Bangalore District Court
M/S. Kadamba Chits (Kar) Pvt vs Sri. Keerthi Sree on 7 November, 2019
IN THE COURT OF XXVII ADDL. CHIEF METROPOLITAN
MAGISTRATE, BANGALORE.
Present: Sri. N.Muniraja B.A., LL.M.,
XXVII A.C.M.M Bangalore.
Dated: This the 7th day of November 2019.
C.C. NO.12863/2019
Complainant M/s. KADAMBA CHITS (KAR) PVT
LTD.
Registered Office at:
No.151/1, 19th Main Road,
23rd Cross, 2nd Block,
Rajajinagar,
BENGALURU 560010.
Represented by its
Director-cum-Foreman,
Sri. Thimmaya N,
(Rep by Smt. L.R. Rajeshwari, Adv.)
Accused SRI. KEERTHI SREE
C/o. Krishnamurthy,
No.21, Ambica Nilaya,
1st Floor, 12th B Cross,
6th Main, Shreyas Colony,
J.P. Nagar,
7th Phase,
BENGALURU 560078.
Office Address:
Honey Well Orion Campus,
Emp. Code: IE3B,
Bellandur,
Doddakannelli Road,
Adish Palm retreat,
Bellandur,
BENGALURU 560103.
(Reptd by Sri. Raghavendra Adv.,)
2 C.C. No. 12863/2019
Offence U/s.138 of Negotiable Instruments
Act.
Judgment Date 07/11/2019
*****
JUDGMENT
The complainant chit 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 company is incorporated under the companies Act. The accused subscribed to Chit Group No.67001, Ticket No.46 for chit value of Rs.5,00,000/- payable at Rs.10,000/- p.m. for a period of 50 months conducted by the complainant company. The accused participated in the Chit auction held on on 14/10/2015 and forgoing bid amount of Rs.1,50,000/- received the prize money of Rs. 3,50,000/-. The accused is a chronic defaulter in payment of the Chit amount and he has issued cheque bearing No. 611682 dated:
07/02/2019 for a Rs.1,70,000/- drawn on State Bank of India, Bannerghatta Road Branch, Bengaluru in favour of the complainant company towards discharge of Future liability of 3 C.C. No. 12863/2019 the said chit. The complainant presented the said chequen 11/02/2019 through its Bankers The Karur Vyshya Bank Ltd., Rajajinagar Branch, Bengaluru for encashment and the same was returned on 12/02/2019 for the reason "Exceeds Arrangement". The complainant intimated to the accused about the dishonour of the cheque and he failed to make payment. The complainant got issued legal notice dated: 06/03/2019 demanding the accused to pay the cheque amount within 15 days from the date of receipt of notice. The notice sent to the residence address of the accused served on 12/03/2019 and the notice sent tot he office address served on 13/03/2019. The accused neither replied to the notice nor paid dishonoured cheque amount. Hence, this complaint.
3. Sworn statement affidavit of the Director-cum- Foreman of the complainant company filed and he examined as PW1 and got marked Ex.P.1 to 10 and ordered summons to the accused. The accused appeared through his advocate and he enlarged on bail. Substance of accusation read over to the accused and he claims to be tried. In view of the decision of the Hon'ble Supreme Court of India, reported in (2014) 5 4 C.C. No. 12863/2019 SCC 590 in the case of (Indian Bank Association & Ors V/s. Union of India & Ors), sworn statement of the complainant is treated as chief examination of the complainant. Subsequently both the complainant and accused have filed joint memo on 06/11/2019 and prays to pass judgment as per terms of joint memo.
4. Heard and perused the records.
5. The points that would arise for my consideration are as follows:
(i) Whether the accused is liable to be convicted in terms of the joint memo dated 06/11/2019.?
(ii) What order?
6. My answer to the above points are as follows:-
Point No.1 : In the Affirmative Point No.2: As per the final order, for the following.
REASONS
7. Point No.1 : It is the case of the complainant that, the accused had issued the cheque in question towards the payment of balance Chit amount and the said cheque 5 C.C. No. 12863/2019 dishonoured for reason Exceeds Arrangement and inspite of demand notice by the complainant, the accused has not paid the cheque amount. PW1 in his evidence affidavit has reiterated the contents of the complaint averments. In the course of evidence of PW1 got marked Ex.P.1 Cheque, Ex.P.2 Bank endorsement, Ex.P.3 Office copy of notice, Ex.P.4 & 5 Postal receipts, Ex.P6 & 7 Postal Acknowledgements, Ex.P.8 Ledger Account Extract, Ex.P9 Board Resolution dated:
15/01/2018 and Ex.P10 Authorization Letter. Though the accused at the time of recording of accusation claims to be tried, but subsequently both the complainant and accused have filed Joint Memo stating that they have arrived settlement of Rs.1,50,000/- and the accused already paid Rs.1,07,000/- and agreed to pay the amount of Rs.43,000/- cheque bearing No. 014651 dated: 15/12/2019 of State Bank of India and in default the accused under takes to pay double the said cheque amount. The complainant has agreed for the same. Therefore, the accused in the Joint Memo admits the liability towards the payment of the cheque amount to the complainant.6 C.C. No. 12863/2019
8. The materials placed on record by the complainant goes to show that after dishonour of cheque in question the complainant by serving demand notice to the accused has complied mandatory requirement of Sec.138(b) of N.I Act. As discussed above, both the complainant and the accused have filed Joint Memo and wherein the accused has already paid Rs.1,07,000/- and agreed to pay Rs.43,000/- to the complainant by way of cheque towards the liability of cheque amount and the complainant has agreed for the same. Hence, I answer Point No.1 in the Affirmative.
9. Point No.2:- In the Joint Memo filed herein, the accused has admitted to pay balance amount of Rs.43,000/-
to the complainant towards the cheque amount and the said amount is termed as fine amount payable to the complainant as compensation. In the result, I pass the following:-
ORDER Joint memo filed by both the complainant and accused is allowed.
Acting U/s.255(2) of Cr.P.C. the accused convicted for the offence punishable U/s.138 of the N.I Act and he shall pay an amount of 7 C.C. No. 12863/2019 Rs.43,000/- to the complainant as stated in the Joint Memo.
In default of payment of the said amount by the accused the complainant can recover double the cheque amount from the accused as if fine amount.
(Dictated to the stenographer, transcribed by her, corrected and then pronounced in open court by me on this the 7th day of November, 2019) (N.Muniraja) XXVII A.C.M.M., Bangalore.
ANNEXURE Witnesses examined on behalf of the complainant:
PW1 : SRI. RAMESH. B.K Documents marked on behalf of the complainant Ex.P1 : Cheque Ex.P1(a) : Signature of the accused Ex.P2 : Bank Endorsement Ex.P3 : Office copy of Legal notice dt: 06/03/2019 Ex.P4 & 5 : Postal receipts Ex.P6 & 7 : Postal acknowledgements Ex.P8 : Ledger account extract Ex.P9 : Board Resolution dated: 15/01/2018 Ex.P10 : Authorization Letter.8 C.C. No. 12863/2019
Witnesses examined on behalf of the accused:
Nil Documents marked on behalf of the accused: Nil XXVII A.C.M.M Bengaluru.9 C.C. No. 12863/2019
07/11/2019 Comp: LRR Adv., Accd: HNR Adv., For Judgment (Order typed vide separate sheet) ORDER Joint memo filed by both the complainant and accused is allowed.
Acting U/s.255(2) of Cr.P.C. the accused convicted for the offence punishable U/s.138 of the N.I Act and he shall pay an amount of Rs.43,000/- to the complainant as stated in the Joint Memo.
In default of payment of the said amount by the accused the complainant can recover double the cheque amount from the accused as if fine amount.
(N.Muniraja) XXVII A.C.M.M., Bangalore