Bangalore District Court
Tvs Credit Services Limited vs Narayana Ramanna on 6 May, 2026
SCCH-26 C.C.No.20384/2024
KABC020639832024
IN THE COURT OF XXIV ADDITIONAL SMALL CAUSES
JUDGE, & A.C.J.M. AT :BENGALURU (SCCH-26)
DATED THIS THE 6th DAY OF MAY 2026.
PRESENT : SRI. APPASAB NAIK,
B.A.L.L.B.(Spl)
XXIV ADDL. SCJ & ACJM
BENGALURU.
1. Sl. No. of the Case C.C.No.20384 of 2024
2. Name of the TVS Credit Services Limited,
Complainant Having its registered office at
Chaitnya No.12,
Khader Nawaz Khan Road,
Nungambakkam,
Chennai-600006,
and Regional office at
No.1613/31,
Vishnupriya Tower,
KBG Extension, MKK Road,
Nagappa Block,
Devaiah Park,
Bangalore-560 021.
Represented by its
Authorized Signatory,
Mrs. Kusuma Pavan Chokira,
Area Legal Manager and PA Holder
of the complainant,
Aged 33 years,
R/o Bangalore.
(By Sri. Subramanya K.-
Advocate)
SCCH-26 2 C.C.No.20384/2024
3. Name of the Narayana Ramanna,
Accused S/o Ramanna,
Taremaradapalya,
Kunigal Taluk,
BettahalliMutt B.O.,
Tumkur.
(By Sri. Y.D. Shivashankara-
Advocate)
4. The offence U/s.138 of the Negotiable
complained of Instruments Act
5. Opinion of the Accused found guilty
judge
-: JUDGMENT :-
The complainant has filed this complaint Under Section
200 of Cr.P.C. against the accused alleging that the accused
has committed an offence punishable U/Section 25 of the
Payment and Settlement System Act, 2007 R/w section .138
of the Negotiable Instruments Act, 1881. (In short N.I.Act).
2. The brief facts of the complainant's case are as
under:
The complainant is a non-banking financial company
registered under the provisions of Companies Act, 1956,
having its registered office at Chennai and regional office at
Bengaluru. On the request and representation of accused
and upon agreeing to various written terms, conditions,
SCCH-26 3 C.C.No.20384/2024
covenants and execution of agreement/loan account
No.KA3110LN0000698, dated: 20.10.2022, complainant had
granted the loan of Rs.4,00,000/- to the accused under the
product LN. As per the terms and conditions of the said
facility, the accused has agreed to pay the loan amount with
interest by way of monthly installments as per the
repayment schedule besides other charges to the
complainant. The accused has opted for NACH/ECS facility
of the complainant to repay the loan amount and he has
issued the mandate in favour of complainant. Accordingly
the accused has also issued NACH/ECS standing
instructions to his bank to debit EMI/outstanding dues/part
payment of Rs.1,37,325/- towards repayment of partial loan
as per the terms and conditions of the agreement to his bank
IDBI Bank Ltd., IFSC Code/MICR-IBKL0001508, from his
bank account bearing No.1508104000049434 corresponding
to credit the said amount to the account of the complainant
bank HDFC Bank situated at Hennur Road Branch,
Bangalore.
SCCH-26 4 C.C.No.20384/2024
3. The complainant after obtaining NACH/ECS mandate
which is authenticated by the accused and complainant
bank, sent the said mandate to NPCL (National Payment
Corporation Ltd.) for registration to avail NACH/ECS facility.
After receiving the said mandate from NPCL, it has sent the
mandate scanned image and relevant data to the accused
bank and same is accepted by the accused bank to debit the
said amount directly into the account of complainant's bank
situated at Hennur Road Branch on the due date, the
UMRN-IBKL0000000007405164. The accused has failed to
make the payment inspite of several requests and reminders
and as per the terms and conditions of the agreement to
maintain adequate balance in his account. Hence, the
NACH/ECS auto debit mandate represented by the
complainant to the accused bank account in respect of
EMI/outstanding dues/part payment dated:20.03.2024
amounting to Rs.1,37,325/- was returned with the memo as
"Balance Insufficient" on 22.03.2024 from the bank account
of the accused. The intimation of dishonour electronic funds
transfer has been received by the complainant's bank.
SCCH-26 5 C.C.No.20384/2024
4. The complainant has issued legal notice to the
accused on 27.03.2024 through RPAD by demanding the
accused to pay the amount against the said electronic funds
transfer within 15 days from the receipt of notice. The
postal acknowledgment shows that, notice delivered on
08.04.2024. In spite it, the accused failed to comply the
demands made in the notice. Hence, this complaint.
5. After perusing the contents of the complaint and
documents, this court has taken cognizance of offence
punishable u/s 138 of NI act and registered PCR. Thereafter,
this court has recorded the sworn statement of Legal
Manager and Power of Attorney Holder of complainant
company namely Mrs. Kusuma Pavan Chokira as PW.1 and
got marked 8 documents as Ex.P.1 to Ex.P.8. Since, the
complainant has made-out prima-facie case to proceed
against the accused, the case has been registered in
Criminal Register No.III and issued summons to the
accused. In response to the summons, the accused has
appeared before the court through his counsel and he was
enlarged on bail. Subsequently, plea was recorded and the
SCCH-26 6 C.C.No.20384/2024
substance of the accused was read over and explained to
him and he has pleaded not guilty and claimed to be tried
and further, the Statement of the accused U/Sec.351 of
BNSS was recorded and incriminating circumstances
appeared in the evidence against the accused was read over
to the accused and he has denied all incriminating
circumstance appeared in the evidence and chosen to lead
defence evidence.
6. In view of the principle lead down by the Hon'ble
Apex court in the case of Indian Bank Association & others
V/s Union of India and others, after appearance of accused
the sworn statement of the Power of Attorney Holder of the
complainant is treated as evidence of complainant as PW-1
and the documents produced by the complainant at the time
of sworn statement are considered as a document of the
complainant as Ex.P.1 to Ex.P.8. As per the principle laid
down by the Hon'ble Apex court in the case of Indian Bank
Association & others V/s Union of India and others, the
accused has filed application u/s 145 (2) of N.I.Act seeking
permission to cross examination of PW-1. Inspite of
SCCH-26 7 C.C.No.20384/2024
sufficient opportunity, P.W.1 has not been cross-examined
from the side of accused and cross of P.W.1 is taken as nil.
When the case was posted for defence evidence, at this
stage, the complainant and accused have filed joint memo
and prayed to pass Judgment on the basis of terms and
conditions enumerated in the joint memo.
7. Heard arguments of both side and perused the
materials.
8. From the above facts of the case, the points that
arise for my consideration are: -
1. Whether the accused is liable to be
convicted in terms of joint memo
dated:06.05.2026?
2. What Order?
9. My findings to the above points are as under :
Point No.1 : - In the Affirmative.
Point No.2 :- As per final order, for the
Following: -
:: R E A S O N S ::
10. Point No.1: - This court has already issued a
process to the accused and in response to it, accused ap-
peared and proceed with the trial, as such there is no need
SCCH-26 8 C.C.No.20384/2024
to go back again to reconsider the compliance of provisions
of Section 138 of Negotiable Instrument Act.
11. To attract the offence U/sec 25 (1) of the payment
and Settlement Systems Act,2007, makes it an offense for a
person to initiate an electronic funds transfer that is dishon-
oured due to insufficient funds or exceeding the pre- ar-
ranged credit limit in their account. The Provision applies
only when the transfer is for the payment of a debt or liabil-
ity and was initiated according to the system provider's
guidelines, as outlined in the provisos to the section. Section
25(5) of Payment and Settlement Systems Act, 2007, clears
that the provisions of Chapter XVII of the Negotiable Instru-
ments Act 1881 shall apply to the dishonour of electronic
funds transfer to the extent the circumstances admit. Chap-
ter XVII of N.I.Act, deals with Of Penalties in case of Dishon-
our of certain cheques for insufficiency of funds in the Ac-
counts, which was having section 138 to 148. Accordingly
the complainant is required to prove the existence of legally
enforceable debt for which electronic transfer in question
was agreed. As per to the section 139 of Negotiable Instru-
SCCH-26 9 C.C.No.20384/2024
ment Act, there is presumption in favour of complainant, as
to the existence of the legally enforceable debt or other liabil-
ity. But the said presumption is rebuttable.
12. The complainant in support of his case examined its
Power of Attorney holder Smt. Kusuma Pawan Chokira as
PW.1. In her evidence affidavit she has reiterated the
complaint averments and got marked the documents as
Ex.P.1 to 7. When the matter was posted for defence
evidence, the complainant and the accused have filed joint
memo and prayed to pass the judgment on the basis of
terms and conditions enumerated in the joint memo. The
accused has agreed to pay the amount of Rs.50,000/- in six
installments to the complainant company i.e., Rs.5,000/- on
06.05.2026 by way of cash, Rs.5,000/- on 20-06-2026,
Rs.10,000/- on 20-07-2026, Rs.10,000/- on 20-08-2026,
Rs.10,000/- on 20-09-2026, Rs.10,000/- on 20-10-2026.
Further the accused has undertaken to honour the six
installments without fail and in case of default to clear the
installments, the complainant shall take the appropriate
legal action against the accused.
SCCH-26 10 C.C.No.20384/2024
13. The complainant has agreed to receive the above
mentioned amount from the accused as full and final
settlement of the amount. The above payment shall be paid
on their respective date/time, failing which the complainant
will reserve all his rights to further proceed with the case
and take suitable action against the accused, in accordance
with law. Both the parties to the above case have agreed to
the terms and conditions and have on their own free will and
voilition signed this joint memo.
14. Therefore, when the accused has admitted liability
to the extent of Rs.50,000/-, the complainant acknowledged
through this joint memo and today, the complainant has
received the amount of Rs.5,000/- from the accused, hence
the court opinion that to the extent of Rs.45,000/-, accused
is liable to be convicted. As such, I answer point No.1 in the
Affirmative.
15. Point No.2: In the light of the above discussed facts
and circumstances of the case, I proceed to pass the
following:
SCCH-26 11 C.C.No.20384/2024
ORDER
Acting under Section 278[2] of BNSS, the accused is hereby convicted for the offence punishable under Section 138 of the NI Act R/w. Sec.25 of Payment and Settlement Systems Act 2007 and sentenced to pay fine amount of Rs.45,000/-(Rupees Forty Five Thousand) as stated in the joint memo. If the said amount is deposited, same shall be paid to the complainant as compensation.
The joint memo filed by both parties dated:06.05.2026 shall part and parcel of the record/judgment.
In default, accused shall undergo SI for a period of six months.
It is further made it clear that if the accused opt to undergo imprisonment, it does not absolve him from liability of paying compensation to the complainant.
Office is hereby directed to supply free certified copy of this judgment to the accused forthwith.
SCCH-26 12 C.C.No.20384/2024The bail bond of the accused and surety stands cancelled.
(Typed to my dictation by the stenographer, directly on computer, corrected, signed and then pronounced by me in the open court on this the 6th May 2026) (APPASAB NAIK) XXIV ADDL. SMALL CAUSES JUDGE & A.C.J.M. BENGALURU.
::A N N E X U R E::
I. LIST OF WITNESSES EXAMINED ON BEHALF OF THE COMPLAINANT:
P.W.1 : Smt. Kusuma Pavan Chokira. II. LIST OF DOCUMENTS MARKED ON BEHALF OF THE COMPLAINANT:
Ex.P.1 : Notarized copy of Power of Attorney.
Ex.P.2 : NACH report.
Ex.P.3 & : Office copy of legal notice with
4 translated copy.
Ex.P.5 & : Postal receipts.
6
Ex.P.7 : Postal Track Consignment.
Ex.P.8 : Certificate U/Sec.63(4)(b) of BSA. III. LIST OF WITNESSES EXAMINED ON BEHALF OF THE ACCUSED:
- NONE -
IV. LIST OF DOCUMENTS MARKED ON BEHALF OF THE ACCUSED:
Digitally signed by
APPASAB APPASAB RAMAPPA
- NIL - RAMAPPA NAIK
Date: 2026.05.15
NAIK 11:41:48 +0530
(APPASAB NAIK)
XXIV ADDL. SMALL CAUSES JUDGE & A.C.J.M. BENGALURU.