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Bangalore District Court

For The Offence Punishable U/S.138 Of vs Approached For The Purpose Of Batteries ... on 23 February, 2017

                          1        CC.NO. 23788/2015



   IN THE COURT OF THE XV ADDL CHIEF
METROPOLITAN MAGISTRATE: BANGALORE CITY.

      Dated this the 23rd day of February 2017
         Present: Sri.V.S.Pandit,B.A.,LL B.,
               XV Addl.C.M.M., Bangalore.

       Judgment U/s.355 of the Cr.P.C. 1973.
1.Sl.No.of the case           CC.No.23788/2015

2.Name of the Complainant:    Mr.Dharuman,
                              S/o.Late.Mahadevan,
                              Aged about 39 years,
                              Proprietor of M/s.Manjushree
                              Battery, office at No.71,
                              2nd Stage, Ashwathnagar Bus
                              Stand, Sanjaya Nagar Main
                              Road, Bangalore-560 094.

3.Name of the accused:        Mr.Gangaraju,
                              S/o.Not Known,
                              Aged by Major,
                              Residing at No.43,
                              First Floor, 2nd Cross,
                              Sonnappa Layout,
                              Near Rainbow International
                              School, Keregudadahalli,
                              Chikkabanawara Post,
                              Bangalore-560 090.

4.The offence complained of U/s.138 of Negotiable
                            Instruments Act.
:
5.Plea of the accused:        Pleaded not guilty.

6.Final Order:                Acting U/s.255(1) Cr.P.C.,
                              accused is Acquitted.
                                            2          CC.NO. 23788/2015



         7.Date of final Order                   23rd day of February 2017.


                                         ----------
         1. The        accused    has    been      prosecuted     by      the

complainant for the              offence       punishable    U/s.138       of

Negotiable Instrument Act - 1881 (hereinafter referred as

NI Act for brevity)

         2.     Case of the complainant in brief are as under -

         a.     It is the case of the Complainant that he is the

Proprietor of M/s.Manjushree Battery running business in

office        No.71,   II   Stage,   Ashwathnagar           Bus    Stand,

Sanjayanagar           Main      Road,         Bengaluru    having        TIN

No.29480747133 complainant running the business in the

address stated above. The said Firm is registered under

the trading activities and also authorized dealers of Exide

Batteries supplying different types of Batteries and

accessories to the customers.

         b.     It is further case of the complainant that

accused approached for the purpose of Batteries and other

components on credit basis. Accordingly under invoice

No.7165 dated 01.05.2015 invoice amount of Rs.69,944/-,
                                3          CC.NO. 23788/2015



invoice No 7166 dated 01.05.2015 for invoice No.30,649

and invoice No.7167 dated 01.05.2015 invoice amount

3,725/- worth batteries were purchased by the accused.

While purchasing batteries and other accessories accused

issued two post dated cheques from his personal bank

account for the first two invoices and further promised to

pay a sum of Rs.3,725/- by way of cash.

     c.    It is further case of the complainant that both

the cheques were presented through Syndicate Bank,

Sanjayanagar Branch, Bengaluru on 02.05.2015. On

04.05.2015 both the cheques have been returned unpaid

for the reason "Funds Insufficient". Thereafter accused

was informed about the dishonouring of the cheques. At

the instance of the accused, once again cheques were

presented for encashment. Again on 02.07.2015 cheques

were returned unpaid for the reason "Funds Insufficient".

     d.   Demand Notice was issued on 09.07.2015.

However, notice was returned with an endorsement

"Unclaimed". Therefore, the complainant constrained to

file the present complaint.
                                        4           CC.NO. 23788/2015




         3.   After     taking   cognizance,      this   court   issued

summons to the accused. In response to the summons,

accused appeared and was enlarged on bail. Plea for the

offence was read over and explained to the accused.

Accused pleaded not guilty and pleads his innocence.


         4. To sustain the charge leveled against the accused,

the complainant examined himself as PW.1 and got

marked the documents at Ex.P.1 to P.12 on behalf of the

complainant.

         5.     After     conclusion   of   the     evidence     of    the

complainant, statement of the accused u/s.313 Cr.P.C.,

was       recorded.      Accused    denied     the       evidence     and

documents as false. Accused did not lead any defence

evidence on his behalf. Additional written statement is

filed.

         6. Heard both sides.

         7. The points that arise for my consideration are as
under:-
                  1) Whether the complainant has proved
                 that cheque was issued by the accused
                                 5         CC.NO. 23788/2015



             for discharge of legally enforceable debt,
             the same was returned unpaid for the
             reason "Funds Insufficient" notice was
             not complied. Hence accused committed
             an offence under Sec.138 of N.I. Act ? ?
              2)    What Order ?
        8. My findings on the above points are as follows:
                Point No.1 : In the Negative,
                Point No.2 : As per final Order, for the
           following;

                                 REASONS


       9. Point No.1 -   It is the case of the complainant

that   under invoices No.7165 and Invoice No.7166 both

the dated 01.05.2015 batteries and other accessories

worth Rs.1,00,587/- were supplied to the accused. To

discharge the liability on 04.05.2015      and 02.05.2015

cheques were issued for repayment of the amount. On

presentation, both the cheques have been dishonoured for

the reason "Funds Insufficient". Despite service of notice,

accused did not bother to make the payment. Therefore,

the complainant is constrained to file the complaint.
                                      6         CC.NO. 23788/2015



      10.    It is the case of the accused that he did not

purchase the batteries and other accessories as alleged.

Cheques impugned were not issued for discharge of

liability   as   contended.        According    to   the   accused

complainant is having a chit transaction with one

Narayanaswamy and it is in this context the cheques

issued by the accused for security purpose has been

misused and false complaint has been filed.


      11. The learned counsel for the complainant at the

outset has submitted that signature and drawing of the

cheque from the account of the accused is not denied.

Therefore initial presumption has to be drawn that cheque

in question is issued for discharge of liability. Apart from

that it is contended that on perusal of the entire cross

examination       directed    to    the   complainant        except

suggestions there is nothing on record to discard the

evidence.    Therefore,      the   learned     counsel     for     the

complainant has sought for conviction.
                               7        CC.NO. 23788/2015



     12. As against these arguments the learned counsel

for the accused has invited the attention of the court

towards the cross examination directed to the complainant

and also taken through all records produced by the

complainant.   According to him Ex.P.3 and P.5 invoices

dated 01.05.2015 does not disclose that batteries and

other accessories were in fact supplied to the accused.

There is no records to show that the complainant is

running the business in the name and style of Manjushree

Batteries as alleged. Admittedly accused did not endorse

Ex.P.3 and P.5 invoices for having received the batteries

and other accessories. Apart from that the complainant

has admitted in his cross examination that there is a

difference in the style of making signature compared to

that of the contents written in the cheque. It is not the

case of the complainant that at the authority of the

accused cheque has been filled up. There is no records to

show that as on the date of issuance of the cheques

Rs.1,00,587/- is due. Ex.P.11 sales register and Ex.P.12

Vat Form No.100 does not disclose that batteries and
                                        8            CC.NO. 23788/2015



other accessories were in fact supplied to the accused.

Therefore for all these reasons learned counsel for the

accused sought for acquittal.


     13. The signature and drawing of the cheque from

the account of the accused is not denied. Therefore initial

presumption has to be drawn that cheque in question is

issued   for     discharge       of    liability.       However,       said

presumption is rebuttal in nature and it is for the accused

to   rebut     the   presumption            by    placing     direct     or

circumstantial       evidence.        The        onus    is    that      of

preponderance of probabilities.              Accused need not put

forth his defence beyond all reasonable doubt.


     14. On careful perusal of the cross examination

directed to the complainant wherein complainant has

admitted that in Ex.P.3 to P5 invoices there is no any

mention with regard to the name and address of the Firm

for which the materials have been supplied. Further it is

admitted that in case of transaction made in excess of

Rs.20,000/- filing of E-Sugama is mandatory. Further it
                                 9        CC.NO. 23788/2015



is admitted that complainant did not file E-Sugam in

respect of invoice as per Ex.P.3 to P.5. In Ex.P.3 to P.5

complainant did not obtain the signature of the accused.

In Ex.P.3 to P.5 there is no any mention that cheques in

question were issued for the discharge of the debt incurred

for the supply of batteries and other accessories.


     15. Complainant in further lines admitted         he do

not know the phone number of the accused and does not

know the address of the accused.      Apart from that it is

admitted, instead of issuing three invoices one invoice

could have been issued.       Further it is admitted that

normally in invoices the persons who received the

batteries and accessories will endorse by signing that the

materials supplied are in good condition.


     16. It is admitted that in Ex.P.11 i.e., sales register

from 01.05.2015 to 31.05.2015 cheque numbers have not

been mentioned in Ex.P.11 sales register. There is no

signature and seal of the concerned office. No records to

show that Ex.P.11 sales register as in fact sent to the
                                 10        CC.NO. 23788/2015



department. In Ex.P.12 sales tax returns there is no

mention with regard to number of invoices which is stated

in Ex.P.3 to P.5. It is admitted by the complainant that

previously also he had a transaction with the accused. But

further submits that since the transaction was made by

way of cash., therefore there is no records.


     17. It is also pointed out by the learned counsel for

the accused that complainant has stated in his cross

examination there is a difference in the style of writing

compared to the signature and other contents found in the

disputed cheques as per Ex.P.1 and P.2. Apart from that

complainant has admitted contents of Ex.P.1 and P.2 has

been written by the accused in the presence of the

complainant. It is admitted by the complainant that he

did not produce any records to show that he is the owner

of Manjushree Batteries and in Ex.P.11 and P.12 sales

register and VAT form the name of the complainant is not

found. There is no records to show that the accused is the

owner of Kamadhenu Enterprises.
                                11        CC.NO. 23788/2015



     18. If the above accused admission is taken into

consideration in the light of the documents produced by

the complainant in the opinion of this Court, the

complainant has failed to impress upon the Court that

cheques impugned as per Ex.P.1 and P2 have been issued

for discharge of liability. Based on Ex.P.3 to P.5 it cannot

be held that batteries and other accessories have been in

fact supplied to the accused.       On careful scrutiny of

Ex.P.3 to P5 the alleged invoices there is no any mention

with regard to the name of the accused and Firm. Further

there is no any endorsement made by the accused in

Ex.P.3 to P.5 for having received the goods. Further it is

relevant to observe and as rightly pointed out by the

learned counsel for the accused, that invoices at Ex.P.3 to

P.5 bears identical date i.e. 01.05.2015. If the goods were

supplied there was no difficult for the accused to issue one

single invoice instead of three invoices. Apart from that if

the cheques were issued for discharge of the liability for

having received the goods as per Ex.P.3 to P.5, since the

invoices contain only one date i.e., 01.05.2015, accused
                                12       CC.NO. 23788/2015



could have issued one cheque instead of issuing two

cheques for having allegedly received the goods on the

same day.


     19. Apart from that when the complainant asserts

that goods worth more than Rs.1 lakh was supplied to the

accused, under such circumstances, it is reasonable to

expect from the complainant to come out with all

particulars with regard to the background of the accused.

There is no records to show that accused is the owner of

Kamadhenu Enterprises. Further complainant admits in

his cross examination that he does not know the phone

number of the accused and address proof. Further it is

admitted that in Ex.P.3 to P.5 invoice there is no any

mention with regard to the name of the accused as well as

the address of the Firm.


     20. It   is   further   relevant   to   observe    that

complainant has admitted in his cross examination that in

case of transaction in excess of 20,000/- the same shall be

entered in E-Sugam or M.Sugam, therefore when the
                                 13         CC.NO. 23788/2015



complainant did not enter the transaction, as rightly

pointed out by the learned counsel for the accused

invoices at Ex.P.3 to P5 is to be held that the same is not

genuine. Since in Ex.P.3 to P.5 there is no mention with

regard to receipt of the goods by the accused.


     21. As rightly pointed out by the learned counsel for

the accused in Ex.P.11 sales register there is no records

with regard to the seal and signature of the department

and no records to show that Ex.P.11 was in fact sent to

the department. In Ex.P.12 VAT Form also there is no any

invoice number as per Ex.P.3 to P.5.


     22. It   is   further   significant   to   observe    that

complainant admits in his cross examination that there is

a difference in the mode of writing compared to the

signature in the disputed cheques. It is further relevant to

observe that complainant admits in his cross examination

that contents have been written by the accused in his

presence. If according to the complainant contents were

written in his presence and signature is also made in his
                                14        CC.NO. 23788/2015



presence, under such circumstances, there cannot be any

difference in the mode of making signature as well as

contents.


     23. The Hon'ble Supreme Court in the case of

John K.Abraham - Appellant Vs. Simon C. Abraham

2014 (2) SCC 236 it is held with regard to the ignorance

on the part of the complainant with regard to proper

execution of the cheque and writing contents as one of the

ground to rebut the presumption. In this case also the

complainant    has   failed   to    explain   under     what

circumstances two cheques have been issued by the

accused for one single transaction instead of one cheque.

Further failed to explain why there is a difference in the

mode of writing contents as well as signature when

according to the complainant both have been done in his

presence.


     24. Therefore overall examination of the material

placed on record by the complainant, it is not a fit case

wherein presumption is required to be drawn. No doubt,
                                   15         CC.NO. 23788/2015



accused did not conclusively prove that cheques in

question were issued for the chit transaction, but even

then prima-facie if the material placed on record by the

complainant is examined the issuance of the cheques for

discharge of the liability is not proved. Therefore, I answer

the above point No.1 in the Negative.


    25. Point No.2 : In the result, I proceed to pass the

following:-

                               ORDER

Acting Under Sec.255(1) Cr.P.C., the accused is Acquitted for the offence punishable u/s.138 NI Act.

Bail bond and surety bond of the accused shall stands cancelled.

(Dictated to the Stenographer, transcript thereof is computerized and printout taken by him, is verified and then pronounced by me in Open Court on this the 23rd day of February 2017.) (V.S.PANDIT), XV Addl. CMM., Bangalore.

16 CC.NO. 23788/2015

ANNEXURE Witnesses examined for the Complainant:-

PW.1 Dharuman Documents marked for the Complainant:-

Ex.P.1 & P.2 Two Original cheques Ex.P.1a & P2a Signatures the accused, Ex.P.3 to P.5 Three Invoice receipts, Ex.P.6 Bank endorsement, Ex.P.7 Copy of the Legal notice, Ex.P.8 & 9 Postal & Courier Receipts, Ex.P.10 Postal Envelope, Ex.P.10(a) Notice, Ex.P.11 Sales Register, Ex.P.12 Sales Tax Returns.
Witnesses examined For Defence:-
Nil.
Documents marked for Defence:-
Nil.
XV Addl.CMM., Bangalore.
17 CC.NO. 23788/2015
23.02.2017 (Judgment pronounced vide separate sheet) ORDER Acting Under Sec.255(1) Cr.P.C., the accused is Acquitted for the offence punishable u/s.138 of the N.I.Act.

Bail bond and surety bond of the accused shall stands cancelled.

(V.S.PANDIT), XV ACMM., Bangalore.

18 CC.NO. 23788/2015