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This is a complaint filed by the complainant U/Sec. 200 of Cr.P.C for the offence punishable under Sec.138 R/w Sec. 142 of N.I. Act as against the accused praying to punish the accused for the said offence.

2. The case of the complainant is that, it is engaged in the business of conducting chit transaction. The accused is a member of chit group bearing No. 25L25M3, Ticket No.11 for the chit value of Rs.25,00,000/- with monthly installment of Rs.1,00,000/- for a period of 25 months commencing on 15/2/18 and chit group no.5L5 ticket No.23 for a sum of Rs.5,00,000/- with installment of Rs.20,000/- per month and 25 installments commencing on June 2018. The accused became successful bider at the chit auction and received Rs.18,25,000/- under the chit group No.25L25M3 and Rs.3,00,000/- under the chit group No.5L5, after executing necessary documents. Thereafter, the accused became defaulter in payment of future installments and as such she was due for a total amount of Rs.7,81,000/- and Rs.2,75,000/- respectively. Upon request made by the complainant , she has issued 2 cheques for Rs.7,81,000/- and Rs.2,75,000/- respectively, which were dishonoured for want of sufficient funds in the account of the accused. As such, the complainant filed complaints against the accused in CC.17640/21 and 17643/21. Similarly the complainant also filed complaints against the daughter of the accused Smt.G.Harshitha under CC.No.17633/21, 17643/21, 17640/21 for the similar offences. In the said proceedings, the present accused and her daughter negotiated with the complainant and decided to compromise said cases and accordingly the complainant, the accused and her daughter have filed a joint memo agreeing to settle all the said 5 cases for a total sum of Rs.18 lakhs. As per the joint memo, the accused has to clear the said settlement amount on or before 16/4/22. But they have paid only Rs.3 lakhs and became defaulters in making payment of the remaining Rs.15 lakhs. Thereafter, the complainant obtained FLW from the court for recovery of said money and when he had been to the accused for execution of the FLW, the accused negotiated with the complainant and agreed to pay Rs.19,90,500/- including the said balance of Rs.15 lakhs along with accrued interest. Towards the discharge of the same, she had issued the cheque bearing no.287217 for a sum of Rs.10 lakhs on 28/8/23 drawn on Federal Bank, Thavarekere branch, Bengaluru in favour of the complainant company. As such, the complainant had presented the said cheque for encashment through his banker Punjab and Sind Bank, JC road Branch, Bangalore for encashment. But, the same was returned on 29/8/23 with an endorsement stating " FUNDS INSUFFICIENT " . Thereafter, the complainant got issued a legal notice dated: 30/8/23 calling upon the accused to pay the cheque amount within 15 days and the said notice was served upon the accused. But, the accused has neither made the payment covered under the said cheque nor replied to said notice. Accordingly, the accused has committed an offence punishable under Sec.138 and 142 of N.I Act. Hence, this complaint.

15. With regard to the merits of the case, it is the specific case of the complainant that the accused, her husband and her daughter have subscribed to different chit groups with the complainant company. As they have became defaulters in payment of chit instalments, and issued cheques towards payment of outstanding dues, the complainant had instituted two cases against the accused and 3 cases against her daughter-Harshitha u/s.138 of N.I.Act. In the course of trial of those cases, the complainant and the accused and her daughter have entered into a compromise and accordingly, they have filed a joint memo agreeing to pay a sum of Rs.18,00,000/- in total towards the amounts covered under said 5 cases. But the accused have not complied the terms of joint memo and not made payments as per the schedule. They have paid only Rs.3,00,000/- on 16/4/22 and failed to pay the remaining Rs.15,00,000/-. As such, the complainant had obtained FLW against the accused from the court. When the complainant approached the accused for execution of FLW, the accused have agreed to pay the balance amount along with accrued interest as per the joint memo to the tune of Rs.19,90,500/-. Towards part pay- ment of the said amount, the accused has issued the cheque Ex.P.5. In support of the case of the com- plainant, the representative of the complainant company was examined as PW 1 and got produced the alleged joint memo dtd: 18/12/21 filed in CC.17633/21 and connected cases as per Ex.P.4.

20. Further, in the course of cross examination of the PW1, it was suggested by the defence counsel that the execution of NBW and FLW was not reported to the court, which was admitted by the PW1. It is also admit- ted that as per the order sheet dtd: 19/8/23, said NBW and FLW issued against the accused were not executed. In this regard, the defence counsel has argued that if at all the accused have issued alleged cheques when the complainant went with the NBW and FLW against them, the same should have been reported to the court on the subsequent date of hearing. In this regard, on perusal of the order sheet produced by the accused as per Ex.D1, it appears that upon the accused becoming de- faulters, the court had issued FLW on 7/7/23. On 19/8/23 the court has re-issued FLW as the earlier one was not executed. But as per the complainant version when they went to execute NBW and FLW, the accused issued said cheque in July 2023. As such, on 19/8/23 the same fact should have been reported to the court. But, non-reporting the same would not render the case of the complainant untenable, because the chances of complainant intending to report the same after realizing the said cheques cannot be brushed away. That being the case, only because the complainant has not reported issuance of said cheques, it cannot be held that said cheques were not issued by the accused, when the ac- cused has utterly failed to prove the payment towards the joint memo even by way of preponderance of proba- bilities. Therefore, it appears very clear that when the accused became defaulter in payment of the amount agreed under Joint memo, the complainant approached the court and obtained NBW and FLW against the ac- cused . When the complainant approached the accused for execution of NBW and FLW, the accused might have negotiated with the complainant and issued said cheque towards payment of balance of Rs.15 lakhs along with accrued interest as per the joint memo.