, Udupi,
                 Karnataka.
                 (By Sri.K.Prasanna Shetty, Advocate)
Offence         U/s 138 of Negotiable Instruments Act
Plea of the     Pleaded not guilty
accused
Final Order     Accused is held guilty & convicted
                                2                C.C.No.53131/2023
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      This complaint is filed under Section 200 of Cr.P.C,
for the offence punishable under Section 138 of the
Negotiable Instruments Act.

2.    Complaint averments in brief:

      2.1. Complainant-Haji K.Mohidin Beary Education
Trust is a renowned educational Trust started in 1906
with a goal of providing education to poor students and
children with rural background. Its registered office is
situated     in   Bengaluru.    It   runs      various   educational
institutions such as, M/s Bearys College of Education,
M/s Haji K.Mohidin Bearys Composite Pre-University
College and M/s Bearys First Grade College.
      2.2.        Accused was working as Accountant in
complainant's institution. On 29.07.2022, pursuant to the
information gathered by the Accountant of the Kundapura
Vyavasaya Seva Sahakari Sangha (VSSN), Kodi Branch, it
is found that during the course of the employment, he has
swindled/misappropriated accounts of M/s Bearys College
of Education and M/s Haji K.Mohidin Beary Composite
Pre-University      College    by    forging    the   signatures   of
President, Chairman and college Principal and withdrawn
huge amount from the bank accounts of complainant's
institutions.
                                      3                   C.C.No.53131/2023
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        2.3. It is found that on 22.06.2022, he had
withdrawn      ₹1,50,000/-            from       the   bank      account      of
M/s     Bearys      College     of       Education,       bearing      account
No.64057397797, maintained at State Bank of India,
Kundapura Branch through cheque bearing No.521549.
Further, on 02.07.2022, he has withdrawn a sum of
₹20,000/- from the very account through cheque bearing
No.521550 by forging the signatures of President and
Principal     of    colleges.    It       was     also     found      that   on
29.07.2022, he has obtained a cheque book pertaining to
the account No.00301000584 of M/s Bearys First Grade
College from Kundapura VSSN, Kodi Branch in the name
of the advisory committee complainant's institution.
Thereafter, he has transferred ₹70,000/- from the said
account            through               NEFT,           vide         reference
No.ICMS220729000LKNKL0000204,                            by     forging      the
signature     of     the     Chairman            of    the      complainant's
institution. Thereafter, he has withdrawn the said sum of
₹70,000/- by using cheque bearing No.521551 from the
joint account bearing No.64057397797. It was also found
that,    on   01.07.2022,        he        has    collected       a   sum     of
₹1,09,000/- and on 12.07.2022, he has collected a sum of
₹40,000/- in all ₹1,49,000/- as college fee from the
students of M/s Haji K Mohidin Beary Composite Pre-
University College and not deposited the said amount to
the bank account of the complainant's institution.
                            4            C.C.No.53131/2023
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     2.4. On enquiry with the accused, he has confessed
the guilty of misappropriation and forgery and promised to
pay swindled amount of ₹5,00,000/- by addressing a
letter dated 30.07.2022. In order to pay the said amount,
he has issued two cheques, bearing No.228122 dated
30.07.2022 for a sum of ₹3,89,000/- and cheque bearing
No.228121 dated 15.08.2022 for ₹1,11,000/-, both drawn
on State Bank of India, Kundapura Branch along with the
letter dated 30.07.2022 (supra). Mother of the accused by
name, Mrs.Dilbari and his uncle Mr.Khatib Ashfaque,
have signed the said letter as witnesses.
     2.5. Pursuant to the understanding between the
complainant and the accused, the complainant has
presented the cheque bearing No.228122 for encashment
on 17.08.2022 through its banker, namely, Bank of
Baroda, Konaje Branch. But, to utter shock of the
complainant, the said cheque was returned unpaid for the
reason 'insufficient funds' and the same was intimated to
the accused personally. He had requested time for
arranging the money. Accordingly, on 07.09.2022, he has
paid a sum of ₹50,000/- to the complainant which was
adjusted   towards   the   due   amount     of   ₹5,00,000/-.
However, even after several reminders and demands, the
accused has not paid the cheque amount. He has
requested the complainant to present the cheque again for
encashment. As per his assurance, the said cheque was
                                 5          C.C.No.53131/2023
KABC0C0100612023




presented again on 13.10.2022. But, it was again
returned unpaid on 14.10.2022 with similar endorsement.
        2.6. It is averred that the accused has issued the
cheque knowing fully well that he does not have sufficient
funds in his account to honour the cheque. Therefore, the
complainant has issued a legal notice on 09.11.2022
calling upon the accused to pay the entire cheque amount
within 15 days of receipt of the notice. Notice was duly
served on him on 15.11.2022. But, he has neither paid
the cheque amount nor replied the legal notice. Therefore,
this complaint is filed.
        3.      This court took cognizance of the offence
punishable under Section 138 of N.I.Act. Smt.Champa
K.C.,        Legal   Manager/Authorized     Officer   of   the
complainant was examined on oath. She has filed affidavit
in lieu of oral sworn statement. As there were prima facie
materials, criminal case was registered and accused was
summoned.

        4.      Pursuant   to   the   summons,   accused   has
appeared before the court and got enlarged on bail. After
compliance of Sec.207 of Cr.P.C, this court recorded his
plea by reading over the substances of accusation. He has
pleaded not guilty and claimed to be tried.
        5.    Evidence of Legal Manager of the complainant
which was recorded during pre-cognizance stage has been
                              6             C.C.No.53131/2023
KABC0C0100612023




treated as evidence. Documents at Ex.P1 to 11 marked
through her.

     6.      Accused was examined under Sec.313 of
Cr.P.C. He has denied the incriminating evidence. By way
of defence, he has examined himself as DW-1. No
documents marked for the accused.
     7.      Heard argument on both side.
     8.      Points for consideration:-
          1. Whether the complainant has proved
          that the accused has drawn cheque
          bearing No.228122 dtd.30.07.2022 for
          ₹3,89,000/- on State Bank of India,
          Kundapura Branch, in favour of the
          complainant towards discharge of legally
          recoverable debt/liability and the said
          cheque was dishonored for the reason
          'insufficient funds' and in spite of service
          of statutory notice dated 09.11.2022, he
          has failed pay the amount covered under
          the cheque and thereby committed the
          offence punishable under Section 138 of
          N.I.Act?

          2. What order?

     9. The above points are answered as under:-
     Point No.1 : In the Affirmative.
     Point No.2 : As per final order for the following:

                        REASONS
     10. Point No.1:- The case of the complainant is that,
the accused was working as Accountant in its institution
                                 7                   C.C.No.53131/2023
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and during his employment, between 22.06.2022 and
29.07.2022,       he    has     misappropriated          a     sum    of
₹5,00,000/- of complainants' institutions by forging
signatures of President and Chairman of the complainant
and   Principal    of    education         institution   run   by    the
complainant. Complainant is contending that the accused
has confessed his guilty and in order to return the
misappropriated sum of ₹5,00,000/- he has issued two
cheques. Subject matter of this complaint is cheque
bearing No.228122 dated 30.07.2022 for ₹3,89,000/-
drawn on State Bank of India, Kundapura Branch. The
complainant is contending that the said cheque was
presented twice for encashment and on both occasions, it
was    returned        unpaid       with      endorsements      'funds
insufficient' and that, in spite of service of statutory
demand notice he has failed to pay the cheque amount.
      11.   In    order    to       prove     the    contention,     the
complainant has relied on evidence of its Legal Manager
by name Smt.Champa K.C and documents at Ex.P1 to 11.
Ex.P-1 is the cheque; Ex.P-2 is the bank endorsement
dated 14.10.2022; Ex.P-3 is copy of the legal notice dated
09.11.2022; Ex.P-4 to 6 are three postal receipts; Ex.P-7
is postal track consignment report; Ex.P-8 is reply notice
dated 05.11.2022; Ex.P9 is extract of resolution passed by
the trusties of the complainant dated 21.12.2022; Ex.P-10
is bank statement of complainant and Ex.P-11 is certified
                               8                C.C.No.53131/2023
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copy of letter dated 30.07.2022 allegedly written by the
accused to the complainant.
      12.    Learned      counsel   for   the    accused      cross-
examined PW-1 and elicited that the misappropriation
took place in Kundapura. It is elicited that the accused
was   appointed      as    Accountant     in    the     educational
institution run by the complainant. It is also elicited that
one Naresh Bhat was working as Supervisor in M/s
Bearys College of Education, M/s Haji K Mohidin Bearys
Composite Pre-University College and M/s Bearys First
Grade College. PW-1 has asserted that three months after
the accused joined for duty, misappropriation took place.
She has further asserted that the act of misappropriation
came into light when an employee of Kundapura VSSN
telephoned the complainant to inform that the signature
on the cheque that was presented for encashment is not
tallying. Soon after coming to know above the act of
misappropriation, the Supervisor - Naresh Bhat informed
the same to the complainant's institution. It is elicited
that the money was misappropriated from the bank
accounts maintained in State Bank of India and VSSN,
Kundapura Branch. When questioned as to what is the
amount      that   was    misappropriated       by    the   accused,
PW-1 has stated that approximately ₹5,00,000/- has been
misappropriated. When it was asked in complaint as well
as in legal notice, the misappropriated amount is
                            9             C.C.No.53131/2023
KABC0C0100612023




mentioned as ₹3,89,000/-, PW-1 has stated that after
verification of records, it was found that ₹3,89,000/- was
misappropriated; but, the accused himself has confessed
that he has misappropriated a sum of ₹5,00,000/-.
     13.   During further cross-examination, when it was
questioned as to how ₹3,89,000/- was misappropriated,
PW-1 has stated that the accused has forged the
signatures of Principal and President on the cheques and
drawn ₹1,50,000/- and ₹1,70,000/- from the bank. PW-1
has further stated that the accused has drawn ₹70,000/-
from Kundapura VSSN and transferred the same to State
Bank of India, Kundapura and withdrew it by using the
cheque by forging the signatures         of Principal and
President. When questioned if, complaint was lodged
against the accused, PW-1 has stated that no such
complaint was lodged. When questioned if, documents
relating to forgery have produced before the court, PW-1
has stated that those documents are in bank. PW-1 has
asserted that college fee will be received from the students
in cash as well as through bank transfer. It it elicited that
out of misappropriated fund of ₹5,00,000/-, the accused
has paid ₹50,000/-. When it was questioned, in whose
presence accused wrote letter at Ex.P11, PW-1 answered
that the accused himself wrote the letter in the presence
of his mother, uncle, President of institution, college
Principal and Chief Accountant. When it was suggested
                              10                  C.C.No.53131/2023
KABC0C0100612023




that Ex.P11 does not bear signatures of accused, PW-1
has stated that it bears his signature and the same are
marked as Ex.P11(a) and 11(b). It was suggested that
Ex.P11 was obtained from the accused by threatening his
mother.
     14.     Accused   has   entered      into    witness-box    to
examine himself as DW-1. During examination-in-chief,
he has deposed that he worked as Accountant in
complainant's institution for 08 months. Since, he was
getting less salary, he intended to go abroad and
therefore, he has tendered resignation. Before tendering
resignation, he had informed the Chairman of the
complainant by name, Abdul Rehaman and requested to
give experience certificate. In response to the request, he
had asked the accused to give three months' advance
notice or three months' salary and to tender resignation.
Since, the accused was in hurry to go abroad, in
September,    2022,    he    has   paid    ₹50,000/-       to   the
complainant in cash. At the time of giving cash, Abdul
Rehaman asked the accused to give two cheques. When
the accused questioned regarding necessity of giving the
cheques, he had informed that the cheques are required
for the purpose of paying three months' salary and he had
assured that the cheques will be returned at the time of
issuing relieving letter. DW-1 has further deposed that at
the time of tendering ₹50,000/- in cash, he had requested
                           11            C.C.No.53131/2023
KABC0C0100612023




to return the cheques. But, the cheques were not
returned.
     15. Learned counsel for the complainant cross-
examined DW-1 and elicited that the accused has joined
the complainant's institution on 25.11.2021 and relieved
from duty on 29.07.2022. DW-1 has asserted that he has
given the first cheque on 01.07.2022. When he was
questioned as to whether he has produced visa to the
court that was received by him at the time of issuing
relieving letter, DW-1 has stated that he has not produced
the visa before the court. He has stated that he does not
remember his passport number. He has asserted that
passport is valid for 10 years. DW-1 has admitted that
Ex.P1 belongs to him and Ex.P1(a) is his signature. When
it was suggested that Ex.P1 cheque was given to the
complainant on 30.07.2022, he has stated that he has not
issued the cheque; but, the Chairman of the complainant
has taken it. DW-1 has denied the suggestion that he has
misappropriated ₹5,00,000/-. When it was suggested that
he was asked to come to complainant's institution on
29.07.2022, DW-1 has stated that he did not go for the
reason that he has not done anything. It is elicited that
Smt. Dilbari is mother and one Khatib Ashfaq is uncle of
the accused. He has denied the suggestion that on
30.07.2022, his mother and uncle have produced him
before the Principal and others for enquiry. He has also
                            12              C.C.No.53131/2023
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denied the suggestion that during enquiry, he has issued
two cheques in favour of complainant. It is elicited that on
07.09.2022, the accused deposited ₹50,000/- to the
complainant. DW-1 has asserted that he had deposited
the said money for the purpose of issuing relieving letter.
However, till this date, relieving letter has not been issued.
It was suggested that the relieving letter was not issued
for the reason that he has misappropriated ₹5,00,000/- in
complainants' Institution. DW-1 has denied the same. It is
elicited that he has issued reply as per Ex.P8 to the legal
notice issued by the complainant. It is elicited that the
accused has not lodged complaint to police alleging
misuse of his cheques.
     16.   During    the   course   of   argument,    learned
counsel for the complainant has submitted that the
accused has admitted the cheque and his signature on the
cheque. He has also drawn the attention of the court to
letter at Ex.P11, which is purported to have been written
by the accused himself in his own handwriting confessing
the guilt of misappropriation of funds. Under the very
letter the accused has issued the subject cheques. He has
submitted that the mother and uncle of the accused have
signed the said letter as witnesses. Learned counsel for
the complainant submitted that the complainant has
produced    sufficient   evidence   before   the   court    to
substantiate that the accused has misappropriated the
                           13            C.C.No.53131/2023
KABC0C0100612023




funds of the complainant and has issued two cheques for
the purpose of return of misappropriate money to the
complainant. Therefore, the accused is liable to be
convicted.
       17.   On the other hand, learned counsel for the
accused has submitted that the cheques were given by the
accused at the time of joining service. He has submitted
that    as   per   the   complaint   averments,    alleged
misappropriated money is ₹3,89,000/-. But, the cheques
were allegedly drawn for ₹5,00,000/-. There was no
necessity for the accused to give cheque for ₹5,00,000/-
when the alleged misappropriated money is ₹3,89,000/-.
He has further submitted that PW-1 is working in
Bengaluru Branch of complainant's institution and as
such, she does not personally aware of the act of
misappropriation attributed the accused. He has argued
that, for the commission of an offence under Section 138
of NI Act, the cheques that is dishonored must represent a
regally enforceable debt on the date of its maturity or
presentation. If the drawer of the cheque pays a part or
whole of the sum represented on the cheque between the
period when the cheque is drawn and when it is encashed
upon maturity, then the legally enforceable debt on the
date of maturity would not be a sum represented on the
cheque. He has argued that in the present case, according
to the complainant, after the drawing of the alleged
                               14           C.C.No.53131/2023
KABC0C0100612023




cheque(s) by the accused, he has made part payment and
the same was adjusted to the amount allegedly due to the
complainant. Therefore, he has submitted that the
accused cannot be held guilty of the offence. In this
regard, reliance is placed on the judgment of Hon'ble
Supreme Court in Dashrathbhai Trikambhai Patel V/s.
Hitesh Mahendrabhai Patel & Anr., 2023(1) SCC 578,
which is produced by the counsel for the complainant.
Apart     from   the   said   judgment,   advocate   for   the
complainant has relied on the following judgments:-
        1. M/s Kalamani Tex V/s Balasubramanian;
        AIR 2021 SC (SUPP) 1083;
        2. Rajesh Jain V/s Ajay Singh;
        AIR 2023 SC 5018;
        3. Smt.Parvathamma.M V/s Smit.Chandrakala.V.
        Criminal        Appeal     No.508/2015;
        (DD.14.06.2024)

        18.   On the other hand, advocate for the accused
has relied on the judgments of Hon'ble Supreme Court in
Krishna Janardhan Bhat V/s Dattatraya.G Hegde (AIR
2008 SC 1325) and Kalyan Kumar Gogoi V/s Ashutosh
Agnihotri and another (AIR 2011 SC 760)
        19.   I have given anxious consideration to the
argument advanced by both advocates. I have also gone
through the materials placed on record and judgments
cited by either side. The complainant is contending that
the accused was working as Accountant at complainant's
                            15            C.C.No.53131/2023
KABC0C0100612023




institution and during his tenure as Accountant, he has
misappropriated a sum of ₹5,00,000/- and towards
repayment of the same, the accused has drawn the
cheques along with letter dated 30.07.2022 which is
marked at Ex.P11. It is equally important to note that
after the drawing of alleged cheques by the accused,
according to the complainant, on 07.09.2022 the accused
has paid a sum of ₹50,000/- to the complainant and the
same was adjusted towards misappropriated money. This
has been pleaded in para No.8 of the complaint.
     20. Subject matter of this case is, cheque bearing
No.228122 dated 30.07.2022 drawn for ₹3,89,000/-,
which is produced at Ex.P1. It is not in dispute that the
said cheque was returned unpaid for the reason 'funds
insufficient', vide bank endorsement at Ex.P2 dated
14.10.2022. After the dishonor of the cheque, the
complainant has issued a demand notice to the accused
as per Ex.P3 through registered post. Postal receipt and
postal track consignment report are marked at Ex.P4 to 7
respectively. Accused does not dispute the service of
notice on him. In fact, he has admitted service of notice in
his examination-in-chief itself and reply issued by him is
marked at Ex.P8.
     21.   It is an undisputed fact that the accused had
worked as Accountant in complainant's institution from
25.11.2021 to 29.07.2022. It is pertinent to note that the
                                  16                C.C.No.53131/2023
KABC0C0100612023




accused has admitted that cheque at Ex.P1 belongs to
him and Ex.P1(a) is his signature. Relevant portion of
deposition of DW-1 is extracted hereunder:-
              "02. ನಿ.ಪಿ-1 ನನ್ನದೆ ಚೆಕ್ಕು ಇರುತ್ತದೆ. ನಿ.ಪಿ-1(ಎ)
           ಸಹಿ ನನ್ನದೇ ಇರುತ್ತದೆ. ದಿ.25.11.2021 ರಂದು
           ನಾನು ದೂರುದಾರ ಸಂಸ್ಥೆಗೆ               ಕೆಲಸಕ್ಕೆ ಸೇರಿ
           ದಿ.29.07.2022 ರಂದು ನಾನು ಸೇವೆಯಿಂದ ಬಿಡುಗಡೆ
           ಹೊಂದಿದ್ದೇನೆಂದರೆ ಸರಿ. ನಿ.ಪಿ-1 ಚೆಕ್ಕನ್ನು ನಾನು
           ದೂರುದಾರ ಸಂಸ್ಥೆಗೆ        ದಿ.30.07.2022 ರಂದು
           ಕೊಟ್ಟೆದ್ದೇನೆಂದರೆ, ನಾನು ಆ ಚೆಕ್ಕನ್ನು ದೂರುದಾರರಿಗೆ
           ಕೊಡಲಿಲ್ಲ ಎಂದು ಸಾಕ್ಷಿಯು ಹೇಳುತ್ತಾರೆ.XXXXX"

     22.      Of course, accused has denied the allegation of
misappropriation attributed to him. He has also denied
that the cheques were drawn towards payment of alleged
misappropriated money. Complainant is contending that
the accused has admitted guilt and, on 07.09.2022 he has
deposited part of the misappropriated money. It is relevant
to note that the accused admits that he has paid
₹50,000/- to the complainant on 07.09.2022. However,
according     to   him,     he    has    paid    ₹50,000/-      to   the
complainant in September, 2022 on the say of Chairman
of the complainant for the purpose of issuing relieving
letter, as he intended to go abroad for job. During cross-
examination, he has admitted that he has deposited
₹50,000/- to the complainant on 07.09.2022. Said piece
of evidence of DW-1 is extracted as under:-
          "XXXX ದಿ.07.09.2022 ರಂದು              ನಾನು
        ದೂರುದಾರ ಸಂಸ್ಥೆಗೆ ರೂ.50,000/- ಗಳನ್ನು ಜಮಾ
        ಮಾಡಿದ್ದೇನೆಂದರೆ ಸರಿ. Relieving letter ಕೊಡುವ
                               17               C.C.No.53131/2023
KABC0C0100612023




        ಸಲುವಾಗಿ ನಾನು ಆ ಹಣವನ್ನು ಕೊಟ್ಟಿದ್ದೇನೆ. ಅದು
        ಲಂಚದ ಹಣವೇ ಎಂದು ಕೇಳಿದಾಗ, ನನಗೆ ಗೊತ್ತಿಲ್ಲ
        ಎಂದು ಸಾಕ್ಷಿಯು ಹೇಳುತ್ತಾರೆ. ತಕ್ಷಣ ಕೆಲಸದಿಂದ ಬಿಡುಗಡೆ
        ಮಾಡಲು ಆಗುವುದಿಲ್ಲ, ಅಕೌಂಟ್ಸ್‍ ಕೆಲಸ ಬಾಕಿ ಇದೆ
        ಎಂದು ಹೇಳಿ ನನಗೆ Relieving letter ಅನ್ನು
        ಕೊಟ್ಟಿರಲಿಲ್ಲ.   ಈವರೆಗೆ        ನನಗೆ     ದೂರುದಾರ
        ಸಂಸ್ಥೆಯವರು Relieving letter ಅನ್ನು ಕೊಟ್ಟಿಲ್ಲ.
        ದೂರುದಾರರ ಸಂಸ್ಥೆಯ ರೂ. 5,00,000/- ಹಣವನ್ನು
        ನಾನು     ದುರುಪಯೋಗ       ಮಾಡಿದ್ದೇನೆಂದು    ನನಗೆ
        Relieving letter ಕೊಟ್ಟಿಲ್ಲ ಎಂದರೆ, ನಾನು ಹಣ
        ದುರುಪಯೋಗ ಮಾಡಿಲ್ಲವೆಂದು ಸಾಕ್ಷಿಯು ಹೇಳುತ್ತಾರೆ."

     23.   In order to prove that the accused has
misappropriated money in the complainant and cheques
were issued by the accused for payment of the said
money, the complainant has produced certified copy of
letter dated 30.07.2022 (Ex.P11), allegedly written by the
accused to the President of the complainant. The said
letter is extracted as under:-
     "From,
    Zeharan Khateeb
    Accountant
    Haji K.Mohidin Beary Education Trust
    To,
    President
    Haji K.Mohidin Beary Education Trust

    Dear Sir,
          Subject: Missappropriation of Fess
                  collection money by me &
                  Forgery of signature of
                 chairman.

       With reference to the above subject, I here
    with certified that I have done misappropriation
                             18           C.C.No.53131/2023
KABC0C0100612023




   in fees collection money & Forgery of signature
   of the chairman of the company & withdrawal
   of cash. Same as been purely handled by me &
   I am fully responsible for re-pay the
   misappropriated amount & also any other
   amount found while Auditing, here with &
   furnishing the misappropriation amount as
   below
   1) PUC by cash collection Rs.109000 01-07-2022
       by cash collection     Rs.40000     12-07-2022
                                 ________
                                1,49,000
   2) B.Ed.    (S.B.I account)
      Rs.2,40,000 cheque no:              13-07-22
                                  self withdrawal
    All Total Rs 3,89,000
    For the above mentioned amount & submitting
   cheques as below

   1) Rs 3,89,000 cheque no: 228122 30-07-22
   2) Rs 1,11,000 cheque no: 228121 15-08-22
                          Sd/-

         I am held responsible for above cheque
         Apart from above amount any more
   amount found as misappropriation I am held
   responsible from 25-11-2021 to 29-07-2022.
          I am requesting you to please present
   chno: 228122 on 16-08-2022 & ch no: 228121
   on 30-08-2022 & I undertake to maintain the
   required balance in the above said account.

    Address: S/o Zaheer Khateeb Shaye
    174-1, Ferry road, Kundapura, Udupi
    Karnataka, 576201
    aadhar no: 241987792754

    Witness
    1) Sd/-
                                 19               C.C.No.53131/2023
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     2) Sd/-                                  Sd/-
                                         30-07-2022"

     24.     During cross-examination, DW-1 has conceded
that Smt.Dilbari and Sri.Khateeb Ashfaque, who have
signed as witnesses to Ex.P11 are his mother and uncle
respectively. It was suggested to DW-1 that after the
incident    of   misappropriation,        said   Smt.Dilbari   and
Sri.Khateeb Ashfaque have produced him before the
Principal of the college and got him enquired and on the
same day, two cheques were issued to the complainant.
DW-1 has denied the suggestion. It is useful to extract the
deposition of DW-1 dated 14.11.2024 which reads as
under:-
           "04. ಶ್ರೀಮತಿ. ದಿಲ್ಬಾರಿ ರವರು ನನ್ನ ತಾಯಿ. ಖತೀಬ್‍
           ಅಶ್ಛಾಕ್‍ ರವರು ನನ್ನ ಚಿಕ್ಕಪ್ಪ. ಖತೀಬ್‍ ಅಶ್ಛಾಕ್‍
           ರವರು ಮೊದಲು ದೂರುದಾರ ಸಂಸ್ಥೆಯಲ್ಲಿ ಕೆಲಸ
           ಮಾಡುತ್ತಿದ್ದರು ಎಂದರೆ ಸರಿಯಲ್ಲ. ನಾನು ಹಣ
           ದುರುಪಯೋಗಪಡಿಸಿಕೊಂಡು ಓಡಿ ಹೋದ ನಂತರ
           ನನ್ನನ್ನು      ನನ್ನ    ತಾಯಿ   ಮತ್ತು     ಚಿಕ್ಕಪ್ಪ
           ದಿ.30.07.2022 ರಂದು ದುಾರುದಾರ ಸಂಸ್ಥೆಯ
           ಪ್ರಾಂಶುಪಾಲರು ಮತ್ತು ಇತರರ ಮುಂದೆ ಹಾಜರುಮಾಡಿ,
           ವಿಚಾರಣೆ ಮಾಡಿಸಿದ್ದಾರೆಂದರೆ ಸರಿಯಲ್ಲ. ಅದೇ ದಿನ
           ನಾನು 02 ಚೆಕ್ಕುಗಳನ್ನು ದೂರುದಾರ ಸಂಸ್ಥೆಗೆ
           ಕೊಟ್ಟಿದ್ದೇನೆಂದರೆ ಸರಿಯಲ್ಲ."

     25.     It is pertinent to note that the accused does
not dispute his signature on Ex.P11. On the other hand,
he is contending that the said letter was got written by the
Principal of the college by putting him (accused) and his
mother under threat. This piece of evidence is finding
                                20               C.C.No.53131/2023
KABC0C0100612023




place in the cross-examination of PW-1, which is extracted
as under:-
              "XXXX ನಿ.ಪಿ.11 ರ ಪತ್ರವನ್ನು ಕುಂದಾಪುರದ
           ಸಂಸ್ಥೆಯ ಪ್ರಿನ್ಸಿಪಾಲ್‍ ಮೊಹಮ್ಮದ್‍ ಸಮೀರ್ ರವರು
           ಆರೋಪಿ ಮತ್ತು ಆರೋಪಿ ತಾಯಿಗೆ ಬೆದರಿಕೆ ಹಾಕಿ
           ಬರೆಸಿಕೊಂಡಿರುವ ಪತ್ರ ಆಗಿದೆ ಎಂದರೆ ಸಾಕ್ಷಿ ಸರಿಯಲ್ಲ
           ಎನ್ನುತ್ತಾರೆ. XXXXX"

     26.     Though, the accused is contending that his
signature on Ex.P11 was obtained by threatening him,
except his self-serving testimony, no witnesses have been
examined before the court to substantiate the same. His
mother and uncle would have been the star witnesses to
speak about the alleged threat put to accused and his
mother. Therefore, this court holds that the defence of the
accused in this regard has not been proved.
     27.     It is pertinent to note that in legal notice at
Ex.P3, the complainant has specifically stated that the
accused has admitted the guilt and assured to repay the
swindled amount of 5,00,000/- by issuing a letter dated
30.07.2022 (Ex.P11). To the said notice, the accused has
issued reply notice at Ex.P8 where, except bare denial,
nothing is stated that the complainant has got written the
said letter by putting the accused under fear. Had there
been any such threat as being asserted by the accused,
nothing prevented him to urge the same at the first given
opportunity. At one breath, accused is contending that
cheques were given to the complainant on the say of
                            21                C.C.No.53131/2023
KABC0C0100612023




Chairman of the complainant towards payment of three
months' salary and on the other, he is contending that the
cheques were taken by putting him and his mother under
threat. None of these contentions are worth of acceptance,
as because, normally, no employer would take cheque(s)
from his employee for the purpose of paying wages.
      28.    Accused is contending that he has deposited
₹50,000/- to the complainant for the purpose of issuing
relieving letter. However, as per his own version in his
cross-examination, even after paying ₹50,000/-, relieving
letter has not been issued to him. When it was questioned
if the said money was given as bribe, he has stated that he
does not know. It is pertinent to note that the accused
was relieved from duty on 29.07.2022. Once he was
relieved from duty, absolutely there was no necessity for
him   to    deposit   ₹50,000/-   to   the   complainant   on
07.09.2022. Therefore, the defence that ₹50,000/- was
paid to the complainant for the purpose of issuing
relieving letter is also not of worth acceptance.

      29.    It is true that the complainant has admitted
that out of the misappropriated money, the accused has
paid a sum of ₹50,000/- on 07.09.2022. This is not in
dispute. The said payment of ₹50,000/- was made after
the issuance of cheque at Ex.P1. According to the
complainant, money misappropriated by the accused is to
the tune of ₹5,00,000/-. Cheque at Ex.P1 is dated
                                       22                  C.C.No.53131/2023
KABC0C0100612023




30.07.2022 drawn for ₹3,89,000/-. Even after adjusting
amount paid by the accused after the issuance of the
cheque, towards misappropriated money, the accused is
still liable to pay ₹4,50,000/-.

        30.     It is true that as per the averments at para
No.3      to    5      of     the   complaint,       the      total      money
misappropriated is ₹3,89,000/-. But, in Ex.P11, the
accused has admitted that he is liable to pay a sum
₹5,00,000/- and issued two cheques. In this regard, PW-1
was     questioned           during        cross-examination.         Relevant
portions of deposition of PW-1 are extracted as under:-

        "XXXX ಯಾುವ ದಿನಾಂಕದಂದು ಎಷ್ಟು ಹಣ ದುರುಪಯೆಾುೕಗ
       ಮಾಡಲಾಗಿದೆ ಎಂದು ನಿರ್ಧಿಷ್ಟವಾಗಿ ನಿಮಗೆ ಹೇಳಲು ಆಗುತ್ತದಾ
       ಎಂದರೆ ಸಾಕ್ಷಿ ಇಲ್ಲಾ, ನನಗೆ ನೆನಪಿಲ್ಲಾ ಎನ್ನುತ್ತಾರೆ. ನಿಮ್ಮ ದೂರು
       ಮತ್ತು ಲೀಗಲ್‍ ನೋಟೀಸಿನಲ್ಲಿ ದುರುಪಯೆಾೕಗವಾಗಿರುವ ಮೊತ್ತ
       3,89,000-00 ಎಂದು ಮಾತ್ರ ನಮೂದು ಇದೆ ಎಂದರೆ ಸಾಕ್ಷಿ
       ನಾವು ಪರಿಶೀಲಿಸಿದಾಗ ನಮಗೆ ಲೆಕ್ಕ ಸಿಕ್ಕಿದ್ದು, 3,89,000-00
       ಆದರೆ      ಅರೋಪಿಯೇ           ತಾನು      5,00,000-00        ದಷ್ಟು
       ದುರುಪಯಾೕಗ            ಮಾಡಿಕೊಂಡಿರುವುದಾಗಿ     ಒಪ್ಪಿ    ಕೊಂಡಿದ್ದಾರೆ
       ಎನ್ನುತ್ತಾರೆ."


        "XXXXX ಆರೋಪಿ ದುರುಪಯೋಗ ಮಾಡಿರುವುದನ್ನು ಯಾರ
       ಮುಂದೆ ಒಪ್ಪಿಕೊಂಡಿದ್ದಾರೆ ಎಂದರೆ ಸಾಕ್ಷಿ ಆರೋಪಿಯ ಚಿಕ್ಕಪ್ಪ,
       ಅವರ ತಾಯಿ ದಿಲ್‍ಬರಿ, ನಮ್ಮ ಸಂಸ್ಥೆಯ ಪ್ರೆಸಿಡೆಂಟ್‍ ಅಬ್ದುಲ್‍
       ರೆಹಮಾನ್‍, ಅಲ್ಲಿನ ಮುಖ್ಯ ಲೆಕ್ಕಾಧಿಕಾರಿ ನರೇಶ್‍ಭಟ್‍ ಮತ್ತು
       ಪ್ರಿನ್ಸಿಪಾಲ್‍ರವರ         ಸಮಕ್ಷಮ          ರೂ.5,00,000/-ವನ್ನು
                                   23                      C.C.No.53131/2023
KABC0C0100612023




     ದುರುಪಯೇೂಗ ಪಡಿಸಿಕೊಂಡಿದ್ದೆ ಎಂದು ಒಪ್ಪಿಕೊಂಡಿದ್ದಾರೆ. ನಿಪಿ.9
     ರ ಪತ್ರವನ್ನು ಯಾರ ಸಮಕ್ಷಮ ಯಾರು ಬರೆದರು ಎಂದರೆ ಸಾಕ್ಷಿ
     ಆರೋಪಿಯೇ ನಾನು ಮೇಲೆ ಹೇಳಿದವರ ಸಮಕ್ಷಮದಲ್ಲಿ ತನ್ನ ಸ್ವಂತ
     ಬರವಣಿಗೆಯಲ್ಲಿ         ಬರೆದಿದ್ದಾರೆ.     ಸಾಕ್ಷಿ        ನಿಪಿ.9     ರಲ್ಲಿ
     ರೂ.3,89,000/- ಎಂದು ಮೊತ್ತ ನಮೂದು ಆಗಿದೆ ಎಂದರೆ
     ವಿವರಣೆಅಷ್ಟಕ್ಕೆಕೊಟ್ಟಿದ್ದಾರೆ ದುರೂಪಯೋಗಆಗಿದೆಎಂದು ಆದರೆ
     ಒಪ್ಪಿ ಅವರು ಕೊಳ್ಳುತ್ತಾರೆ. ರೂ.5,00,000/- ಆರೋಪಿ ಮೊತ್ತ
     ದುರುಪಯೋಗ ಮಾಡಿಕೊಂಡಿರುವ ಹಣದಲ್ಲಿ ಎಷ್ಟು ಹಣ ನಿಮಗೆ
     ವಾಪಾಸ್ಸು ಕೊಟ್ಟಿದ್ದಾರೆ ಎಂದರೆ ಸಾಕ್ಷಿ ರೂ.50,000/- ಕೊಟ್ಟಿದ್ದಾರೆ
     ಎನ್ನುತ್ತಾರೆ.XXXXX"


     31.     Apart    from       the     documentary              evidence    at
Ex.P11,    there     is      clear       evidence         to      explain    the
circumstances under which the accused has drawn the
cheques for ₹5,00,000/- in favour of the complainant.
Accused has made part payment of                               ₹50,000/- on
07.09.2022. Even after adjusting the said sum towards
the misappropriated money of ₹5,00,000/-, the accused is
still liable to pay ₹4,50,000/- to the complainant.


     32.     In Dashrathbhai Trikambhai Patel's case
(supra) facts involved are that, cheque dated 17.03.2014
was issued by the accused for ₹20,00,000/-. It was
presented for encashment on 02.04.2014 and it was
dishonored     due     to      insufficient         of     funds.     Between
18.04.2012 and 30.12.2013, the accused therein paid a
sum of ₹4,09,315/- to the complainant. After the dishonor
                           24            C.C.No.53131/2023
KABC0C0100612023




of the cheque, the complainant issued a statutory notice
to the accused calling upon him to pay legally enforceable
debt of ₹20,00,000/-. The accused issued reply to the said
notice. Thereafter, the complaint was filed against the
accused on 12.05.2014 for the offence under Section 138
of NI Act. Trial court acquitted the accused on the ground
that the accused has paid a sum of ₹4,09,315/- to the
complainant between 18.04.2012 and 30.12.2013. In
appeal, Hon'ble High Court of Bombay upheld the
judgment of trial court acquitting the accused. In appeal
before the Hon'ble Supreme Court, the question for
consideration was whether Section 138 of the NI Act
would still be attracted when the drawer of the cheque
makes a part payment towards the debt or liability after
the cheque is drawn but before the cheque is encashed,
for the dishonor of the cheque which represents the full
sum. Hon'ble Supreme Court after considering the
provisions contained in Sections 15 and 56 of NI Act and
discussing the previous judgments held as under:-


        29. Under Section 56 read with Section 15
        of the Act, an endorsement may be made
        by recording the part-payment of the debt
        in the cheque or in a note appended to the
        cheque. When such an endorsement is
        made, the instrument could still be used to
        negotiate the balance amount. If the
        endorsed cheque when presented for
        encashment of the balance amount is
                          25            C.C.No.53131/2023
KABC0C0100612023




       dishonoured, then the drawee can take
       recourse to the provisions of Section 138.
       Thus, when a part- payment of the debt is
       made after the cheque was drawn but
       before the cheque is encashed, such
       payment must be endorsed on the cheque
       under Section 56 of the Act. The cheque
       cannot be presented for encashment
       without recording the part payment. If the
       unendorsed cheque is dishonoured on
       presentation, the offence under Section 138
       would not be attracted since the cheque
       does not represent a legally enforceable
       debt at the time of encashment.

       30. In view of the discussion above, we
       summarise our findings below:

       (i) For the commission of an offence under
       Section    138,   the   cheque    that   is
       dishonoured must represent a legally
       enforceable debt on the date of maturity or
       presentation;

       (ii) If the drawer of the cheque pays a part
       or whole of the sum between the period
       when the cheque is drawn and when it is
       encashed upon maturity, then the legally
       enforceable debt on the date of maturity
       would not be the sum represented on the
       cheque;

       (iii) When a part or whole of the sum
       represented on the cheque is paid by the
       drawer of the cheque, it must be endorsed
       on the cheque as prescribed in Section 56
       of the Act. The cheque endorsed with the
       payment made may be used to negotiate
       the balance, if any. If the cheque that is
                              26             C.C.No.53131/2023
KABC0C0100612023




           endorsed is dishonoured when it is sought
           to be encashed upon maturity, then the
           offence under Section 138 will stand
           attracted;

           (iv) The first respondent has made part-
           payments after the debt was incurred and
           before the cheque was encashed upon
           maturity. The sum of rupees twenty lakhs
           represented on the cheque was not the
           'legally enforceable debt' on the date of
           maturity. Thus, the first respondent cannot
           be deemed to have committed an offence
           under Section 138 of the Act when the
           cheque was dishonoured for insufficient
           funds; and

           (v) The notice demanding the payment of
           the 'said amount of money' has been
           interpreted by judgments of this Court to
           mean the cheque amount. The conditions
           stipulated in the provisos to Section 138
           need to be fulfilled in addition to the
           ingredients in the substantive part of
           Section 138. Since in this case, the first
           respondent has not committed an offence
           under Section 138, the validity of the form
           of the notice need not be decided."

     33.     In the present case, the subject cheque is
dated 30.07.2022 for ₹3,89,000/- was issued by the
accused with letter dated 30.07.2022 (Ex.P11) under
which   the    liability   admitted   by   the   accused   was
₹5,00,000/-. In other words, it is a post-dated cheque.
Out of the liability admitted under Ex.P11, the accused
has made part payment of ₹50,000/- on 07.09.2022. The
                                  27                C.C.No.53131/2023
KABC0C0100612023




subject cheque was presented for encashment twice on
17.08.2022 and 13.10.2022. On both occasions, it was
dishonored. Thereafter, demand notice dated 09.11.2022,
was issued to the accused calling upon him pay the
dishonored cheque amount of ₹3,89,000/-. Accused has
not complied the demand made in the notice. Therefore,
this complaint is filed. It is relevant to note that amount
involved in the cheque is lesser than the liability admitted
under Ex.P11. Therefore, notwithstanding the payment of
₹50,000/- by the accused before the presentation of the
cheque for second time does not in any way affect the
case, as the said part payment of ₹50,000/- does not fully
wipe off the entire liability of ₹5,00,000/-. Therefore, facts
involved     in   this    case    and      the     one   involved   in
Dashrathbhai Trikambhai Patel's case (supra) are
altogether    different    and        as   such,    it   is   factually
distinguishable.

      34.    Section 138 of the NI Act provides that a
drawer of a cheque is deemed to have committed the
offence if the following ingredients are fulfilled:
        (i) A cheque drawn for the payment of any
        amount of money to another person;

        (ii) The cheque is drawn for the discharge of
        the "whole or part" of any debt or other
        liability. "Debt or other liability" means legally
        enforceable debt or other liability; and
                               28            C.C.No.53131/2023
KABC0C0100612023




        (iii) The cheque is returned by the bank
        unpaid because of insufficient funds.

       However, unless the stipulations in the proviso are
fulfilled the offence is not deemed to be committed. The
conditions in the proviso are as follows:


        (i) The cheque must be presented in the bank
        within six months from the date on which it
        was drawn or within the period of its validity;

        (ii) The holder of the cheque must make a
        demand for the payment of the "said amount
        of money" by giving a notice in writing to the
        drawer of the cheque within thirty days from
        the receipt of the notice from the bank that
        the cheque was returned dishonoured; and

        (iii) The holder of the cheque fails to make the
        payment of the "said amount of money" within
        fifteen days from the receipt of the notice.

      35.    It is also apt to discuss that a negotiable
instrument        including   a    cheque   carries   following
presumptions in terms of Section 118(a) and Section 139
of the N.I.Act.

             (i) Section 118 of the N.I.Act provides;
             Presumptions as to negotiable
             instruments; Until the contrary is
             proved, the following presumptions
             shall be made;

             (a) of consideration that every
             negotiable instrument was made or
                             29             C.C.No.53131/2023
KABC0C0100612023




             drawn for consideration, and that
             every such instrument, when it has
             been accepted, indorsed negotiated or
             transferred was accepted, indorsed,
             negotiated    or    transferred   for
             consideration:"

             (ii) Section 139 of the N.I.Act provides
             as follows:

             'Presumption in favour of holder it
             shall be presumed, unless the
             contrary is proved, that the holder of a
             cheque received the cheque of the
             nature referred to in Section 138 for
             the discharge, in whole or in part, of
             any debt or other liability".

       36.   Thus, the combined effect of Section 118(a)
and Section 139 of N.I.Act raises a presumption in favour
of the holder of the cheque that he has received the same
for discharge, in whole or in part of any debt or other
liability.

       37. For appreciating legal position, it is worth to
refer to the judgment of the Hon'ble Supreme Court in the
case of Hiten P.Dalal V.Bratindranath Banerjee: (2001)
6 SCC 16, wherein it was held that:
             "22. Because both Sections 138 and
             139 require that the Court "shall
             presume" the liability of the drawer of
             the cheques for the amounts for which
             the cheques are drawn, as noted in
             State of Madras vs.A.Vaidyanatha Iyer
             AIR 1958 SC 61, it is obligatory on the
                             30              C.C.No.53131/2023
KABC0C0100612023




             Court to raise this presumption in every
             case where the factual basis for the
             raising of the presumption had been
             established. "It introduces an exception
             to the general rule as to the burden of
             proof in criminal cases and shifts the
             onus on to the accused" (ibid). Such a
             presumption is a presumption of law,
             as distinguished from a presumption of
             fact which describes provisions by
             which the court 'may presume" a
             certain state of affairs. Presumptions
             are rules of evidence and do not conflict
             with the presumption of innocence,
             because by the latter all that is meant
             is that the prosecution is obliged to
             prove the case against the accused
             beyond      reasonable       doubt.  The
             obligation on the prosecution may be
             discharged      with     the    help   of
             presumptions of law or fact unless the
             accused adduces evidence showing the
             reasonable       possibility    of   the
             nonexistence of the presumed fact."

     38. Similar view has been taken by the Hon'ble
Supreme Court in K.N.Beena vs. Munyappan and Ors.,
AIR 2001 SC 289.


     39. Hon'ble Supreme Court in Kalamani Tex and
Anr. V/s Balasubramanian, 2021 SCC Online SC 75,
held that:
             "14. Adverting to the case in hand, we
             find on a plain reading of its judgment
             that the trial      Court completely
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KABC0C0100612023




           overlooked the provisions and failed to
           appreciate the statutory presumption
           drawn under Section 118 and Section
           139 of NIA. The Statute mandates that
           once the signature (s) of an accused on
           the cheque/negotiable instrument are
           established, then these 'reverse onus'
           clauses become operative. In such a
           situation, the obligation shifts upon the
           accused to discharge the presumption
           imposed upon him."

     40. From the ratio in the judgments, it is clear that
for the offence under Section 138 of the Act, the
presumptions under Section 118 (a) and Section 139 of
N.I.Act have to be compulsory raised as soon as execution
of cheque by the accused is admitted or proved by the
complainant and thereafter, burden shifts on the accused
to prove otherwise.

     41. It is pertinent to refer to the judgment of the
Hon'ble Apex Court in M/s Kumar Exports Vs. Sharma
Carpets, (2009) 2 SCC 513, wherein it was held:-

           "20. The accused in a trial under
           Section 138 of the Act has two options.
           He can either show that consideration
           and debt did not exist or that under
           the particular circumstances of the
           case     the    non     existence    of
           consideration and debt is so probable
           that a prudent man ought to suppose
           that no      consideration and debt
           existed. To rebut the statutory
           presumptions an accused is not
                          32             C.C.No.53131/2023
KABC0C0100612023




         expected to prove his defence beyond
         reasonable doubt as is expected of the
         complainant in a criminal trial. The
         accused may adduce direct evidence
         to prove that the note in question was
         not supported by consideration and
         that there was no debt or liability to be
         discharged by him. However, the
         Court need not insist in every case
         that the accused should disprove the
         nonexistence of consideration and
         debt by leading direct evidence
         because the existence of negative
         evidence is neither possible nor
         contemplated. At the same time, it is
         clear that bare denial of the passing of
         the consideration and existence of
         debt, apparently would not serve the
         purpose of the accused. Something
         which is probable has to be brought on
         record for getting the burden of proof
         shifted to the complainant. To disprove
         the presumptions, the accused should
         bring on record such facts and
         circumstances, upon consideration of
         which, the Court may either believe
         that the consideration and debt did
         not exist or their nonexistence was so
         probable that a prudent man would
         under the circumstances of the case,
         act upon the plea that they did not
         exist.   Apart from adducing direct
         evidence to prove that the note in
         question was not supported by
         consideration or that he had not
         incurred any debt or liability, the
         accused      may    also    rely    upon
         circumstantial evidence and if the
         circumstances so relied upon are
                            33             C.C.No.53131/2023
KABC0C0100612023




           compelling, the burden may likewise
           shift again on the complainant. The
           accused    may    also    rely  upon
           presumptions of fact, for instance,
           those mentioned in Section 114 of the
           Evidence     Act    to   rebut    the
           presumptions arising under Sections
           118 and 139 of the Act."

     42. Further, the above said principles have been
recently crystallized by Hon'ble Supreme Court in the case
of Basalingappa vs Mudibasappa, (2019) 5 SCC 418,
where it s held that:-
           "25. We having noticed the ratio laid
           down by this Court in above cases on
           Sections 118(a) and 139, we now
           summarise the principles enumerated
           by this Court in following manner:

           (i) Once the execution of cheque is
           admitted Section 139 of the Act
           mandates a presumption that the
           cheque was for the discharge of any
           debt or other liability.

           (ii) The presumption under Section 139
           is a rebuttable presumption and the
           onus is on the accused to raise the
           probable defence. The standard of
           proof for rebutting the presumption is
           that of preponderance of probablities.

           (iii) To rebut the presumption, it is open
           for the accused to rely on evidence led
           by him or accused can also rely on the
           materials        submitted    by       the
           complainant in order to raise a
                            34             C.C.No.53131/2023
KABC0C0100612023




           probable    defence.    Inference   of
           preponderance of probabilities can be
           drawn not only from the materials
           brought on record by the parties but
           also by reference to the circumstances
           upon which they rely.

           (iv) That it is not necessary for the
           accused to come in the witness box in
           support of his defence, Section 139
           imposed an evidentiary burden and not
           a persuasive burden.

           (v) It is not necessary for the accused to
           come in the witness box to support his
           defence."

     43.   In this case, execution of cheque is admitted
by the accused. Therefore, presumption mandated under
Section 139 of the Act will gets attracted. Indisputably,
the cheque was presented for encashment well within its
validity and that it was returned by the bank unpaid
because of insufficient funds. After the receipt of the
intimation of dishonour from the bank, the complainant
has issued a statutory demand notice within the period
stipulated under proviso (b) to Section 138 and the said
notice served on the accused. Accused has not made
payment of      amount covered under the dishonored
cheque. Therefore, offence under Section 138 of N.I.Act is
deemed to have been committed. The accused has failed
to probablize his defence(s). He has also failed to rebut the
                            35             C.C.No.53131/2023
KABC0C0100612023




presumptions under Section 118 (a) and Section 139 of
N.I.Act. Therefore, this court holds that the complainant
has proved that the accused has committed the offence
punishable under Section 138 of N.I.Act. Accordingly, I
answer Point No.1 in the Affirmative.
     44.   Point No.2:-Punishment prescribed for the
offence under Section 138 of Negotiable Instruments Act
is imprisonment for a period which may extend to two
years or with fine which may extend to twice the amount
of the cheque or with both. Considering the facts and
circumstances of this case, year of the transaction and the
rate of interest stipulated under Section 80 of NI Act, this
court is of the considered view that it is just and desirable
to impose fine of ₹5,80,000/- and out of the said amount,
it is just and proper to award a sum of ₹5,75,000/- as
compensation to the complainant as provided under
Section 357(1) (b) of Cr.P.C and the remaining sum of
₹5,000/- shall go to the State. In view of the findings
recorded above, I proceed to pass the following:
                         ORDER

Acting under Section 255(2) of Cr.P.C., accused is convicted for the offence punishable under Section 138 of Negotiable Instruments Act. He is sentenced to pay a fine of ₹5,80,000/-. In default to pay fine, he shall undergo simple imprisonment for a period of four months.

36 C.C.No.53131/2023

KABC0C0100612023 Out of the realized fine amount, a sum of ₹5,75,000/- is ordered to be paid to the complainant as compensation and the remaining sum of ₹5,000/- shall be remitted to State.

Bail bonds executed by accused shall stand cancelled.

Office to supply a free copy of this judgment to accused.

(Dictated to the Stenographer, transcript computerized by her, revised corrected and then pronounced by me in the open Court on this the 19th day of March, 2025) ( SANTHOSH S.KUNDER ) XIV Addl. C.J.M., Bengaluru.

ANNEXURES List of witnesses examined for the Complainant:

PW.1 Mrs.Champa K.C List of documents marked for the Complainant:

Ex.P.1      Cheque
Ex.P.1(a)    Signature of the accused
Ex.P.2       Bank endorsement
Ex.P.3       Copy of legal notice 09.11.2022

Ex.P.4 to 6 Postal receipts-3 Ex.P.7 Postal track consignment report Ex.P.8 Reply notice Ex.P.9 Extract of resolution passed by the trusties of the complainant dated 37 C.C.No.53131/2023 KABC0C0100612023 21.12.2022 Ex.P.10 Bank statement of complainant Ex.P.11 Certified copy of letter dated 30.07.2022 written by the accused to the complainant Ex.P11(a) Signatures of the accused & (b) List of witness examined for the defence:

DW.1 Zeharan Khateeb List of documents marked for the defence: NIL XIV Addl.C.J.M., Bengaluru.