Bangalore District Court
M/S. Nutri Feeds And Farms Pvt vs Sri. Monichan on 2 November, 2021
IN THE COURT OF XXVII ADDL. CHIEF
METROPOLITAN MAGISTRATE, BENGALURU
Present: Sri. T. GOVINDAIAH. B.Com., LLB.,
XXVII A.C.M.M Bengaluru
Dated: This the 2nd day of November 2021
C.C. NO.26510/2016
Complainant M/S. NUTRI FEEDS AND FARMS PVT
LTD, A Company duly registered under
Companies Act.
Duly Represented by its
Authorized Manager,
Sri. Venkataraman Hegde,
S/o. Ganapati Hegde,
Aged about 50 years,
Off: Unit No. 904, 9th Floor,
H.M.T. Main Road,
Brigade Rubix,
Bengaluru 560013.
(Reptd by Sri. Shashi Kumar B.H, Adv)
V/s
Accused SRI. MONICHAN
S/o. IPE Philiphose
Proprietor of "BMATHA TRADERS"
Aged about 55 Years,
Office/Shop at No. Kottamala Post,
Narkilakkad, Nileshwar,
Kasargod District 671314
KERALA STATE.
(Rep by Sri. R.M, Adv)
Offence U/s.138 of Negotiable Instruments
Act.
Plea of the Pleaded not guilty
accused
Final Order CONVICTED
Judgment Date 02/11/2021
2 C.C.No.26510/2016
JUDGMENT
The complainant company filed this complaint against the accused for the offence punishable U/s.138 of the Negotiable Instruments Act.
2. Brief facts of the complainant case are as follows:
The complainant is running a own Broiler poultry farms and integrations Broiler poultry farms and selling Broiler Live birds and poultry feeds under the name and style M/s. Nutri Feeds & Farms Pvt Ltd., The accused was a regular customer and purchaser of commercial broiler poultry feeds from the complainant and he is running a distribution under the name and style of "MATHA TRADERS" at Kottamala Post, Narkilakkad, Nileshwar, Kasargod District, Kerala State. In pursuant of orders placed by the accused the complainant supplied broiler poultry feeds for total value of Rs.3,04,019 to the 3 C.C.No.26510/2016 accused on credit basis under invoices mentioned below:-
E-Sugam Form Sl.No. Date In voice No. Amount Nos.
1 04/05/2016 18552431670 TBR/16/0409 2,23,584.00
2 04/05/2016 18512431793 TBR/16/0410 80,510.00
Total Amount in Rs. 3,04,094.00
For the commercial poultry feeds supplied to the accused is due of Rs.3,04,019/- On persistent demands made by the complainant to pay the outstanding arrears, the accused issued Cheque No. 013003 dated: 22/06/2016 for Rs.3,04,019/- drawn on Federal Bank Ltd., Beemanodi, Kasargod 671314. The complainant presented the said cheque for collection on 22/06/2016 through Vijaya Bank, Rajajinagar Branch, Bengaluru and the said cheque returned with an endorsement dated:
24/06/2016 as "Funds Insufficient". The complainant brought the said fact to the accused and demand to make payment. But, the accused fails to make payment. The complainant sent legal 4 C.C.No.26510/2016 notice dated: 20/07/2016 through RPAD calling upon the accused to pay the dishonoured cheque amount within 15 days from the date of receipt of the notice and the said notice served to the accused. The accused neither paid the cheque amount nor replied to the notice. Hence, this complaint.
3. The accused appeared through his advocate and he enlarged on bail. Substance of accusation is framed and the same is readover and explained to the accused to which the accused pleads not guilty and claims to be tried. Then the case is posted for complainant evidence. On behalf of the complainant its Representative and Authorized Manager examined as PW1 and got marked 12 documents as per Ex.P1 to 12. On closure of the complainant side evidence, the case was posted for cross-examination of PW1. But, the accused not secured in spite of several NBWs issued by this 5 C.C.No.26510/2016 court. Then the case is posted for statement of the accused U/s.313 of Cr.P.C.. Thereafter, the accused regularly remained absent. In-spite of several NBWs issued against the accused, the same are unexecuted and accused not secured. Since the proceeding U/s.138 of the Negotiable Instruments Act are summary in nature. In view of the decision reported in the Hon'ble Supreme Court of India, in 2014 SCC 599 (Indian Bank Association and Ors Vs. Union of India & Ors.) Statement of the accused U/sec. 313 of Cr.P.C., can be dispensed.
4. Heard the learned counsel for the complainant and perused the evidence and documents produced by complainant.
5. The points that would arise for my consideration are as follows:
(i) Whether the complainant proves that the accused issued 6 C.C.No.26510/2016 Ex.P.2 cheque towards discharge of any debt or liability and the said cheque dishonoured as "Funds Insufficient" in the account of the accused.?
(ii) Whether the complainant proves that after dishonour of cheque, served notice to the accused in compliance of Sec.138(b) of N.I Act?
(iii) What order?
6. My answer to the above points are as follows:-
Point No.1 : In the Affirmative Point No.2: In the Affirmative Point No.3: As per the final order, for the following.
REASONS
7. Point Nos.1 & 2: These two points taken together for common discussion to avoid repetition of facts and evidence. It is the case of the complainant that, the complainant is running a own Broiler poultry farms and integrations Broiler poultry farms and selling Broiler Live birds and poultry feeds under the name and style M/s. Nutri 7 C.C.No.26510/2016 Feeds & Farms Pvt Ltd., The accused was a regular customer and purchaser of commercial broiler poultry feeds from the complainant and he is running a distribution under the name and style of "MATHA TRADERS" at Kottamala Post, Narkilakkad, Nileshwar, Kasargod District, Kerala State. In pursuant of orders placed by the accused the complainant supplied proiler poultry feeds for total value of Rs.3,04,019 to the accused on credit basis under invoices mentioned below:-
E-Sugam Form Sl.No. Date In voice No. Amount Nos.
1 04/05/2016 18552431670 TBR/16/0409 2,23,584.00
2 04/05/2016 18512431793 TBR/16/0410 80,510.00
Total Amount in Rs. 3,04,094.00
For the commercial pultry feeds supplied to the accused is due of Rs.3,04,019/- On persistent demands made by the complainant to pay the outstanding arrears the accused issued Cheque No. 013003 dated: 22/06/2016 for Rs.3,04,019/- drawn on Federal Bank Ltd., Beemanodi, Kasargod 8 C.C.No.26510/2016 671314. The complainant presented the said cheque for collection on 22/06/2016 through Vijaya Bank, Rajajinagar Branch, Bengaluru and the said cheque returned with an endorsement dated:
24/06/2016 as "Funds Insufficient". The complainant brought the said fact to the accused and demand to make payment. But, the accused fails to make the payment. The complainant sent legal notice dated: 20/07/2016 through RPAD calling upon the accused to pay the dishonoured cheque amount within 15 days from the date of receipt of the notice and the said notice served to the accused. The accused neither paid the cheque amount nor replied to the notice.
8. PW1 who is the Authorized representative and Manager of the complainant company in his chief examination affidavit has reiterated the contents of the complaint averments. On behalf of 9 C.C.No.26510/2016 the complainant produced Ex.P1 Extract of Resolution passed in the meeting of the Board of Director of the complainant company held on 16/06/2016. The said document goes to show that PW1 is Authorized to represent the complainant company before the court of law.
9. On behalf of the complainant produced Ex.P6 & 7 Invoices to show the supply of poultry live-birds to the accused. The complainant produced Ex.P8 & 9 Ledger accounts extracts pertaining to the transactions of the accused.
10. It is pertinent to note that, the accused in the present case has failed to discharge the onus of rebutting the presumption available in favour of the complainant by raising a probable defence and oral as well as documentary evidence of the complainant has not been subjected to cross-examination by the defense counsel, even though sufficient 10 C.C.No.26510/2016 opportunities have been given to the accused.
Hence, the oral and documentary evidence of the complainant remained as unchallenged. The accused has not chosen to cross-examination of PW1. Then the case was posted for recording the accused statement U/sec. 313 of Cr.P.C.,. But, the accused remained absent and not secured in spite of several NBWs issued against the accused. When the accused regularly remained absent and this court assumed that there is no chance to secure the accused in this case. Lastly accused statement U/sec. 313 of Cr.P.C., is dispensed.
11. Ex.P1 to 12 documents clearly go to show that, the accused purchased Broiler poultry feeds with complainant company on credit basis. In the regard to the above said credit transactions the accused is due and liable to pay of Rs.3,04,019/- in favour of the complainant company. To pay the 11 C.C.No.26510/2016 balance amount, the accused issued Ex.P2 Cheque. On the assurance of the accused, the complainant company presented the said cheque for encashment. But the said cheque was dishonored with bank endorsement "Funds Insufficient". Thereafter, the complainant company have issued legal notice to the accused on 20/07/2016. But, the accused fails to pay the cheque amount.
12. Therefore, the presumption U/sec. 139 of the Negotiable Instruments Act raises infavour of the complainant. The said presumption is not rebutted by the accused. Therefore the evidence of PW1 and Ex.P1 to 12 would clearly establish the case of the complainant.
13. Further, the complainant issued notice to the accused and the accused and same was served on accused. Therefore, the complainant has complied the mandatory requirements of Sec.138(b) 12 C.C.No.26510/2016 of the Negotiable Instruments Act. Therefore, the complainant proved his case by producing consist and cogent material evidence. In view of above discussion, this court answered Point Nos.1 & 2 in the Affirmative.
14. Point No.3 :- In view of my findings on Points No.1 & 2 the complainant proved that the accused issued Ex.P2 cheque toward legally recoverable debts and the said cheque dishonoured and the complainant company has complied mandatory requirement of Sec.138(b) of the N.I Act by serving notice after dishonour of cheque. Hence, the accused is liable for punishment for the offence punishable U/s.138 of the Negotiable Instruments Act. In cheque bounce cases apart from punishment to the accused compensation can also be awarded to the complainant with respect to dishonoured cheque. Sec.138 of the Negotiable 13 C.C.No.26510/2016 Instruments Act empowers the court to punish the accused with imprisonment for a term which may extend to two years or with fine which may extend to twice the amount of the cheque or both. The complainant filed this complaint on 31/08/2016. The complainant has spent more than 5 years for redressal. The records reveal that the tactics adopted by the accused are caused delay in disposal of this matter. If Ex.P2 cheque honoured, the complainant company would have utilized the said amount for its business purpose and would have get substantials profit. But, the acts of the accused caused loss to the complainant and dragged the complainant to the court and made to incur expenses. Therefore, the above said circumstances, forced for imposition of fine twice of the cheque amount and award suitable compensation to the complainant and in the result, this court proceed to pass the following:-
14 C.C.No.26510/2016
ORDER The complaint filed by the complainant company against the Accused is allowed.
Consequently, acting U/s.255(2) of Cr.P.C, the accused is convicted for the offence punishable U/s.138 of the N.I. Act and sentenced him to pay fine of Rs.3,10,000/-. In default of payment of said fine amount, the accused shall undergo simple imprisonment for a period of Six months.
Out of the said fine amount ordered to pay Rs.3,05,000/- to the complainant as compensation and the remaining amount of Rs.5,000/- shall go to the state.
(Dictated to the stenographer on computer and then pronounced in open court by me on this the 2nd day of November, 2021) (T. Govindaiah) XXVII A.C.M.M., Bengaluru.
ANNEXURE Witnesses examined on behalf of the complainant:
PW1 : VENKATARAMAN HEGDE 15 C.C.No.26510/2016 Documents marked on behalf of the complainant:
Ex.P.1 : Copy of Board Resolution Ex.P.2 : Cheque Ex.P.2(a) : Signature of the accused Ex.P.3 : Bank endorsement Ex.P.4 & 5 : e-Sugam Forms Ex.P.6 & 7 : Invoices Ex.P.8 & 9 : Statement of Accounts Ex.P.10 : Copy of Legal Notice Ex.P.10(a) : Postal Receipt Ex.P.11 : Copy of complaint to the Post master regarding Delivery Status Ex.P.12 : complaint settled reply from Postal Department Witnesses examined on behalf of the accused:
-Nil-
Documents marked on behalf of the accused: Nil XXVII A.C.M.M Bengaluru.16 C.C.No.26510/2016
02/11/2021 Comp: Sri. SK Adv., Accd: Sri. RM Adv., For Judgment.` bv` (Order pronounced in the open court vide separate order) ORDER The complaint filed by the complainant company against the Accused is allowed.
Consequently, acting U/s.255(2) of Cr.P.C, the accused is convicted for the offence punishable U/s.138 of the N.I. Act and sentenced him to pay fine of Rs.3,10,000/-. In default of payment of said fine amount, the accused shall undergo simple imprisonment for a period of Six months.
Out of the said fine amount ordered to pay Rs.3,05,000/- to the complainant as compensation and the remaining amount of Rs.5,000/- shall go to the state.
(T.Govindaiah) XXVII A.C.M.M Bengaluru.