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Bangalore District Court

Smt. Dhakshayani vs Smt. D.Lakshmi on 17 December, 2016

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

            Dated this the 17th day of December , 2016,

   PRESENT: SRI. NAGARAJEGOWDA.D, B.Com., LL.B.,
               XXII Addl.C.M.M., Bangalore City.


                 JUDGMENT U/S 355 OF Cr.P.C.


                      C.C.No.20694/2015

Complainant             :      Smt. Dhakshayani,
                               Wife of Sri M.Jagadish,
                               Aged about 41 years,
                               House wife,
                               Residing at No.8,
                               Swasthi Road Cross,
                               Shanthinagar,
                               Bangalore - 560 027.


                               (By Sri. K Honnaiah .Adv.)
                      V/s.
Accused                      : Smt. D.Lakshmi,
                               Wife of Sri Balachandra,
                               Aged about 44 years,
                               Residing at No.21, Central Street,
                               Akki thimmanahalli,
                               Shanthinagar,
                               Bangalore - 560 027.


                               (By Sri P.S.Devadas Asso,.Adv.)

Date of Institution            24-08-2015.

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

Plea of the accused            Pleaded not guilty
                                    2                      C.C.No.20694/2015



  Final Order                  Accused is convicted.
  Date of Order               : 17.12.2016.




       The complainant filed the private complaint u/s 200 of

Cr.P.C alleging that, the accused person has committed an offence

punishable u/s 138 of N.I.Act.


                         REASONS


       The brief facts of the complainant case is as follows:-


     2. The complainant submits that the accused is friend of the

complainant and both of them are residents of same locality. The

accused and her husband were started to put up construction in

their property. In this regard they need money and as such they

have    approached      the   complainant   and     her    husband     Sri

M.Jagadish for hand loan.          Accordingly, on 23-9-2011 the

accused was received a sum of Rs.3,00,000/-. Out of which a

sum of Rs.2,91,000/- by way of cheque and a sum of Rs.9,000/-

by way of cash from the complainant. Again on 24-09-2011 the

accused has received a sum of Rs.3,00,000/- by way of cash from

the complainant and her husband as the accused faced lot of

difficulty in completing the construction of her house and as such

on    21-1-2013   the    accused   has   received    another     sum    of
                                 3                 C.C.No.20694/2015



Rs.4,00,000/- way of cash from the complainant and her

husband as hand loan. Again on 16-9-2013 the accused received

a sum of Rs.2,50,000/- from the complainant and her husband

by way of cash and on this behalf on 16-9-2013 the accused has

issued receipt for having received the aforesaid loan amount from

the complainant.     The aforesaid loan amount paid by the

complainant and her husband to the accused through cheque and

also amount withdrawn from the bank and also out of their

savings. At the time of borrowing loan the accused assured the

complainant to return the said amount after let out her house on

lease or mortgage or by selling the house.       But even after

completion of her building she did not show any interest to

discharge the loan amount due to the complainant. The

complainant demanded the accused to return the loan amount for

which the accused has issued post dated cheque bearing

No.506889 dated 5-7-2015 amounting to Rs.3,00,000/- and

cheque bearing No.506890 dated 10-7-2015 for Rs.3,00,000/-

and   another    cheque    No.506892    dated    22-7-2015     for

Rs.6,50,000/- all the cheques are drawn on Canara Bank, Long

ford town branch, Bangalore , in favour of the complainant and

assured the complainant that the said cheques would be

honoured on its presentation. As per instruction of the accused,
                                  4                   C.C.No.20694/2015



the complainant has presented the said cheques on 23-7-2015 for

encashment of the cheques value of Rs.12,50,000/- through her

banker i.e. the Bharath Co-operative        Bank Ltd., Jayanagar,

Bangalore -11 but the same were returned by the bank of accused

on   24-7-2015    with   an   endorsement    "Funds    insufficient".

Thereafterwards, the complainant got issued legal notice on 30-

07-2015 to the accused, calling upon the accused to pay the

cheques amount of Rs.12,50,000/- . The notice sent by RPAD was

served to the accused on 31-7-2015 . Inspite of receipt of legal

notice, she did not replied     or complied the notice and thus

accused committed the offence punishable u/s. 138 & 142 of NI

Act and punish the accused in accordance with law and to award

suitable compensation , in the interest of justice and equity.


      3. The accused appeared before this court and contest this

case by denying the entire case of complainant at the time of

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

complainant, she adduced her oral evidence as PW-1 by way of

affidavit   and examined her husband as PW-2 and got marked

Ex.P1 to Ex.P17 and at the time of cross-examination of DW-1

got marked Ex.P18 and these PW-1 & 2 have been fully cross

examined by the accused counsel and thus complainant closed

her side evidence.
                                     5                  C.C.No.20694/2015



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

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

. She in support of her denial, lead her oral evidence as DW-1 on

Oath and got marked Ex.D1 to Ex.D12 and at the time of cross-

examination of PW-1 got marked Ex.D1 and this DW-1 has been

fully cross-examined by the complainant counsel but he wanted

to lead further cross-examination of DW-1 , the same is hereby

rejected by this court stating that       though the complainant

counsel cross-examined     the DW-1 three times etc..        and thus

closed her side defence evidence.


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

complainant submitted written arguments by narrating the facts

and circumstances of the case and submits that the complainant

had fulfilled all the ingredients of the offence punishable u/s.138

of NI Act and hence, prays for convict the accused in accordance

with law


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

accused submitted written arguments by narrating the facts and

circumstances of the case and stated that the accused had given

rebuttal evidence to the case of complainant. In support of his

contention, he relied on the decisions reported in :
                                  6                    C.C.No.20694/2015



     2013(3) KCCR 1940

     2009 (1)KCCR 508

     2014 (2) SCC

     ILR 2014 Karnataka 6572

     2009(1)DCR 420

     2009(1) DCR 422

     ILR 2008 Karnataka 4629

     Accordingly,   he   prays   for   acquitting   the   accused         in
accordance with law.



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

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

affidavit. In which, she reiterated complaint contention and

examined her husband Jagadish as PW-2 . He too also supported

the case of complainant and how the source of income comes to

the complainant and got marked Ex.P1 is the         ºÀt ¸ÀAzÁAiÀÄ gÀ²Ãw

alleged to be executed by the accused and her husband in favour

of the complainant and in which, she undertaken to repay the

loan of Rs.12,50,000/- which was obtained from the complainant

as a loan after sale of their Site within March, 2015 and identified

the signature of both complainant and accused and also her

husband as per Ex.P1(a) to Ex.P1(d). In this receipt the signature

of accused and her husband was not in the proper place but after
                                      7                 C.C.No.20694/2015



putting   the    signature   their   names   are   entered    above   as

D.Lakshmi and Balachander. In order to prove the execution of

this receipt. The complainant has not examined the witnesses .

One of the witness by name B.Ramesh has put his signature on

the receipt. Ex.P2 to Ex.P4 are cheques alleged to be issued by

the accused and identified the signature of the accused as per

Ex.P2(a) to 4(a).      These issuance of cheques in favour of

complainant for discharge of legal liability has been disputed by

the accused stating that the alleged cheque in question are issued

to one Krishna as security .But for what purpose the said cheques

are issued to the said Krishna is not stated by the accused . Ex.P5

to Ex.P7 are the bankers challan for having deposited the alleged

cheque in question for collection. Ex.P8 to Ex.P10 are the

endorsement issued by the bankers stating that Ex.P2 to 4

cheques are dishonoured due to "Funds insufficient". Ex.P11 is

the copy of legal notice.        This notice does not contain the

signature of the complainant except her counsel. Ex.P12 & 13 is

the RPAD postal receipt and DTDC Courier receipt for having sent

legal   notice    to   the   accused.        Ex.P14   is     the   postal

acknowledgement to show the legal notice sent to the accused by

RPAD was duly served . But accused contended that she has not

received any legal notice from the complainant but she admitted
                                  8                 C.C.No.20694/2015



that the addresses mentioned in the Ex.P11 legal notice belongs

to her. Further after issuance of Ex.P11 legal notice , the accused

and his wife made a galata against this complainant. Hence, the

complainant lodged complaint         to the Police Commissioner,

Bangalore on 8-8-2015 for that got marked Ex.P15 is the copy of

complaint . Further in order to show the complainant had paid

an amount of Rs.2,91,000/- to the accused and also her husband

a sum of Rs.3,00,000/- on 23-9-2011 and 24-9-2011 in their

names by way of cheque for that got marked Ex.P16 is the pass

book of Corporation bank stands in the name of husband of

complainant. Ex.P17 is the pass book of Corporation Bank to

show the husband of complainant had made several money

transaction with the bankers. Ex.P18 is an endorsement issued

by the Ashoka nagar police station , the same to marked at the

time of cross-examination of DW-1 . Inspite of service of legal

notice, the accused did not choose to reply or comply the notice

etc..


        8.   On the basis of oral and documentary evidence of

complainant, prima facie complainant had proved that the

accused has committed an offence punishable u/s. 138 of NI Act.
                                    9                 C.C.No.20694/2015



       9.      In support of the case of complainant, the Ln.counsel

for complainant submitted written arguments by narrating the

facts and circumstances of the case and submits that the

complainant had fulfilled all the ingredients of the offence

punishable u/s.138 of NI Act and hence, prays for convict the

accused in accordance with law


       10.    The accused has denied the entire case of complainant

. In support of her denial, she lead her evidence as DW-1 on Oath

. In which she has stated that, she knows the complainant for

the last 10 years and she has not raised any loan from her but

she given the alleged cheque in question to the owner of Hotel viz.,

one Krishna and she admitted that signature found on alleged

cheque in question belongs to her but the contents of the cheque

not belongs to her and she has not received any demand notice

from the complainant but she lodged complaint against the

complainant and her husband before Ashok nagar police station

as per Ex.D1. This Ex.D1 has been lodged during the pendency

of this case , the same is admitted by DW-1 at the time of her

cross-examination .     Hence, in order to support her case , she

after thought lodged this Ex.D1 complaint . Further in order to

show    she     made   Gruhapravesha    of   her   house   for   that,

Gruhapravesha Invitation card as per Ex.D2 and also in order to
                                 10                 C.C.No.20694/2015



show she obtained loan amount from the Oriental Bank of

Commerce and also she discharged the said loan amount for that

got marked Ex.D3 is the Bank statement of account and also

discharge letter issued by the bankers and also got marked

Canara Bank Loan sanction letter as Ex.D4 . Further on 26-2-

2016 she lodged complaint against the complainant husband for

threatening this accused for that, got marked copy of complaint

as Ex.D5.   Apart from it, she lodged complaint to the Human

Rights Commission for that got marked copy of complaint as per

Ex.D6 . Further she has stated that on 19-4-2012 she made a

rental agreement with one Mr.Anand Kumar and on 1-8-2013 she

made rental agreement with one Vasanthkumar and also the shop

rental agreement with him and also on 1-12-2013 she made

rental agreement with one Veeresh for that got marked Ex.D7 to

Ex.D11 are the rental agreements and further got marked Ex.D12

is the Subscribers account of the year, 2010-2015 of Margadarshi

Chit Pvt. Ltd., to show this accused is one of chit member with

the said private limited. On the basis of chief examination of DW-

1 coupled with the documentary evidence , the accused made a

loan from the bankers for construction of her house but at the

time of cross-examination of DW-1, she admitted that she has

spent Rs.50,00,000/- for construction of her house and she
                                 11                 C.C.No.20694/2015



obtained loan amount from the bank a sum of Rs.15 lakhs and

she also obtained various loan amount from various persons. For

that she could not able to say their names and she admitted that

in the month of July, 2015 she had no bank balance of

Rs.12,50,000/- in her bank account. She admitted that the

alleged cheques in question are belongs to her and the signature

found on the cheques are belongs to her . She has not received

any demand notice for dishonour of the cheque . But she

admitted that addresses stated in Ex.P11 notice belongs to her

and she denied that she issued alleged cheque in question for the

repayment of the loan amount borrowed from the complainant.

Further she admitted that loan borrowed from the Canara Bank

has been repaid out of loan amount borrowed from the Oriental

Bank of Commerce etc.. Ex.P12 is ledger of accused to show she

doing business.


     11. Further in her cross-examination , as per the rental

agreement one of the advocate also is under lessee of this accused

and she could not able to say his name. Further she admitted

that as per Ex.D2 statement of account stands in the name of

Lakshmi , proprietor though the accused is the Proprietor in that

company but at the time of raising loan in the bank, she given her

occupation as house wife . Except the denial of case of
                                12                  C.C.No.20694/2015



complainant,   accused   has not     produced   any corroborative

evidence to disprove the case of complainant .        though the

complainant counsel cross-examined      the DW-1 on 16-8-2016

and 30-8-2016 and ultimately on 4-10-2016 inspite of it , he is

seeking further time to lead further cross-examination of DW-1 ,

same has been rejected by this court and taken the cross-

examination of DW-1 as fully made.


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

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

has stated that this accused was introduced by her husband

through Krishna but she denied that through one Krishna and

the said Krishna is doing Real Estate but the said Krishna and

also doing finance business. Further in order to issue Ex.P11

legal notice to the accused, herself and her husband together

giving instruction to the advocate and in the notice, she has

specifically stated on which date the accused gave loan amount

but asked the loan amount during the year, 2011 for the purpose

of construction of building and the said amount has been given to

the accused but she could not able to say the exact date on which

she given the loan amount to the accused but she admitted that

in Ex.P1 e-stamp paper it is mentioned that the said e-stamp

paper was given in blank form except the signature of the accused
                                13                  C.C.No.20694/2015



and her husband and also she admitted that signature and the

contents of Ex.P2 to Ex.P4 cheques are written in different ink

and in different handwriting . But she has stated ignorance about

the signature found on the cheque       and also Ex.P14 postal

acknowledgement signature are different one. The amount given

to the accused a sum of Rs.3 lakhs was given by her father about

3 years back and she kept the money in her bank account for

that, she has produced bank pass book at Ex.P16 and Ex.P17 .

Further she admitted that as per Ex.P16 pass book on 24-9-2011

there is no name of this accused but she has stated that she

withdrawn the said amount by way of self but she denied that the

said amount has been used by herself was not given to this

accused etc.. and at the end of cross-examination of PW-1, there

was a money transaction along with this complainant and

Krishna and the alleged cheque in question was given to the said

Krishna , the same has been misused by her etc..


     13. Likewise in the cross-examination of PW-2, he too also

denied the entire case of accused saying that alleged cheques in

question was issued to one Krishna and from Krishna , this

complainant has misused the alleged cheque in question and in

his chief examination, he has stated he is doing Govt.Job and he

is getting monthly salary and he has no sufficient knowledge
                                   14                  C.C.No.20694/2015



about if any amount given to anybody, usually obtain receipt etc..

and he do not know when the accused constructed his house but

during the year, 2010 for that, Gruhapravesha card has been

produced as per Ex.D1. After lodging of the police complaint

against the accused and her husband , the police have advised to

settled their dispute before the court of law and the amount given

to the accused is not disclosed in his income tax returns and he

admitted that he is follower of Shanthinagar MLA Harish and he

has used the accused in his political work and lodged the police

complaint    against this accused though this accused has not

obtained any loan amount etc..         Except denial of contention of

complainant, the accused had failed to given rebuttal evidence to

the case of complainant.


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

the accused submitted written arguments by narrating the facts

and circumstances of the case and stated that the complainant

failed to prove for   existence of legal liability she issued alleged

cheque in question . The accused had given rebuttal evidence to

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

relied on the decisions reported in :


     2013(3) KCCR 1940(Smt. Lakshmi Subramanya Vs.
     Sri B.V.Nagesh) in which it is held that , Sec 138 and
                            15                  C.C.No.20694/2015



139 presumption arising out of dishonour of cheque -
Rebuttal of- standard of proof- Is one of
preponderance of probabilities.

2009 (1)KCCR 508(Sri A. Viswanatha Pai Vs. Sri
Vivekananda S.Bhat ) In which it is held that ...
whether the accused has to rebut the presumption
u/s.139 of the Act beyond all reasonable doubt...
etc.



ILR 2014 Karnataka 6572 (Sri H.Manjunath Vs. Sri
A.M.Basavaraju) In which it is held that , .......
Judgment of Acquittal is justified- As seen from the
complaint there is no statement as to when the
amount was actually given to the accused.......etc....



2009(1)DCR 420(Anjana Balkrishna Shewale Vs.
Chayya Baban Jagdale and anr) In which it is held
that .... Where the pleadings of complainant are not
established acquittal of accused is justified....etc



2009(1) DCR 422 ( Binod Kumar Lall Vs. State of
Jharkhand and anr) In which it is held that -
Dishonour of cheque - Acquittal- validity -
Appreciation of evidence - No source of income of
complainant- No evidence to show competency - No
factum as alleged was established - Consideration
of- Held - Where the pleadings are not established
acquittal of accused is justified... "



ILR 2008 Karnataka 4629 ( Shiva Murthy Vs.
Amruthraj) In which it is held that, .. Non
consideration of Existence of legally enforceable debt
failure of the complainant to prove- presumption
drawn merely on the basis of the conduct of the
accused--Legality of--.....etc..
                                    16                       C.C.No.20694/2015



     On the basis of aforesaid decisions , learned counsel for the

accused prays for acquittal of the accused in accordance with law.


     15. On the basis of oral and documentary evidence of both

complainant and accused and also the clear admission of DW-1 in

her cross-examination she obtained loan of Rs.15 lakhs from the

Bank and some other amount obtained from some other persons.

But she denied that for repayment of the said amount, she issued

Ex.P2 to Ex.P4 cheque in question to the complainant but to one

Krishna as a security, the same are dishonoured due to "Funds

insufficient" and inspite of issuance of demand notice, the

accused did not chose to comply or reply to the notice. As such,

whatever the decisions relied by the accused counsel are not fully

support the case of accused to show that the accused had given

rebuttal evidence to the case of complainant. As such accused is

liable for conviction . Accordingly, I pass the following:


                                 ORDER

The complaint u/s. 200 filed by the complainant is hereby allowed. No costs.

The accused is convicted for the offence punishable u/s.138 of NI Act.

The accused is sentenced to pay a fine of Rs.12,55,000/-. Out of the said fine amount, the 17 C.C.No.20694/2015 complainant is entitled to an amount of Rs.12,50,000/- i.e. the cheque amount as compensation and rest of the amount of Rs.5,000/- is forfeited to State Exchequer and the same shall be paid by the accused to the complainant within a period of 30 days from the date of this order. Failing which, the accused shall undergo Simple Imprisonment for a period of one year.

Supply free copy of this judgment to the accused forthwith.

(Dictated to the Stenographer, transcribed and computerized by her, corrected and then pronounced by me in the open court on this the 17th day of December, 2016) (NAGARAJEGOWDA.D) XXII ACMM, Bangalore city.

ANNEXURE Witnesses examined for the Complainant:

PW.1                      :   Smt. Dhakhayani
PW.2                          M.Jagadish

Witness examined for the accused:

DW-1 : D.Lakshmi List of Documents marked for the Complainant:

Ex.P1 : Receipt On e-stamp paper Ex.P1(a) Signature 18 C.C.No.20694/2015 Ex.P2 to 4 Cheques Ex.P2 to 4a : Signature of the accused Ex.P5 to 7 : Bankers challan counterfoils Ex.P8 to 10 : Bank endorsements Ex.P11 Legal notice Ex.P12 & 13 : Postal receipt & courier receipt.
Ex.P14             :   Postal acknowledgement
Ex.P15             :   Complaint
Ex.P16 & 17            Bank pass books

List of Documents marked for the accused:
Ex.D1 : House warming ceremony card Ex.D2 Statement of account Ex.D3 Oriental Bank of Commerce letter Ex.D3a Deed of Discharge Ex.D4 Sanction memorandum Ex.D5 & 6 Complaint to police Ex.D7 & 8 Rental agreement Ex.D9 & 10 Shop rental agreement Ex.D11 Rental agreement, Ex.D12 Ledger XXII ACMM, Bangalore.
19 C.C.No.20694/2015