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Bangalore District Court

Sri Hanumaiah vs Sri R.Nithyananda on 18 April, 2016

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

              Dated this the 18th day of April , 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.21475/2015

Complainant              :    Sri Hanumaiah, L.D.,
                              Son of Sri Dodda Hanumaiah,
                              Aged about 45 years,
                              R/at No.171. 1st Main, 7th Cross,
                              Kenchena Halli, Rajarajeswari Nagar,
                              Bangalore - 560 098.


                              (By Sri.Manjunatha Reddy .Adv.)
                      V/s.
Accused                      : Sri R.Nithyananda,
                               C/o Narayanamurthy,
                               Major in age,
                               Attender,
                               R/at Bangalore University Campus(press)
                               Rajarajeswari nagar,
                               Bangalore - 560 098.


                              (By Sri K.H.Prabhu,.Adv.)

Date of Institution           21-07-2015.

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

Plea of the accused           Pleaded not guilty
Final Order                   Accused is Acquitted
                                  2                  C.C.No.21475/2015



  Date of Order           : 18.04.2016.



     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 accused is a known person of the complainant          and

approached him in the month of Jan.2015 and requested the

complainant to lend a hand loan of Rs.7,00,000/- to discharge his

incurred debts. Having faith and confidence on the accused, the

complainant has given the said amount of Rs.7,00,000/- by way

of cash in the month of Jan.2015. On receipt of the said amount,

the accused promised to repay the said amount within two

months. The complainant approached the accused several times

to repay the amount of Rs.7,00,000/-. On repeated requests made

by the complainant, the accused has issued two cheques in

favour of the complainant vide cheque No.886891 and No.886893

dated 30-03-2015 for    a sum of Rs.3,50,000/- each       drawn on

State Bank of Mysore, Nagarabhavi branch Bangalore.             The

complainant presented the said cheques on 5-6-2015               for
                                    3                   C.C.No.21475/2015



encashment        through his bankers State Bank of India, Raja

Rajeswari Nagar branch. Bangalore . But the said cheques were

dishonoured due to "Funds insufficient" vide endorsement dated

8-6-2015. The complainant immediately contacted the accused

and intimated the accused regarding the bouncing of the cheques.

But the accused did not bothered to maintain sufficient amount

in   his   bank    account.   Having   no   other   alternative   ,   the

complainant got issued legal notice on 16-06-2015 to the

accused, calling upon the accused to pay the cheque amount. The

accused has not received the notice intentionally and inspite of

issuance of legal notice, he did not replied or complied the notice

and thus accused committed the offence punishable u/s. 138 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, he adduced his oral evidence as PW-1 by way of

affidavit and got marked Ex.P1 to Ex.P8 and at the time of cross-

examination of DW-1 got marked Ex.P9 and Ex.P10 and this
                                   4                 C.C.No.21475/2015



PW-1 has been fully cross examined by the accused counsel and

thus complainant closed his side evidence.


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

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

He in support of his denial, lead his oral evidence as DW-1 on

Oath and got marked Ex.D 1 and this DW-1 has been fully cross-

examined by the complainant counsel and thus closed his 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 he prays for convicting the

accused in accordance with law.


     . 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 in support of his contention, he

relied on the following decisions reported in


     ILR 2008 Karnataka 4629

     2015 AIR SCW 64

     2011(1) KCCR 118

     2005(3) KCCR 1576
                                       5                    C.C.No.21475/2015



Hence, he prays for acquittal of the accused in accordance with

law.


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

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

affidavit. In which, he reiterated complaint contention and got

marked Ex.P1 & 2 cheques alleged to be issued by the accused

and identified the signature of the accused as per Ex.P1(a) & 2(a).

This issuance of cheques in favour of complainant for discharge of

legal liability has been disputed by the accused. Further got

marked Ex.P3 and Ex.P4 are endorsements issued by the bankers

stating that Ex.P1 & 2 cheques were dishonoured due to ""Funds

insufficient". Ex.P5 is the copy of legal notice . This notice does

not contain the signature of the complainant except his counsel .

Ex.P6 is the postal receipt for having sent legal notice to the

accused . Ex.P7 is the postal cover returned with the postal shara

" door locked and hence legal notice returned. Ex.P7(a) is notice in

it. At the time of cross-examination of DW-1, in order to show the

amount comes to the complainant got marked Ex.P8 is the                   ªÀÄ£É

¨ÉÆÃUÀåzÀ PÀgÁgÀÄ ¥ÀvÀæ dated 29-1-2014 in which, one Hanumakka mortgaged the

schedule house to one Shashikala amounting to Rs.4,50,000/- . Ex.P9 is the

acknowledgement issued by the Rajarajeshwari nagar police station for having
                                           6                      C.C.No.21475/2015



receipt of complaint lodged by this accused. Ex.P10 is the reply statement of the

accused about the complaint lodged against the accused by one Nirmala in

which, she has stated that she obtained loan amount from various persons by

mentioning their names and the amount has undertaken to repay the said amount

if failed to do so, they can take action against this accused etc.. . The contents of

Ex.P10 has been disputed by the accused but he admitted that signature found on

Ex.P10 is belongs to him and his wife Divya. On the basis of the oral and

documentary evidence of complainant, prima facie proves the alleged guilt of the

accused.


       7. The accused has denied the entire case of complainant .

In support of his denial, he lead his evidence as DW-1 on Oath .

In which admitted that, he knows the complainant but at the time

of vacating the house at Kenchenahalli , this complainant used to

come to his house and packing house material belongs to the

accused. At that time, this accused kept signed blank cheques in

his almirah and hence, this accused has not obtained any loan

amount from the complainant and for discharge of the said

amount, he has not issued any cheque                         in favour of the

complainant etc.. But he admitted that the signature found on

Ex.P1 and Ex.P2 cheques belongs to him . Further in order to

show he was working at Printing Press got marked Ex.D1

I.D.Card.
                                  7                 C.C.No.21475/2015



     8. The complainant counsel cross-examined the DW-1 . In

the cross-examination, he tried to elicited that for repayment of

the legally recoverable debt, accused issued cheques in question,

the same are dishonoured due to "Funds insufficient".      Further

accused stated that for dishonestly taken the Ex.P1 and Ex.P2

cheques , this accused has not taken any legal action against the

complainant but he admitted that on 24-12-2014 one Nirmala

lodged complaint against this accused before Raja Rajeswari

nagar police station . For that, the accused and his wife given

their reply as per Ex.P10 . But the contents of the Ex.P10 has

been disputed by the accused.        But the signature found on

Ex.P10 is belongs to the accused and his wife. Further stated that

the accused and his wife knowing about one cannot put their

signature on blank paper and he denied that he obtained loan of

Rs.7,00,000/- from the complainant for discharge of the said

amount, he issued Ex.P1 and Ex.P2 cheques and the contents of

the cheques have been written by the complainant's son Raju etc..

Except the total denial of contention of complainant, the accused

had failed to given rebuttal evidence to the case of complainant to

show that the accused had not obtained any loan amount from

the complainant and others as per Ex.P10 reply given by the

accused and his wife before the police etc..
                                           8                       C.C.No.21475/2015



       9. As per the chief examination of DW-1, the accused

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

tried to elicited that in order to show the complainant has

sufficient    amount       with him        ,   he   has not       produced       any

documentary evidence but at the time of cross-examination of

DW-1, the complainant counsel produced Ex.P8 is ªÀÄ£É ¨ÉÆÃUÀåzÀ PÀgÁgÀÄ

¥ÀvÀæ to show that the amount comes to the complainant etc.. Except the total

denial of contention of complainant, the accused failed to given corroborative

evidence to support their defence.       Though the complainant has not stated

specific date on which, he lend the amount of Rs.Seven lakhs to the accused but

he has stated in the month of Jan.2015 the accused obtained loan of Rs.Seven

lakhs by way of cash for that, Ex.P8 ªÀÄ£É ¨ÉÆÃUÀåzÀ PÀgÁgÀÄ ¥ÀvÀæ which was stands in

the name of one Hanumakka . Whether the said Hanumakka is the wife of

complainant is not stated in Ex.P8. Hence, the case of complainant create

doubtful whether he really lend amount to the accused.


       10. In support of the case of complainant, the learned counsel for the

complainant submitted written arguments by narrating the facts and

circumstances of the case and submits that complainant had fulfilled all the

ingredients of the offence punishable u/s. 138 of NI Act and punish the accused

in accordance with law.
                                         9                     C.C.No.21475/2015



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

submitted written arguments by narrating the facts and circumstances of the case

and stated that the complainant has not specifically mentioned the date on which,

he advanced loan of Rs.Seven lakhs to the accused. The accused had given

rebuttal evidence to the case of complainant by examining himself and also legal

notice issued to the accused is not duly served and hence, this accused has not

given an opportunity to reply to the notice. In support of his contention, he

relied on the decision reported in ::


       ILR 2008 Karnataka 4629 (Shiva Murthy Vs.Amruthraj).
       In which Hon'ble High Court of Karnataka held that "
       U/s. 139 of NI Act , the court ought to have considered
       as to whether the complainant has proved the existence
       of legally enforceable debt.."

       2015 AIR SCW 64 (K.Subramani Vs.K.Damodar Naidu)
       In which Hon'ble Supreme Court of India held that the
       complainant had no source of income to lend sum of
       Rs.14 lakhs to accused--he failed to prove there is
       legally recoverable debt payable by accused to him...."

       2011(1) KCCR 118 (Bharathy Vs. Benigopal Jhawar). In
       which Karnataka High Court held that making a
       demand for payment of amount involved in the cheque
       by way of legal notice and thus there was non
       compliance of the provision of Section 138 of the Act.
       etc..

       2005(3) KCCR 1576 (Deviprasad Rai Vs. A.M.Ganesh
       Rai) In which Hon'ble High Court of Karnataka held that
       complainant must establish that the accused has
       issued notice by putting his signature on the postal
       acknowledgement.
                                  10                 C.C.No.21475/2015



     12. On the basis of the aforesaid decisions, the learned

counsel for the accused submits that the complainant has not

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

NI Act. Hence, accused is entitled for acquittal.


     13. On the basis of the aforesaid facts and circumstances of

the case in order to show the complainant lend huge amount of

Rs.Seven lakhs to the accused , he has not stated on which date

the complainant had lend huge amount of Rs.Seven lakhs to the

accused . The accused taken a contention that for dishonour of

the cheque , the legal notice not duly served to the accused. As

per Ex.P7 RPAD postal cover is returned with the postal shara "

Door locked and on the same cover, it is mentioned " Not in

address" etc.. Hence, for service of legal notice the complainant

has not examined the concerned postal authority to prove that the

legal notice sent to the accused duly served. Under these

circumstances, the case of complainant create doubtful whether

he really he lend Rs.Seven lakhs to the accused. The accused had

given rebuttal evidence to the case of complainant and the

aforesaid decisions relied by the accused counsel are squarely

applicable to the case of accused to show that the accused had

given rebuttal evidence to the case of complainant. Under these
                                   11                  C.C.No.21475/2015



circumstances, the accused in entitled to acquittal. Accordingly, I

pass the following :


                                ORDER

Acting u/s 265 of Cr.P.C., the accused is acquitted from the alleged offence punishable u/s 138 of N.I.Act.

Accused is set at liberty. His bail bond and surety bond shall stand cancelled.

(Dictated to the Stenographer, transcribed and computerized by her, corrected and then pronounced by me in the open court on this the 18th day of April, 2016) (NAGARAJEGOWDA.D) XXII ACMM, Bangalore city.

ANNEXURE Witnesses examined for the Complainant:

PW.1 : Hanumaiah L.D. Witness examined for the accused:

DW-1 : R.Nithyananda List of Documents marked for the Complainant:

Ex.P1 & 2              :   Cheques
Ex.P1a & 2a            :   Signature of the accused
Ex.P3 & 4              :   Endorsements
                               12                 C.C.No.21475/2015



Ex.P5              :   Legal notice
Ex.P6              :   Postal receipt
Ex.P7              :   Returned Postal cover
Ex.P7a             :   Postal shara.
Ex.P8                  House lease agreement.,
Ex.P9                  Acknowledgement by police
Ex.P10                 Reply to the Complaint to police
                       Inspector.

List of Documents marked for the accused:

Ex.D1              :   I.D.Card




                                   XXII ACMM, Bangalore.