APNE110001372022 1C.C.No.120/2022
IN THE COURT OF THE JUDICIAL MAGISTRATE OF FIRST
CLASS AT UDAYAGIRI
PRESENT: Sri J.Anjaiah, JCJ-cum-JMFC, Udayagiri.
Friday, this the 27th day of June, 2025.
C.C. No.120/2022
Between : Dirisala Bali Reddy @ Dhirisala Balireddy, S/o Bala Kota Reddy, Age : 44 years, R/o Ankireddypalli village, S.R.Puram Mandal, SPSR Nellore District. . . . Complainant.
And
Edama Thirupathaiah, S/o Venkataiah, Age : 53 years, R/o Flat.No.201, 2nd floor, Bindhu Elite, Narmada Constructions, Near Narayanapuram Colony bustop, Poranki-Nidamanuru Road, Vijayawada City, Krishna District. . . . Accused.
***
This case is came before me for disposal in the presence
Sri.Sk.Subhan Basha learned counsel for the complainant and Sri
S.Rama Rao learned counsel for the accused and after perusing the case records available on, upon hearing the arguments on both
APNE110001372022 2C.C.No.120/2022 sides and having stood over for consideration till this date, this
Court has delivered the following :
J U D G M E N T
[1.]This is a complaint filed under section 200 of Criminal
Procedure Code and under section 138 r/w 142 of Negotiable
Instrument Act seeking punishment of the accused for the offence punishable Under section 138 of The Negotiable Instrument Act (herein after referred to as 'N.I Act', for brevity), and for award of compensation.
[2.]The background facts in brief as projected by the complainant leading to filing of this case are : The accused borrowed a sum of Rs.6,00,000/- (Rupees Six Lakhs Only) from the complainant on 03.02.2021 and in evidence there of the accused had executed a promissory note on the said respective date in favor of the complainant duly signed and attested agreeing to repay the same with interest at the rate of 24% per annum to the complainant or his order on demand and delivered the said promissory note. On several demands made by the complainant that the accused had issued a cheque bearing.No.064570 dated 31.08.2021 for
Rs.6,00,000/- drawn on State Bank of India, Poranki Branch in favor
APNE110001372022 3C.C.No.120/2022 of the complainant towards part payment. Later the complainant presented the said cheque on 01.09.2021 before the Punjab
National Bank, Basinenipalli branch for encashment of the said cheque. The said bank sent the said cheque to State bank of India for realization and the State Bank of India after verification of the account of the accused and the said cheque was dishonoured with a reaosn as “funds insufficient” and returned the same to Punjab
National Bank and the Punjab National Bank was returned cheque along with memo on 13.09.2021. The complainant further submitted that he got issued legal notice on 28.09.2021 calling upon the accused for payment of due under the said cheque within the stipulated period as per statute. The accused received the said notice on 01.10.2021, but neither issue reply nor comply the demand of the complainant. The accused failed to pay the amount within the statutory period inspite of the notice and there is no discharge of the said debt as agreed upon. The accused committed the offence under section 138 r/w 142 of Negotiable Instrument Act with a prayer may be convict the accused and for award of compensation. Hence the complainant filed this complaint.
[3.]Considering the complaint and material on record this court taken on file for the offence punishable U/sec. 138 of the
APNE110001372022 4C.C.No.120/2022
Negotiable Instrument Act against the accused and issued process.
In response to the summons, accused entered his appearance. On examination of the accused U/sec. 251 of Cr.P.C putting the substance of the accusation levelled against him, accused pleaded not guilty and claimed to be tried. Upon which the complainant intends to prove the proposed guilt against the accused.
[4.]During the course of trial the complainant examined himself as PW1 and FIVE documents were marked as Ex.P1 to
Ex.P5. The complainant is P.W.1, With regard to the documents marked, Ex.P.1 is Cheque bearing No.064570, dt.31.08.2021
for an amount of Rs.6,00,000/-, Ex.P2 is Cheque return
memo, dt.13.09.2021, Ex.P3 is Office copy of legal notice
dt.28.09.2021, Ex.P4 is served postal acknowledgment card.
Ex.P5 is original promissory note dated 03.02.2021 for an
amount of Rs.6,00,000/-.
[5.]After completion of complainant side evidence, the accused was examined U/sec. 313 of Cr.P.C where under the incriminating material available in the complainant’s evidence was put to him, for which he reported everything as false and on behalf of the accused and he himself examined as DW1 and no documents
APNE110001372022 5C.C.No.120/2022 were marked on behlaf of the accused. The accused reported no further evidence. Hence the defence evidence is closed.
[6.] Heard the Learned counsels for rival contestants.
[7.] Now the point that arises for determination is that:-
“ Whether the complainant has proved the guilt of
accused for the offence punishable Under Section 138 of
Negotiable Instrument Act beyond reasonable doubt?”
[8.] EVIDENCE ON RECORD:- Before proceeding with the discussion of point framed it is appropriate first to see the gist of testimonies of witnesses examined on either side. P.W.1 is the complainant. In his chief affidavit P.W.1 reiterated the averments of complaint. On behalf of the accused, the accused denied the version of the complainant.
[9.] RIVAL CONTENTIONS:-During Arguments, it is submitted by the Learned counsel for the complainant that the complainant fulfilled the mandatory provision of Section 138 (b) of
N.I Act after dishonor of the cheque, the accused failed to comply the demand of the complainant and failed to issue reply notice also.
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Further argued that inspite of repeated demands made by the complainant that the accused failed to repay the said money. Later on demand of the complainant the accused issued cheque and when it presented the same was dishonored. To prove the version of the complainant, that the complainant filed Ex.P1 to Ex.P5. The complainant fulfilled all the essential ingredients of section 138 of
Negotiable Instrument Act. Further argued that though the defence taken plea that he gave the said cheque to one Vankela Madhu
Sudhan Reddy who is resident of Vijayawada for security purpose in the chit run by the said Madhusudhan Reddy. After repayment of the chit amount the accused asked the said Madhusudhan reddy to return the said cheque, but the said Madhusudhan Reddy never returned the same and later filed this false casle against the accused through PW1. But the defence failed to rebut the evidence of the complainant with probable evidence. Prayed this court may be convict the accused as per law and may grant compensation to the complainant.
[10.]On the other hand the learned defence counsel categorically argued that the accused is resident of Vijayawada and he do live by on business and he never came to Balayapalli of
S.R.Puram and never borrowed money from PW1. Further argued
APNE110001372022 7C.C.No.120/2022 that since 22 years the accused never borrowed money from anyone in and around of Udayagiri areas and he does not know
PW1. Further argued that he was one of the member of the chit run by one Vankela Madhusudhan Reddy and he gave one cheque to the said Madhusudhan Reddy for security purpose of the said chit, after repayment of the chit amount the accused is demanded the said
Vankela Madhusudhan Reddy for return of said cheuqe, he postpone the same, on believe the words of said Vankela Madhusudhan Reddy the accused left the said issue. Later the said Madhusudhan reddy foisted this false case through PW1 with an intention to harass the accused. Further argued that the complainant failed to prove his case and prayed this court may be dismissed this complaint and acquit the accused in the interest of justice.
[11.]DISCUSSION, DECISION AND REASONS THEREOF:-
In a criminal trial, one has to start with the presumption of innocence in favor of the accused which is also regarded as human right because no one can be convicted and punished merely on the ground of suspicion, however strong it may be. The prosecution is required to prove offence beyond reasonable doubt. In special prosecutions based on dishonour of cheque also the complainant is required to aver and prove the offence punishable under section 138
APNE110001372022 8C.C.No.120/2022 of the Act, but the advantage to the complainant is that he will be aided by the statutory presumptions which are self contained under sections 118 and section 139 of the Act, if he able to prove certain primary facts.
[12.]Section 139 of the Act lays down that it shall be presumed, unless the contrary is proved that the holder of the cheque "received" the cheque of the nature stated in Section 138 for the discharge of a debt or liability. A reading of Section 139 of the Act shows that a presumption in respect of a debt or liability can be drawn, if the following facts are established viz., i) that the person in whose favour the presumption is drawn is the holder of the cheque, ii) that the cheque is of the nature stated in Section 138 of the Act, iii) that such cheque is "received" by the holder. If the above three conditions are satisfied, the court can draw a presumption under Section 139 of the Act. The presumption under
Section 139 of the Act, as revealed from the title to section itself, is in favor of the "holder" of the cheque. Such presumption is drawn against an accused who, as in any other criminal prosecution, is presumed to be innocent. So, if the holder has to avail of the benefit of the presumption under Section 139 of the Act, the burden is on him to establish all the pre-requisites for drawing such presumption.
APNE110001372022 9C.C.No.120/2022
If the holder establishes the basis for raising a presumption under
Section 139 of the Act, the court shall draw such presumption.
When once the basis of presumption exists, the court is left with no other option than to draw such presumption under Section 139 of the Act.
[13.]Once the primary facts as above are averred and proved by the complainant in such case as required by the penal provision in section 138 of the Act, the statutory presumptions arising are required to be rebutted by "proof" on preponderance of probabilities. Such evidence may be by production of documents to disprove the complainant's version or by citing material elicited from the cross-examination of the complainant and her witnesses, if any.
[14.]We will examine whether the complainant/P.W.1 proved the pre-requisites to draw a presumption U/sec. 139 of the Act in his favor. According to P.W.1 that the accused borrowed an amount of Rs.6,00,000/- on 03.02.2021 and in evidence there of the accused had executed promissory note in favor of the complainant.
Inspite of repeated demands made by the complainant for repayment of the said debt that the accused had issued Ex.P1 cheque and when presented the same it was dishonoured under
APNE110001372022 10C.C.No.120/2022
Ex.P.2 and on that he got issued Ex.P3 legal notice, Ex.P4 is served acknowledgment card on the accused, Ex.P5 is promissory note executed by the accused. These same facts were stated by P.W.1 on oath in his evidence.
[15.]The accused pleaded that no consideration was passed under Ex.P1 and he never denied the signature of the accused on
Ex.P1 cheque. Further, it is not the case of accused that Ex.P.1 cheque was not drawn from the account maintained by him and the signature contains on Ex.P1 is belongs to him. Thus, it is clear that the accused admitted that Ex.P.1 cheque belongs to him and the signature containing in Ex.P1 cheque is belongs to him. Thus the complainant through his oral testimony coupled with documentary evidence i.e., Ex.P1 Cheque and when presented the same it was dishonoured under Ex.P.2 and on that he got issued Ex.P3 legal notice and Ex.P4 served postal acknowledgment card, discharged his initial burden that the accused had issued cheque for discharging of his part liability of borrowed money, thereby the complainant satisfied the requirements to come to a conclusion that the accused issued Ex.P.1 cheque and the same was dishonoured when presented.
APNE110001372022 11C.C.No.120/2022 [16.]The presumption referred to in section 139 of the Act is a mandatory presumption and not a general presumption. Thus, this court holds that complainant established that accused issued Ex.P.1 cheque in discharging of legally enforceable debt with the aid of section 139 of the Act.
[17.]Now we will examine that whether the accused established any probable defence that there is no exists legally enforceable debt for issuance of Ex.P.1 cheque. The accused in a trial under Section 138 of the Act has two options. He can either to show that consideration and debt did not exist or that under the particular circumstances of the case the non-existence of consideration and debt is so probable that a prudent man ought to suppose that no consideration and debt existed. To rebut the statutory presumptions an accused is not expected to prove his defence beyond reasonable doubt as is expected of the complainant in a criminal trial. What is required to be established by the accused in order to rebut the presumption is different from each case under given circumstances. But the fact remains that a mere plausible explanation is not expected from the accused and it must be more than a plausible explanation by way of rebuttal evidence. In other
APNE110001372022 12C.C.No.120/2022 words, the defence raised by way of rebuttal evidence must be probable and capable of being accepted by the court.
[18.]It has to be seen whether the accused rebutted the presumption under section 139 of Act which was raised in favor of complainant. It is settled law that the defence need not disprove the case of complainant to its entirety but its duty is to raise a probable defence which would satisfy the court that in the given circumstances the non existence of legally enforceable debt is probable rather than existence of legally enforceable debt, for this the defence need not confine to its evidence indeed it has no obligation to adduce evidence but can rely upon the evidence and circumstances of the prosecution case.
[19.]Under Section 139 of the Act, burden lies upon the drawer of the cheque to rule out the existence of the debtor-creditor relationship. The use of the phrase "until the contrary is proved" in
Section 118 of the Act and further use of the words "unless the contrary is proved" in Section 139 of the Act read with definition of "may presume" and "shall presume" as given in Section 4 of the
Evidence Act, make it clear that presumption to be raised under both the provisions are rebuttable.
APNE110001372022 13C.C.No.120/2022 [20.]In the instant case, the defence of accused is of two fold, one is based on facts, and the other one is technical in nature. We will consider one by one. The first plea of accused is that the complainant failed to fulfill the mandate of Statute that the statutory notice has to be issued within (30) days from the date of return of cheque. With regard to the issuance of legal notice there is no dispute between the complainant and accused. The complainant complied issuance of legal notice after dishonor of cheque within a stipulated time under section 138 (b) of Negotiable Instrument Act.
The learned defence counsel categorically pleaded that the accused never borrowed money from the complainant and never issued
Ex.P1 cheque to the complainant. Further pleaded that the accused gave cheque to one Vankela Madhusudhana Reddy as a security purpose in the chit run by the said Vankela Madhusudhan Reddy and after repayment of the chit amount the accused demanded the said
Madhusudhan Reddy for return of the said cheque, but the said
Madhusudhan Reddy postponed the same and believed the words of the said Madhusudhan Reddy, the accused left the said issue.
Perusal of the plea of the accused, that the accused categorically pleaded that he gave Ex.P1 cheque to the said Vankela
Madhusudhan Reddy for security purpose in the chit run by the said
Vankela Madhusudhan Reddy, but perusal of the testimony of DW1,
APNE110001372022 14C.C.No.120/2022 he never deposed in his cheif examination that the said
Madhusudhan Reddy was obtained blank promissory note from the accused. The accused pleaded only that he gave cheque to the said
Madhusudhan Reddy. If really, that the accused never executed the said promissory note in favor of the complainant if so, the accused ought to have send the said promissory note to the expert for opinion, but the accused never send the said promissory note to expert for opinion, for which there is no proper explanation from the accused. Further the accused pleaded that he gave Ex.P1 cheque to the Madhusudhan Reddy and later he filed this complaint against the accused through PW1. If so, the accused ought to have lodge report against the said Madhusudhan Reddy as he misused Ex.P1 cheque, but the accused failed to do the same, for which there is no proper explanation from the accused. Further if really the accused issued cheque to the said Vankela Madhusudhan Reddy as the security purpose of the chit amount and he repaid the chit amount to said Madhusudhan Reddy and the Madhusudhan Reddy never returned Ex.P1 cheque to the accused if so, the accused ought to have issue legal notice to the said Madhusudhan Reddy for non- return of Ex.p1 cheque to the accused, but the acucsed failed to do the same. For which there is no proper explantion from the accused.
APNE110001372022 15C.C.No.120/2022 [21.]Further the learned counsel for the complainant cross examined the accused, in the cross examination of DW1, DW1 categorically admitted that the signatures contains on Ex.P1 cheque and Ex.P5 promissory note are belongs to the accused. It seems to be the accused himself admitted the signatures contains on Ex.P1 cheque and the signature contains on Ex.P5 promissory note. As per
section 58 of the Indian Evidence Act facts admitted need
not be proved:- No fact need be proved in any proceedings
which the parties there to or their agents agree to admit at
the hearing or which, before the hearing, they agree to
admit by any writing under their hands or which by any rule
of pleading in force at that time they are deemed to have
admitted by their pleadings. Further in the cross examination of
DW1, DW1 deposed that he was issued Ex.P1 and Ex.P5 to the said
Madhusudhan Reddy in the year 2017 and this complaint was filed in the year 2023, there is a gap of 6 years even though the accused never took any steps for return of Ex.P1 & Ex.P5 from the said
Vankela Madhusudhan Reddy, for which there is no proper explanation from the accused. Further DW1 categorically admitted in his cross examination that prior to filing of this complaint, that the complaint was issued legal notice to the accused stating that the said cheque was dishonored. It seems to be the complainant
APNE110001372022 16C.C.No.120/2022 complied under section 138 (b) of Negotiable Instrument Act and fulfilled the mandatory provision, but the accused never gave any reply to the said notice. Further DW1 categorically admitted in his cross examination that there is no any proof of document to show that he gave Ex.P1 cheque to the said Madhusudhan Reddy.
[22.]The prosecution provided under section 138 of the Act is not a natural offence, and it is created by fiction of law, and technical in nature, and the complainant or the person in whose favour the cheque was issued is given right to file the prosecution when the same was dishonoured against the person issuing the cheque subject to fulfilling of certain procedural compliances. In that event, all the technical formalities as laid down under section 138 of the Act and other provisions of law has to be strictly complied with, failing which the complainant is not entitled for remedy in criminal court.
[23.]The specific case of complainant is that the accused borrowed money an amount of Rs.6,00,000/- on 03.02.2021 in evidence there of the accused executed a promissory note infavor of the complainant. Later on repeated demands made by the complainant that the accused had issued cheque bearing.No.064570
APNE110001372022 17C.C.No.120/2022 in favor of the complainant for an amount of Rs.6,00,000/- on 31.08.2021 drawn on State Bank of India. To prove the version of the complainant Ex.P1 to Ex.P5 are filed before this court. Further more as per section 59 of Indian Evidence Act proof of facts
by oral evidence :- All facts except the contents of the
documents (are electronic records ) may be proved by oral
evidence. It clearly shows that except the contents of the documents may be proved by oral evidence, but herein this case
Ex.P1 cheque is a documentary evidence, it prevails over the oral evidenceand there is no documentary evidence adduced by the accused to discard the Ex.P1 cheque that it was not issued to PW1.
In view of the above said discussion the plea of the accused is not taken into consideration. If really the accused was issued the said cheque and promissory note without any consideration and he came to know that the complainant was misused the said cheque and promissory note, if so, the accused ought to have issue legal notice to the complainant stating that not to misuse the same and to return the same to him. Further the accused never lodged any report to the police against the complainant, that the complainant was misusing his blank signed cheque and blank signed promissory note, the accused never gave any legal notice and never lodged any report to the police. What are the circumstances prevented the
APNE110001372022 18C.C.No.120/2022 accused for non-issuance of legal notice and non-lodging of report to the police against the complainant, for which there is no proper explanation from the accused. Perusal of the plea of the accused there is no cogent and reliable evidence in the plea of the defence.
Hence the plea of the accused is not taken into consideration. How the said cheque and promissory note was transferred into the hands of PW1. Mere name sake pleas cannot be acceptable, the defence to show more probable defence before this court to rebutt the evidence of complainant, mere plausible explanation cannot be accepted.
[24.] Perusal of the plea of the accused there are many issues that needs to clarification now. Let us list them here. Let us begin with the issue of sequence.
(i) In which month and date that the accused issued cheque to the said Vankela Madhusudhan Reddy ?
(ii) Why the accused failed to issue notice to the complainant and the said Madhusudhan Reddy about the misuse of Ex.P1 cheque and not to misuse?
APNE110001372022 19C.C.No.120/2022
(iii) Whether the accused put the alleged fact that the complainant and the said Madhusudhan Reddy was misusing the cheque and promissory note before any elders.? If yes who are that elders.? If not why.?
(iv) Why the accused failed to file a complaint against the complainant in the court of law when he knows about the said misusing of cheque and promissory note immediately.?
(v)Why the accused failed to lodge any report to the police against the complainant when he knows about the misusing of blank signed cheque and promissory note immediately ?
[25.]The above questions are most likely to be posed by any prudent person if the accused says that he has put forth his plea that the complainant obtained blank signed promissory note and blank signed cheque from the accused at the time of chit transaction. But the accused has no answer with him for at-least one question posed herein-before. If the accused not able to answer at-least one question of the above, how he expect that his plea would be straight away accepted by the court.? Is it not the
APNE110001372022 20C.C.No.120/2022 responsibility of the accused to bring into record sufficient material to satisfy the court?
[26.] The contention of defence is that at the request of the complainant and the accused was joined in the chit and the said
Madhusudhan Reddy was obtained blank signed promissory note and blank signed cheque from the accused as a security purpose and later the complainant foisted this false case against the accused to get wrongful gain from him is not a convincing one, because admittedly the accused never lodged any report against the complainant and never issued any legal notice to the complainant.
In doing so, the indicate is attributing to himself an improbable, artificial and indifferent conduct to claim exculpation from liability.
The laudable commercial morality which the legislature seeks to usher in by introduction of Section 138 into the statute book will be frustrated and stultified if courts were to readily and meekly accept and swallow such an explanation. If such a laudable commercial morality were to prevail, account holders will also have to deal with their cheques carefully, cautiously and reasonably and not without diligence, indifferently, unreasonably and irrationally. Even today such a defence may not be impossible or impermissible in a prosecution under Section 138 of the Act. But the burden must rest
APNE110001372022 21C.C.No.120/2022 squarely and heavily on the person who wants to attribute to himself such an irresponsible and indifferent conduct – that he pleaded the complainant obtained blank signed promissory note and cheque for security purpose is not to claim exculpation from liability.
[27.]The accused must borne in mind that bare denial of the passing of the consideration and existence of debt, apparently would not serve the purpose of the accused to seek dismissal of the complaint. Something which is probable has to be brought satisfactorily on record for getting the burden of proof shifted back to the complainant. Thus, in the absence of cogent evidence on behalf of accused regarding him that the complainant obtained blank signed promissory note and cheque as a security purpose, it suggests an inference of endorsement and delivery of instrument which impliedly admits that the complainant obtained blank signed promissory note and blank signed cheque as a security purpose, except the oral evidence there is no cogent and reliable evidence to prove the version of the accused.
[28.] Coming to the final discussion, primarily we have the evidence of P.W.1-complainant about the circumstances under which
Ex.P.1 cheque was issued to him, which admittedly written on a
APNE110001372022 22C.C.No.120/2022 cheque leaf issued to the accused by his banker to operate his account with the signature of the accused admittedly affixed thereon traveled from the possession of the accused to the possession of complainant. His evidence on this aspect is eminently supported by his ability to produce Ex.P.1 cheque. The complainant is also armed with the presumption under Section 139 of the Act.
On the other hand, accused not satisfactorily explained that how the cheque issued to him came into the possession of the complainant.
Accused not able to show any cogent evidence on his behalf to neutralize the presumption U/sec. 139 of the Act, and that a mere name sake pleas cannot be accepted to come to the conclusion that there is no legally enforceable debt exists between the parties at the time of issuance of Ex.P.1 cheque.
[29.]Further this court relied upon the judgment of the
Hon’ble Apex Court in Bir Singh Vs. Mukesh Kumar reported
in (2019) 4 SCC 197 held that once the other ingredients
mentioned in the foregoing paragraph or established by the
complainant, then as soon as the execution of impugned
cheque is admitted by the accused, a factual base is
established to invoke the presumption of the cheque having
been issued in discharge, in whole or in part, of any debt or
APNE110001372022 23C.C.No.120/2022
other liability by virtue of section 118 (a) r/w section 139 of
N.I Act. This is a reverse onus clause, which means that
unless the contrary is proved it shall be presumed that the
impugned cheque was drawn by the accused for
consideration and that the complainant had issued it in
discharge of debt/liability from the accused, once the
accused had admitted the signature on the cheque is in
question, then the court is bound to raise presumption under
section 139 of N.I Act. Herein this case also that the accused categorically admitted about the issuance of cheque and categorically admitted his signature contains on Ex.P1 cheque. The complainant proved other ingredients under 138 of Negotiable
Instrument Act. Hence the said judgment is squarely applicable to the present case facts.
[30.] " Further this Court relied upon the judgment of
Hon'ble Apex Court in Criminal Appeal No.123/2021 arising
out of special leave petition Crl.No.1876/2018 M/s Kalamani
Tex & Anr VP.Balasubramnian. In that the Hon'ble Apex
Court held in Beersing v. Mukesh Kumar, even a blank
cheque at leaf voluntarily signed and handed over by the
accused which is towards the same payment would attract
APNE110001372022 24C.C.No.120/2022
presumption under Section 139 of Negotiable Instruments
Act in the absence of any cogent evidence to show that the
cheque was not issued in discharge at debt".
[31.]Further this court relied another judgment of the
Hon'ble Apex court in I.C.D.S Ltd., Vs. Beena Shabeer
2002(3) KLT 280-held that the cheque was given by a
guarantor when it was bounced found to be within the fold
of section 138 of Negotiable Instrument Act. Necessarily the
cheque as a security, if bounced, shall be the subject matter
of a prosecution under section 138 of N.I. Act, so the
contention of the accused that Ex.P1 cheque was given only
as a security will not enable him to escape from the clutches
of law. Herein this case that the accused also pleaded that as he was given Ex.P1 cheque as security purpose. Hence the said judgment is squarely applicable to the present case facts.
[32.] Thus, the material on record adduced by the complainant categorically and conclusively established issuance of
Ex.P.1 cheque by accused to the complainant in discharge of legally enforceable debt, which was dishonoured when presented. In the absence of any grain of rebuttal evidence adduced by accused to
APNE110001372022 25C.C.No.120/2022 the contrary, this court holds that the complainant has proved the guilt of accused for the offence U/sec. 138 of the Act. Accordingly the point is decided in affirmative.
[33.] In the result, accused is found guilty for the offence punishable U/sec. 138 of Negotiable Instrument Act, and accordingly, he is convicted Under Section 255(2) of Criminal
Procedure Code.
Sd/- J.ANJAIAH
Judicial Magistrate of I Class,
Udayagiri.
[34.]Hearing on quantum of sentence:- Convict is questioned with regard to quantum of sentence that can be imposed, for which he submitted that he is having wife, children and aged mother and they are depending upon him. His father is no more. His mother is aged about 80 years and she has been suffering from aged elements, his two children are going to school. If he will be kept in judicial custody his entire family will be suffered a lot. With this submission to take a lenient view.
APNE110001372022 26C.C.No.120/2022 [35.]This court is conscious that legislation has incorporated section 138 of the Act to curb the practices of issuing cheques without any funds and to bring harmony in monetary transactions.
The nature of offence and the mode in which it is committed do not warrants the application of beneficial provisions of P.O.Act.
[36.] The Hon'ble Supreme court in a decision decided in between 'S. Suresh Kumar Vs. Jagadeeshan' reported in '2002(1) ALD (Crl) 417' held that- “it should be the look out of the trail court Magistrate that the sentence for the offence under section 138 of Negotiable Instruments Act, 1881 should be of such a nature as to give proper effect to the object of the legislation. No drawer of the cheque can be allowed to take dishonor of the cheque issued by him/her light heartedly. The very object of the enactment of the provisions like 138 of Negotiable Instruments Act, 1881 would stand defeated if the sentence is flee bite in nature. It is a different matter, if the accused is paid the amount at least during the pendency of the case.” [37.]Further, the Hon'ble Supreme court in a decision decided in between 'R. Vijayan Vs Baby and another' reported in '2012(1) S.C.C 260' held that granting of compensation is must in
APNE110001372022 27C.C.No.120/2022 cheque bounce cases to maintain uniformity in the decisions of the courts. It was held that “As the provisions of Chapter XVII of the Act strongly lean towards grant of reimbursement of the loss by way of compensation, the courts should, unless there are special circumstances, in all cases of conviction, uniformly exercise the power to levy fine upto twice the cheque amount (keeping in view the cheque amount and the simple interest thereon at 9% per annum as the reasonable quantum of loss) and direct payment of such amount as compensation. Direction to pay compensation by way of restitution in regard to the loss on account of dishonour of the cheque should be practical and realistic, which would mean not only the payment of the cheque amount but interest thereon at a reasonable rate. Uniformity and consistency in deciding similar cases by different courts, not only increase the credibility of cheque as a negotiable instrument, but also the credibility of courts of justice.” [38.] Further, It was also held by the Hon'ble Supreme court in the decision decided in between 'Somnath Sarka Vs Utpal basu mallick' reported in ' 2014 Cr.L.J. 179. 111' that the Act not contemplated grant of compensation but envisages imposition of fine not exceeding twice the amount of dishonoured cheque and out
APNE110001372022 28C.C.No.120/2022 of said fine amount, the complainant be compensated under Section 357 Cr.P.C and that unlike for other forms of crime, the punishment here (insofar as the complainant is concerned) is not a means of seeking retribution, but is more a means to ensure payment of money. The complainants interest lies primarily in recovering the money rather than seeing the drawer of the cheque in jail. The threat of jail is only a mode to ensure recovery.
[39.] Furthermore, there used to be some discussion as to whether the default sentence can be imposed for non payment of compensation. The said discussion is settled at rest and it has been held by the The Hon'ble Supreme court in a decision decided
in between 'K.A. Abbas H.S.A. vs Sabu Joseph & Anr.'
reported in '(2010) 6 SCC 230' that default sentence can be imposed for non payment of compensation.
[40.]In view of the above principles laid down by the Hon'ble
Supreme court and considering the facts and circumstances of this case, and also taking note of submissions of convict, I am of the view that this is not a fit case to take a lenient view, and further that in my view the following sentence would meet the ends of justice.
APNE110001372022 29C.C.No.120/2022 [41.] Accordingly, Accused is found guilty for the offence punishable under section 138 of N.I Act and accordingly, he is convicted under section 255(2) Cr.P.C and the convict is sentenced to suffer simple imprisonment for a period of 06 (SIX MONTHS)
and to pay a compensation double of the cheque amount i.e.,
Rs.12,00,000/- (Rupees Twelve Lakhs only) under section 357(3) of Criminal Procedure Code to the complainant in this case, in default of payment of compensation the accused shall under go to simple imprisonment for a period of 06 (SIX) months. This court explained the right of appeal to the convict. Record reveals no previous remand period of convict, accordingly there is no order as to set off of remand period Under Section 428 of Cr.P.C. Bail bonds of the convict shall stands cancelled with immediate effect.
Office is directed to prepare conviction warrant and also to provide a copy of this judgment, free of cost to the convict forthwith.
Directly typed to my dictation by stenographer. The Judgment is delivered and operative part of the same is pronounced by me in the open court, today, this the 27 th day of June, 2025, under the hand and seal of this court.
Sd/- J.ANJAIAH
Judicial Magistrate of I Class,
Udayagiri.
APNE110001372022 30C.C.No.120/2022
Appendix of Evidence
Witnesses examined
For prosecution:
P.W.1: Dirisala Bali Reddy @ Dhirisala balireddy
For defence:
D.W.1: Edama Tirupalu
Documents marked: For prosecution:
Ex.P.1 : Cheque bearing No.064570, dt.31.08.2021 for an amount of Rs.6,00,000/-.
Ex.P2 : Cheque return memo dt.13.09.2021.
Ex.P3 : Office copy of legal notice dt.28.09.2021.
Ex.P4 : Served postal acknowledgment card.
Ex.P5 : Original promissory note dated 03.02.2021 for
Rs.6,00,000/- executed by the accused in favor of the complainant.
For defence:NIL
Material objects marked: -Nil on either side-
Sd/- J.ANJAIAH
Judicial Magistrate of I Class,
Udayagiri.
APNE110001372022 31C.C.No.120/2022
CALENDAR AND JUDGMENT
IN THE COURT OF JUDICIAL MAGISTRATE OF I CLASS AT
UDAYAGIRI.
C.C.No.120/2022
Date of: Offence onComplaint Apph. ofReleased onCommencemClosure ofResult or beforeaccusedBailent of TrialTrial 16.10.202127.10.2021--09.05.202417.06.202527.06.2025
Between: Dirisala Bali Reddy @ Dhirisala Bali Reddy S/o Bala Kota Reddy, Age : 44 years, R/o Ankireddypalli village, S.R.Puram Mandal, SPSR Nellore District. . . . Complainant.
And
Edama Thirupathaiah, S/o Venkataiah, Age : 53 years, R/o Flat.No.201, 2nd floor, Bindhu Elite, Narmada Constructions, Near Narayanapuram Colony bustop, Poranki-Nidamanuru Road, Vijayawada City, Krishna District. . . . Accused.
Offence: Under Section 138 of Negotiable Instrument Act.
Plea of accused: Not guilty.
Finding : Guilty for the offence punishable Under Section 138 of Negotiable Instrument Act.
Sentence of Order :
APNE110001372022 32C.C.No.120/2022
In the Result, Accused is found guilty for the offence punishable under section 138 of N.I Act and accordingly, he is convicted under section 255(2) Cr.P.C and the convict is sentenced to suffer simple imprisonment for a period of 06 (SIX MONTHS)
and to pay a compensation double of the cheque amount i.e.,
Rs.12,00,000/- (Rupees Twelve Lakhs only) under section 357(3) of Criminal Procedure Code to the complainant in this case, in default of payment of compensation the accused shall under go to simple imprisonment for a period of 06 (SIX) months. This court explained the right of appeal to the convict. Record reveals no previous remand period of convict, accordingly there is no order as to set off of remand period Under Section 428 of Cr.P.C. Bail bonds of the convict shall stands cancelled with immediate effect.
Office is directed to prepare conviction warrant and also to provide a copy of this judgment, free of cost to the convict forthwith.
Explanation for the delay:The complaint was taken on file under section 138 of N.I Act. On 18.04.2024 accused was examined under section 251 Cr.P.C for which the accused pleaded not guilty and claimed to be tried. On 14.11.2024 PW1 filed chief affidavit and same was accepted into record and got marked Exs.P1 to P5 and he was cross examined on 27.01.2025 and complainant evidence was closed on 12.02.2025. On 19.02.2025 accused was examined under section 313 of Cr.P.C., for which the accused reported as everything as false and reported he has defence evidence. On behalf of accused, he himself examined as DW1 and no documents were marked. On 17.06.2025 defence evidence was closed. On
APNE110001372022 33C.C.No.120/2022 20.06.2025 heard arguments of the complainant and on 23.06.2025 arguments of the accused. On 27.06.2025 Judgment pronounced.
Hence the delay.
Sd/- J.ANJAIAH
Judl. Magistrate of I Class,
Udayagiri.
Substantive sentence of imprisonment is suspended till
28.07.2025 as per the orders in Crl.M.P.No.425/2025 dated
27.06.2025.
APNE110001372022 34C.C.No.120/2022
Copy To
1. To The Hon'ble Principal Senior Civil Judge, Nellore for kind perusal.
Substantive sentence of imprisonment is suspended till
23.12.2024 as per the orders in Crl.M.P.No.334/2024 dated
22.11.2024.
//True Copy//
Judicial Magistrate of I Class
Udayagiri
the accused never pleaded that the said cheque leaves are signed cheque leaves and also never pleaded the accused the signatures contains on Ex.P1 cheque is forged one.
Further General Auto sales Vs. Vijaya Lakshmi alsoDirisala
Bali Reddy, S/o Bala Kota Reddy, Age : 44 years, R/o Ankireddypalli village, S.R.Puram Mandal,
APNE110001372022 35C.C.No.120/2022
SPSR Nellore District. . . . Complainant.
And
Edama Thirupathaiah, S/o Venkataiah, Age : 53 years, R/o Flat.No.201, 2nd floor, Bindhu Elite, Narmada Constructions, Near Narayanapuram Colony bustop, Poranki-Nidamanuru Road, Vijayawada City, Krishna District.
. . . Accused.