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IN THE COURT OF THE VI ADDL. JUNIOR CIVIL JUDGE : GUNTUR.
Present: Smt. K. SWAPNA RANI,
VI Addl. Junior Civil Judge, Guntur
Wednesday, this the 19 th day of December, 2018.
CC 657/2015
Between:
Kareti Rambabau, S/o Late Sambasiva Rao, Age 33 years,
Real Estate business, R/o Yadavapalem, Pedakakani Village and Mandal. ...C OMPLAINANT .
And
Gade Basava Punna Reddy, S/o China Kotireddy, Age 40 years,
Real Estate Business, R/o Kaza Village, Mangalagiri Mandal. ...A CCUSED.
This case is coming on 19-12-2018 before me for final hearing in the presence of Sri
Ch.Radha Krishna Murthy, Advocate for the complainant and of Sri D. Srinivasa Rao, Advocate for the
Accused and having stood over for consideration till this day, this court made the following: -
J U D G M E N T
1.This is a case of dishonour of cheque punishable U/Sec.138 of Negotiable Instruments Act, 1881.
2.The brief facts of the case are that on 05-02-2012, the accused Gade Basava Punna Reddy borrowed an amount of Rs.4,00,000/- from the complainant for purpose of his family expenses, agreeing to repay the same with interest at the rate of 24% p.a either to the complainant or his order on demand. Inspite of repeated demands made by the complainant the accused issued cheque bearing
No.501860 dated 22-03-2013 for a sum of Rs.4,80,000/- drawn from Andhra Bank, Kaza branch,
Guntur District towards full and final settlement of the amount due. The complainant presented the said cheque for collection at State Bank of India, Pedakakani Branch, Guntur District. But the said cheque was dishonoured for the reason “FUNDS INSUFFICIENT” and the same was intimated through memo
dated 27-03-2013. Again, the complainant presented said cheque for collection at State Bank of India,
Pedakakani Branch, Guntur District. But the said cheque was again dishonoured for the reason ‘Funds
Insufficient’ and the same was intimated through memo dated 15-06-2013. Under the above circumstances, on 06-07-2013 the complainant got issued legal notice to the accused demanding him to pay the cheque amount within 15 days from the date of receipt of the notice. The accused who 2 received the said notice instead of making payment kept quite. It is alleged that the accused intentionally issued the above said cheque with a dishonest intention and is there by liable to be punished U/s.138 of N.I.Act.
3.On receipt of complaint and after the examination of the complainant U/Sec.251 Cr.P.C., cognizance of the offence U/Sec.138 of NI Act, 1881 was taken and process issued against the accused.
The substance of accusation U/Sec.138 of NI Act was explained to the accused to which he pleaded not guilty and claimed for trial.
4. At the trial, the complianant examined himself as PW1 and the scribe of promissory note as
PW.2 and got marked Exs.P1 to P6.
5.At the closure of the evidence of the complainant, the statements of the accused have been recorded U/Sec.313 of the Cr.P.C., with reference to the incriminating evidence appearing against him.
The plea of the accused is of total denial. In support of his plea, the accused has examined himself as
DW1 and examined his friend as D.W2 and got marked Exs.D1 and D2.
6.Heard the arguments of learned counsel for complainant, Sri Ch. Radha Krishna Murthy and learned counsel for the accused, Sri D. Srinivasa Rao.
7.POINTS FOR DETERMINATION
1. Whether the accused had issued cheque bearing No. 501860 dt.22-03-2013,for
Rs.4,80,000/- drawn on Andhra Bank, Khaja Branch, Guntur in favour of the
complainant towards payment of legally enforceable debt and the same was dishonoured on presentation for encashment, due to insufficient funds?
2. Whether the accused failed to pay the money as demanded within 15 days of receipt of
notice and thereby has committed offence punishable U/Sec.138 of Negotiable
Instruments Act, 1881?
8. To determine Point No.1, the first and foremost consideration is that whether the cheque has been issued by the accused towards payment of legally enforceable debt. PW1, the complainant Kareti
Rambabu submitted his evidence supporting the facts narrated in his complaint. He stated that the 3 accused issued cheque bearing No. 501860 for Rs.4,80,000/- on 22-03-2013 towards full and final payment amount due under the promissory note dt.05-02-2012. PW1 exhibited the said cheque as
Ex.P2 and the promissory note as Ex.P1.
8(a).In the cross examination, PW1 stated that real estate business is his only source of income and he is a facilitator on commission basis and earns about Rs.2 to 2.5 lakhs per annum. He expressed his ignorance that amount higher than Rs.20,000/- is to be lent by way of account payee cheque or that under AP Money Lenders Act., without licence a person cannot do money lending business. He further stated that he is not aware of the reply notice under Ex.P4 issued by accused. He admitted that he did not specifically state either in his complaint, legal notice or in his chief affidavit that he has advanced the amount in the presence of attestors and scribe of Ex.P1 promissory note to the accused. He also stated that he is not maintaining account book in respect of his earnings to establish that he secured
Rs.4,00,000/- from his profession. He further stated in his cross examination that his mother is having financial transaction with one Kaasa Veeranjaneyulu. He admitted that there is difference in the writing and the signature of accused on the cheque and that Ex.P1 promissory note contain the signature of accused in Telugu language and the signature on Ex.P2 cheque is in English language and that there is difference between the signature of accused on Ex.P5 acknowledgment and Ex.P1 promissory note and
Ex.P2 cheque.
9.The scribe of Ex.P1 promissory note is examined as PW2. In the cross examination, he stated that he scribed the promissory note on the request of complainant. He further admitted that there is a wording on promissory note that “Raasi itchina promissory note” which conveys meaning that the borrower has scribed the promissory note. But he denied the suggestion that it is not he who scribed the
Ex.P1 promissory note.
10.Denying the execution of Ex.P1 promissory note and issuance of cheque under Ex.P2, the accused who examined himself as DW1 stated in his cross examination that he does not know the name and address and other details of the complainant, but he stated that he knows one Kasa Veerajaneyulu.
He stated his ignorance that the said Kasa Veeranjaneyulu filed suit against mother of complaianant and 4 her property was put to auction in E.P.313/2015 on the file of Hon’ble I ASCJ, Guntur. He admitted that he received Ex.P4 notice and he got issued reply notice under Ex.D1 to the complainant.
11.DW2 G.Srinivasa Reddy who is friend of accused stated that on 07.08.2010 the accused borrowed an amount of Rs.1,00,000/- from one Kasa Veeranjaneyulu and at that time, himself and one
Jonnadula Krishna were present and at that time 3 cheques, 3 promissory notes and 100/- stamp paper were obtained by Kasa Veeranjaneyulu from accused. He further stated that after six months accused repaid the amount borrowed from Kasa Veeranjaneyulu along with interest and when accused demanded for return of promissory notes and cheques, Kasa Veeranjaneyulu stated that they were misplaced and he will return them whenever he finds.
11(a).In the cross examination, DW2 admitted that there is no documentary proof to establish that he was present on that day when accused borrowed money from one Kasa Veeranjaneyulu and he has not signed any of the promissory note as attestor. He also stated that he cannot say the date and time of the above mentioned transaction.
12.In order to discharge his initial burden, complainant produced Exs.P1 to P6 i.e, promissory note, cheque, cheque return memo, statuatory notice, postal receipt and acknowledgment etc., and by examining himself, and scribe as PW1 and PW2 respectively, complainant had initially discharged his burden. Whereas, the accused during cross examination stated that the alleged cheque and promissory note were given to one Kasa Veeranjaneyulu with whom a money transaction took place. Furher the accused examined DW2 in support of his contention that accused lent money from one Kasa
Veeranjaneylu and at the time of transaction empty cheques, pronotes and stamp paper were taken by one Kasa Veeranjaneyulu and he was present at the time of such transaction. In the cross examination,
DW2 stated that there is no documentary proof to establish that he was present on that day and he also did not sign on any of the pronotes as attestor. This being the evidence of accused and DW2, and when the evidence of PW1 is perused, nothing material is elicited from the cross examination of both PW1 and PW2 by the accused and their evidence remained unshaken.
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13.The main defence of accused is that the empty cheques of promissory notes issued by him to one Kasa Veeranjaneyulu are misused by complainant in collusion with Kaasa Veeranjaneyulu. On perusal of complaint, it is filed on 14.08.2013. The alleged reply notice issued by accused is dated 21.08.2013 i.e, seven days after filing of the complaint, reply notice came to be issued by the accused.
The allegation of accused that for non returning of empty promissory notes and cheques he issued notice to the said Kasa Veeranjaneyulu on 24.07.2013 is also not proved as no such notice is produced.
Even otherwise, the very allegation that the accused had issued cheque in favour of Kasa
Veeranjaneyulu itself seems vague, since on one hand the accused contends that he had issued promissory notes and cheques to Kasa Veeranjaneyulu and one such cheque is misused by the Kasa
Veeranjaneyulu through complainant, and on the other hand accused cross examined PW1 on the point that said Kasa Veeranjaneyulu had filed a suit against the mother of complainant for recovery of money basing on promissory note and also filed execution petition upon decree thereof. Had really the said
Veeranjaneyulu colluded with complainant and filed the present complaint against accused, he would be in good terms with complainant and the question of filing suit against complainant’s mother will not arise if at all there is collusion between complainant and Kasa Veeranjaneyulu.
14.Learned counsel for complainant contended that complainant has proved borrowal of amount by accused by examining complainant and the scribe of promissory note and that the cheque was returned and even after issuance of statutory notice under Ex.P4, accused gave a vague reply notice and has failed to pay the cheque amount. Thus the complainant proved his case beyond reasonable doubt.
15.On the other hand, learned counsel for accused submitted that one Kasa Veeranjaneyulu had misused the cheque by filing complaint through the complaint Kareti Rambabu and that accused has proved his case by examining accused and one G.Srinivasa Reddy in whose presence the alleged borrowal of amount took place between accused and Kasa Veeranjaneyulu and also by exhibiting two documents i.e, Ex.D1reply notice and its postal acknowledgment.
15(a).In support of his contention learned counsel for accused relied on certain decisions:- 6
(a).Vallabhaneni Srinivasa Rao Vs. Mangalapudi Venkateswarlu and another, 2015 (2) ALD (Crl.) 510. But it is a case wherein no document was produced before the court to show receipt of money by the accused. Whereas, it is not the case of the accused herein that no document is produced by the complainant to show receipt of money by accused.
(b).K.Venkata Krishna Prasad Vs. Peram Sai Swarupa and another, 2017 (1)
ALT 259. In this case the financial capacity of complainant was not proved and legally enforceable debt was not shown. But in the present case complainant has stated his financial capacity and legally enforceable debt is also proved by producing Ex.P1 promissory note and
Ex.P2 cheque.
(c).N.Narasamma Vs. Chinna Mukkiranna and another, 2017 (1) ALT (Crl.) 221 (A.P.). In this case no money transaction was shown between accused and complainant and no piece of paper was executed. But in the instant case there is promissory note evidencing money transaction.
(d).R.Chennakesava Rao, Hyderabad Vs. P.Laxmi Narasaiah, Hyderabad, 2017 (2) ALT (Crl.) 279 (A.P.). In this case, complainant admitted that he has no proof to show that the accused borrowed amount but stated that he is an income tax assessee, and failed to produce income tax returns, which is not the case herein.
16.Under the above circumstances, it is concluded that the accused failed to establish that Ex.P1 promissory note and Ex.P2 cheque are not executed by him in favour of complainant. Furthermore the suggestion of accused that signature of the accused on Exs.P1 and P2 and Ex.P5 acknowledgement differ is merit less. Hence the presumptions U/sec.139 and 118 of Negotiable Instruments Act 1881 are raised in favour of the complainant that the accused had issued the Ex-P2 cheque for discharge of the debt payable by him under Ex-P1 promissory note. The accused has to rebut the presumptions. The accused has to have an explanation and has to prove that the explanation is true. In this regard, the accused vaguely deposed that the complainant had obtained promissory note and unfilled cheque from one Kasa Veeranjaneyulu to whom they were given during previous transaction towards security and that the complainant had misused the cheque and promissory note under Exs.P1 and P2, respectively.
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Strangely, the accused did not take any steps for return of pronote and cheque from the said Kasa
Veeranjaneyulu who is alleged to have wrongfully obtained empty cheques, pronotes and stamp paper, except issuing legal notice on 24.07.2013 which is also not produced.
17.When the evidence of P.W.1 satisfies the consciousness of this Court in regard to the execution of Ex-P1 pronote, there is no impediment in law for this Court to come to `the conclusion that Ex.P1 pronote has been executed by the accused. Hence the presumption U/s 114 is against him. In the light of an overall conspectus of the whole case, this Court holds that Ex.P1 pronote has been executed by the accused.
18. From the above discussion it is clear that the accused failed to prove that Ex.P2 is a cheque which was issued to one Kasa Veeranjaneyulu. Further, the accused neither disproved the promissory note under Ex-P1 nor proved the discharge of debt under it. It leads to the conclusion that the complainant has satisfactorily proved that on 22-03-2013 i.e. the date put on the cheque, there was a legally enforceable debt owed by the accused to the complainant under Ex-P1 promissory note dated 05-02-2012. Thus, it is proved that the accused had issued cheque bearing No.501860 dt.22-03-2013 for Rs.4,80,000/- drawn on Andhra Bank, Kaza Branch, Guntur, in favour of complainant for full and final payment of legally enforceable debt. The explanation of accused that one Kasa Veeranjaneylu wrongfully possessed empty cheques, pronotes and stamp paper cannot be considered in view of failure on the part of accused to prove such contention with cogent and convincing evidence.
19.The next aspect that falls for consideration under point No.1 is dishonour of the cheque for insufficient funds.
To establish the dishonour of the cheque, the complainant has to prove the following components:
1) Drawing of the cheque;
2) Presenting of the cheque to the bank;
3) Returning the cheque unpaid by the drawee bank;
4) Giving notice in writing to the drawer of the cheque demanding payment of the cheque amount;
5) Failure of the drawer to make payment within 15 days of the receipt of the notice; 8
20.In the light of the above, it has to be examined whether the complainant established all the five components.
1) Drawing of the Cheque:
The complainant alleged in his complaint and reiterated while giving the evidence that the accused had issued Ex.P.2 cheque on 22-03-2013 to him for an amount of Rs.4,80,000/- towards discharge of debt under Ex.P.1 promissory note dt.05-02-2012. As discussed above, it is established that the cheque under Ex.P2 was drawn on 22-03-2013.
2) Presentation of cheque to the bank:
This aspect has been proved not only from the oral evidence of PW.1 complainant, but as well from the very stamps put on front and back of Ex.P.2 cheque reflecting the presentation of the cheque on 08.04.2015.
3) Returning the cheque unpaid by the drawee bank:
The third aspect of returning the cheque is also been proved not only from the oral evidence of
PW.1 but as well from the cheque return memo under Ex.P.3 dt.15-06-2013 that it has been returned unpaid by the drawee bank for the reason "FUNDS INSUFFICIENT".
4) Giving notice in writing to the drawer of the cheque demanding payment of the cheque amount:
The fourth aspect relates to issuance of statutory notice, the issuance of which is mandatory
U/sec. 138 (b), within 30 days of receipt of the cheque return memo. The complainant proved that such notice is got issued vide Ex-P4 Notice on 06.07.2013.
5) Failure of the drawer to make payment within 15 days of the receipt of the notice:
With regard to the fifth aspect that the accused being the drawer of the Ex.P.2 cheque has not made the payment within 15 days of receipt of notice as required U/sec. 138 (c) of Negotiable
Instruments Act, the accused admits that he received such notice under Ex.P5.
21.The aspect of service of notice under Ex-P5 being proved thus, it is to be examined whether the accused paid the amount covered under Ex-P2. As stated above, the complainant deposed that the accused had not paid the cheque amount. This is not denied by the accused. Therefore, it is also proved 9 that the Ex-P2 cheque is dishonoured on presentation for encashment for the reason the FUNDS
INSUFFICIENT and the accused failed to make payment.
22.From the above discussion it is concluded that the complainant has established the fact that there was existence of debt between himself and the accused and the disputed cheque was issued by the accused in his favour towards discharge of the said debt pursuant to demand made by him.
The cheque was dishonoured bounced back unpaid for the reason 'Funds Insufficient' and on presentation of the same by the complainant and despite of issuance of demand notice with regard to the fact of dishonour of the cheque, the accused had not complied with demand. Hence he maintained the complaint in time. Thus, the complainant has proved all the essential ingredients of
Section.138 of Negotiable Instruments Act to bring home the guilt of the accused under
Section.138 of Negotiable Instruments Act.
23.Therefore, in view of the above discussions and reasons, it is held that the presumptions arising in favour of the complainant U/s. 118 & 139 of the Act have not been rebutted by the accused by preponderance of probabilities. Resultantly, this court finds the accused
G. Basava Punna Reddy guilty of the offence punishable u/s 138 NI Act and hence, he stands convicted U/Sec.255(2) of the code of Criminal Procedure Code.
Typed to my dictation, by the stenographer, corrected and pronounced by me in open court on this the 19 th day of December, 2018.
Sd/K.Swapna Rani, VI Addl. Junior Civil Judge,
G UNTUR .
24.Heard the accused on point of sentence. Accused stated that he has not committed the offence and added that he has wife and children dependent on him and pleaded for mercy.
25.Having regard to the nature of the offence that has been proved against the accused I am of the view that the accused despite having opportunity to pay up and thus end the matter amicably, had remained obdurately inert, and his release on probation of good conduct under 10 probation of offenders Act, 1958 seems most inappropriate. The time, money and effort expended by the complainant in continuing with this proceeding must not be lost sight of.
Thus the accused, Gade Basava Punna Reddy is sentenced to undergo three months simple imprisonment for the offence punishable U/s.138 of Negotiable Instruments Act.
26.Further, the accused by not discharging the liability i.e, by not paying the amount mentioned in Ex.P2 cheque to the complainant which he was entitled to receive, made him to suffer. As such, in addition to the sentence of imprisonment passed against the accused as afore said, it is appropriate to award compensation to the complainant to a tune of Rs.4,80,000/- i.e, the Ex.P2 cheque amount herein.
27.IN THE RESULT, the accused namely Gade Basava Punna Reddy is convicted U/s.255 (2) Cr.P.C. and sentenced to suffer simple imprisonment for a period of three months for the offence punishable U/s.138 of Negotiable Instruments Act. The quantum of compensation is determined at Rs.4,80,000/- i.e, amount covered under the cheque (Ex.P2), on hearing the accused. The accused is also directed to pay the compensation of Rs.4,80,000/- to the complainant U/s.357 (3) of Cr.P.C. within three months from this date, in default, to suffer simple imprisonment for three months. Further, the accused is informed about his right of appeal before Hon’ble Sessions Court and also informed about his right to get free legal aid through Hon’ble Chairman, District Legal Services Authoruity, Guntur, if he has no means.
Typed to my dictation, by the stenographer, corrected and pronounced by me in open court on this the 19 th day of December, 2018.
Sd/K.Swapna Rani, VI Addl. Junior Civil Judge,
G UNTUR .
//True Copy//
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CALENDAR & JUDGMENT
IN THE COURT OF THE VI ADDL. JUNIOR CIVIL JUDGE, GUNTUR.
CALENDAR CASE N O .657/2015
1. DATEOF OFFENCE: 15-06-2013
2. DATEOF COMPLAINTORREPORT: 14-08-2013
3. Date of apprehension of the accused: ---
4. Date of release on bail: ---
5. DATEOFCOMMENCEMENTOFTRIAL: 15-09-2016
6. DATEOFCLOSEOFTRIAL: 15-05-2018
7. DATEOF SENTENCEOR ORDER: 19-12-2018
COMPLAINANT: Kareti Rambabau, S/o Late Sambasiva Rao, Age 33 years,
Real Estate business, R/o Yadavapalem, Pedakakani Village and Mandal.
ACCUSED: Gade Basava Punna Reddy, S/o China Kotireddy, Age 40 years,
Real Estate Business, R/o Kaza Village, Mangalagiri Mandal.
Offence : Dishonour of Cheque.
Section of Law : U/Sec.138 of Negotiable Instruments Act.
Finding of Court : Accused found guilty.
Sentence/ Order : IN THE RESULT, THEACCUSEDNAMELY GADE BASAVA PUNNA REDDYISCONVICTED U/S.255 (2) CR.P.C. ANDSENTENCEDTOSUFFERSIMPLEIMPRISONMENT FORAPERIODOFTHREEMONTHSFORTHEOFFENCEPUNISHABLE U/S.138 OF NEGOTIABLE INSTRUMENTS ACT. THEQUANTUMOFCOMPENSATIONISDETERMINEDAT RS.4,80,000/- I.E, AMOUNTCOVEREDUNDERTHECHEQUE (EX.P2), ONHEARINGTHEACCUSED. THEACCUSEDIS ALSODIRECTEDTOPAYTHECOMPENSATIONOF RS.4,80,000/- TOTHECOMPLAINANT U/S.357 (3) OF CR.P.C. WITHINTHREEMONTHSFROMTHISDATE, INDEFAULT, TOSUFFERSIMPLE
IMPRISONMENTFORTHREEMONTHS.
Explanation for delay:-
On 11-08-2016, the accused was examined U/sec. 251 Cr.P.C for the offence U/sec. 138 of N.I Act. On 15-09-2016, P.W1 was examined and Exs.P1 to P6 were marked. On 09-08-2017, P.W.2 was examined and no documents are marked. On 19-09-2017, the complainant evidence is closed. On 03- 10-2017, the accused was examined U/sec. 313 Cr.P.C. On 01-02-2018, D.W1 was examined and Exs.D1 and D2 are marked. On 15-05-2018, D.W2 was examined and no documents are marked and the defence evidence is closed. On 19-12-2018, heard both sides and Judgment was pronounced. Hence, the delay.
Sd/K.Swapna Rani, VI Addl. Junior Civil Judge,
G UNTUR .
//T RUE C OPY //