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Bangalore District Court

Sri K.Subba Rao vs Sri Y.A. Narasimha Murthy on 16 May, 2016

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

              Dated this the 16TH day of May , 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. 22481/2015

Complainant             :     Sri K.Subba Rao, Son of late K.Sathyam
                              Flat No. 505, Sairam Residency , Alkapuri
                              Township, Block B-III Puppalaguda,
                              Manikonda P.O. Hyderabad 500 039.

                              Presently at C/o Sri Jagadeesh Reddy,
                              Flat No. 409, Saranya Arcade, Jagadeesh
                              Reddy, Layout, Kasavanahalli , Off: Sarjapura
                              Road, Bangalore - 34.


                              (By Sri. B. Anjaneyalu.Adv.)
                      V/s.
Accused                      : Sri Y.A. Narasimha Murthy, M/s. N.N.Land
                               Developers & Builders, No. 32/B, RBI Housing
                               Colony, 3rd Block East, Jayanagar,
                               Bangalore - 560 011.

                              (By Sri B.Mohan,.Adv.)

Date of Institution           1-7-2015.

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

Plea of the accused           Pleaded not guilty
Final Order                   Accused is convicted
Date of Order                : 16.05.2016.
                                     2                  C.C.No.22481/2015



        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 accused is doing real estate

business in acquiring, developing and selling properties and had

given wide publicity that he has undertaken up a project of

development of properties and formation of layout of sites in

Adigarakallahalli village, Sarjapura Hobli, Anekal Taluk and

offered to sell the site to the general public and invited application

from the interested persons who are interested to own sites in the

proposed project. The complainant was interested to buy sites for

himself and also in the names of his wife and children and as per

the scheme floated by the accused, the complainant paid initial

deposits to the accused for allotment of sites to himself, his wife

and daughters.      The accused has received and acknowledged the

initial deposits from the complainant and issued separate receipts

as under:


Sl.No     Name of depositor        Date         Receipt    Amount
                                  3                 C.C.No.22481/2015



1.     Kotipalli Subba Rao      17-1-2010    199       2,00,000=00

       Kotipalli Mani

2.     Kotipalli Subba Rao      17-1-2012    624       2,00,000=00

       Kotipalli Mani

3.     Savaram Lavanya          17-1-2012    622       4,00,000=00

4.     Mamillapalli Ushashri 17-1-2012       623       2,00,000=00



The accused has not at all taken up the project of development of

properties and formation of residential layout of sites and thereby

he has failed to allot sites to the complainant and his family

members. The complainant had no other option but to withdrawn

from the bogus scheme floated by the accused and requested the

accused to refund the initial deposits remitted by him together

with interest and damages for the hardship, loss of interest,

mental agony suffered by himself and his family members as a

result of failure on the part of the accused to take up the

development project and to allot sites.   After repeated requests

and demands made by the complainant, the accused conceded

and agreed to refund the initial deposits together with interest

/damages. Accordingly, the accused has transferred a sum of

Rs.2,00,000/- to the complainant's bank account at ICICI Bank

through RTGS Money Transfer and gave a cheque No. 913181

dated 23-02-2015 drawn on Andhra Bank, Bangalore for a sum
                                     4                    C.C.No.22481/2015



of Rs.4,00,000/- which is encashed by the complainant for which,

the complainant has given separate receipt to the accused. For

the remaining balance amount the accused gave two post dated

cheques bearing No. 636574 dated 14-02-2015 for Rs.8,00,000/-

and another cheque bearing No. 025969           dated 18-5-2015 for

Rs.4,00,000/- drawn on the National Co-operative Bank Ltd.,

Gandhi Bazar Branch, Bangalore in favour of the complainant

towards the discharge of the part of the liability due by the

accused to the complainant and assured the complainant that he

would arrange sufficient funds in his bank account to honour

both the cheques.    As per the request and instructions of the

accused, the complainant presented the cheque bearing No.

636574 for Rs.8,00,000/- for encashment through his banker

State Bank of Patiala, Bangalore . But the said cheque

dishonoured with Memo dated 12-05-2015 stating the reason

"Funds   insufficient"   in   the   ban   account   of    the   accused.

Immediately the complainant intimated to the accused about the

fact of dishonour of the cheque but accused failed to pay the

amount. Thereafterwards, the complainant got issued legal notice

on 22-5-2015 to the accused, calling upon the accused to pay the

cheque amount . The accused has avoided the service of notice

and it has returned unserved on 5-6-2015 with postal shara"
                                     5                 C.C.No.22481/2015



Intimation delivered, Not claimed, Return to Sender". . 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 as per Sec.357 of Cr.P.C., 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.P10 and this PW-1 has been

fully   cross   examined   by     the   accused   counsel   and   thus

complainant closed his side evidence.


        4. Thereafterwards, 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, he submits his side no defence

evidence, however at the time of cross-examination of PW-1, the

accused counsel got marked Ex.D1 to Ex.D5 and thus closed his

side defence evidence.


        5.   I have heard the arguments of both complainant and

accused counsel complainant on merit. In support of the case of
                                  6                  C.C.No.22481/2015



complainant, he relied on the following decisions reported in

:2012 KCCR page 4360, AIR 2007 SC 1721, AIR 2011 SCW 1886

and AIR 2011(3) Kar 1. Hence, prays for convicting 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 cheque alleged to be issued by the accused and

identified the signature of the accused as per Ex.P1(a).       This

issuance of cheque in favour of complainant for discharge of legal

liability has been disputed by the accused. Further got marked

Ex.P2 is an endorsement issued by the bankers stating that Ex.P1

cheque was dishonoured due to "Funds insufficient". Ex.P3 is the

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

the complainant except his counsel . Ex.P4 is the postal receipt.

Ex.P5 is the postal cover returned with the postal shara

"Intimation delivered " etc.. Ex.P6 to Ex.P9 are receipts for having

issued notice to the complainant as per the contents of the

complaint . Ex.P10 is the Formed residential Sites made by the

accused. This letter issued on 16-11-2011 along with this letter .

Ex.P10(a) is the layout Plan and Ex.P10(b) is the colour Map of

existence of the proposed development of Site. Etc.. On the basis
                                  7                 C.C.No.22481/2015



of the oral and documentary evidence, prima facie complainant

proves that the complainant had invested the various amounts to

the accused in order to purchase site from the accused etc...


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

In support of his denial, he submits that his side no defence

evidence however, the accused counsel cross-examined the PW-1 .

In the cross-examination     , he has stated that apart from this

case, he has not filed any other case against this accused with

respect of cheque No. 025969. But he has admitted that on the

Xerox receipt one K.Subba rao signature belongs to this

complainant and hence, the complainant had identified this

receipt and got marked as Ex.D1. Further he has stated that as

per Ex.D1 receipt, he has not received any amount from the

accused etc.. Further on 23/2/2015, he issued another receipt in

favour of accused as Ex.D2 and as per the contents of Ex.D2

receipt is correct.   Like wise, in the other Xerox receipt as per

Ex.D3 belongs to this complainant and as per this receipt, he

received the amount from the accused towards the purchase of

Site etc.. Further admitted that after issuance of legal notice to

this accused, accused issued reply notice as per Ex.D5 . In the

reply notice, he admitted facts and circumstances of the case of

complainant but instead of repayment of amount invested by the
                                  8                     C.C.No.22481/2015



accused, but on the basis of security cheque , he misused the

same and filed this case etc... Further got marked Ex.D4 is the

legal notice issued by the accused to one Subba rao regarding the

said transaction , the same is denied the complainant . But except

the total denial of contention of accused, the complainant failed to

prove that the accused not at all invested any amount in his

proposed project etc.. Further Ex.P1 cheque belongs to the

accused , the same is admitted by him and also he admitted the

signature found on Ex.P1(a) belongs to this accused. Whatever the

contention taken by the accused will not support the case of

accused to substantiate his contention.


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

the   complainant vehemently argued before this court that the

accused issued alleged cheque in question for discharge of legal

liability and he has taken untenable contention without giving

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

contention, he relied on the decisions reported in :


      AIR 2007 SC 1721, ( Smt. J.Yashoda Vs.Smt. Shobha
Rani) In which it is held that " Secondary evidence-
admissibility- documents in question were admittedly photo
copes- There was no possibility of said documents being
compared with original as same were with another person-
                                   9                  C.C.No.22481/2015



conditions in S. 65(a) had not been satisfied- documents
cannot be therefore, accepted as secondary evidence.. "

     2012(5) KCCR 4360 (Vasanth Madhava Vs. E.Seshadri
Kutti Dorai) in which it is held that " Evidence Act, 1878-
Section 65- Marking of document-Not proof of contents
thereof- secondary evidence of original document to be led
only in circumstances mentioned under- In absence of such
circumstances, question of proving document or admitting it
in evidence does not arise- Photocopy- cannot even be a
secondary evidence

     AIR 2011(3) Kar 1.( M/s. Disha Impex Pvt. Ltd Vs. M/s.
Srinivasa Minerals and Traders Ltd & Ors. ) It is held that
....comparison of disputed handwriting /signature- power of
court- can be exercised only in exceptional circumstances-
court can play role of expert if neither party calls an expert or
handwriting expert is not available .. etc.

     9. On the basis of aforesaid decisions and           facts and

circumstances of the case, prima facie complainant proved the

alleged guilt of the accused beyond all reasonable doubt. For

existence of legal liability , the accused issued cheque in question,

the same was dishonoured due to "Funds insufficient". If at all the

accused did not issue alleged cheque in question to the

complainant, why he has not instructed to the bankers to stop

payment of the cheque        but he did not do so. Under these
                                 10                 C.C.No.22481/2015



circumstances, the accused is liable for conviction in accordance

with law. Accordingly, I pass the following:


                              ORDER

Acting under Sec.265 of Cr.P.C. accused is Convicted for the offence punishable u/s 138 of N.I.Act and accused is sentenced to pay a fine of Rs.2,000/- ( Rs..Two thousand only) . In default of payment of fine amount, the accused shall undergo S.I. for a period of Two months.

The complainant was awarded compensation of Rs.16,00,000/- (Rs.Sixteen Lakhs only) i.e. double the cheque amount and the same shall be paid to the complainant by the accused within 30 days from the date of this order .

In default of payment of compensation amount, the accused shall undergo Simple Imprisonment for a period of Two years.

Office is directed to 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 16TH day of May, 2016) (NAGARAJEGOWDA.D) XXII ACMM, Bangalore city.

11 C.C.No.22481/2015

ANNEXURE Witnesses examined for the Complainant:

PW.1 : K.Subba rao Witness examined for the accused:

nil :

List of Documents marked for the Complainant:

Ex.P1              :   Cheque
Ex.P1a             :   Signature of the accused
Ex.P2              :   Endorsement
Ex.P3              :   Legal notice
Ex.P4              :   Postal receipt
Ex.P5              :   Returned postal cover
Ex.P5a                 Notice in it
Ex.P6 to 9         :   Receipts
Ex.P10                 Letter dtd 16-11-2011
                       By N & N Land Developers and
                       Builders
Ex.P10a                Copy of plan
Ex.P10(b)              Map

List of Documents marked for the accused:

Ex.D1-3 : Copy of receipts. Ex.D4 Notice dtd. 17-11-2015 Ex.D5 Reply notice dtd. 30-12-2015.
XXII ACMM, Bangalore.
12 C.C.No.22481/2015