1 Fair Judgment in C.C.843/2015
IN THE COURT OF THE II ADDL. JUNIOR CIVIL JUDGE CUM II ADDL.
JUDICIAL FIRST CLASS MAGISTRATE, KAKINADA
PRESENT:- Smt. K.V.L. HIMABINDU,
Principal Junior Civil Judge cum Judicial First Class Magistrate.
FAC of II Addl. Junior Civil Judge-cum-II Addl. Judl. Magistrate
of First Class, Kakinada.
Friday, this the 20th day of September 2019
C.C.No.843 of 2015
Between:
Ramisetti Thrimurthulu, S/o.Ramu, age 45 yrs., business, R/o.D.No.64-7-12/A6, Pratapnagar, Kakinada.… Complainant
AND Pochiraju Veera Venkata Satya Trinadha Seshagiri Rao, S/o.Apparao, age 55 yrs., employee, Training officer, Govt. ITI,
Opp: JNTU, Kakinada. ... Accused
This case coming before me for final hearing on 16.09.2019 in the presence of Sri.D.Chinnaji, Sri M.Mohan Kumar, Advocates for the complainant and of Sri.Kamuju Srinivasa Rao, Advocate for the
Accused and upon perusing the evidence and material papers on record and after having heard and stood over for consideration till this day, the court delivered the following:
: JUDGMENT :
1. This is a complaint filed by the complainant U/s. 200 Cr.P.C for the offence punishable U/s.138 of Negotiable Instruments Act.
2. The brief averments of the complainant’s case is that the accused borrowed an amount of Rs.4,00,000/- from the complainant on 27.07.2013 for the purpose of his family expenses and to discharge sundry debts and duly executed promissory note on the even date agreeing to repay the same together with interest at the rate of Rs.2/- p.c.p.m. Inspite of repeated demands, the accused postponed the same on one pretext or the other. Finally he got issued 2 Fair Judgment in C.C.843/2015 cheque bearing No.215948 dt.11.10.2015 for an amount of
Rs.3,00,000/- drawn on State Bank of India, Jagannaickpur Branch,
Kakinada towards part satisfaction of the amount borrowed by him.
Believing the accused the complainant presented the said cheque in his account in Kakinada Cooperative Town Bank Limited, Kakinada for encashment. However the said cheque got dishoroured for the reason “drawers signature differs” vide cheque return memo dt.21.10.2015.
The complainant got issued legal notice on 31.10.2015 calling upon the accused to discharge his liability under the said cheque within 15 days from the receipt of said notice. But the said notice got returned with an endorsement intimation and the accused did not choose to discharge his liability covered under the said cheque. Hence the complainant filed this case contending that the accused having fully known that there are no sufficient funds in his account, wantonly got issued the cheque to deceive this complainant. Hence committed the offences punishable under Secs.138 & 142 of Negotiable Instrument
Act and prayed to punish the accused under Sec.138 & 142 of N.I. Act and to award compensation under Sec.357 Cr.P.C.
3. After recording the sworn statement of the complainant the case was taken on file for the offence U/S.138 NI Act and was numbered as
CC 843/2015 by the III Addl. Judicial Magistrate of First Class,
Kakinada.
4. On receipt of the summons, the accused marked his appearance before the court, whereupon, copies of documents relied upon by the complainant were furnished to the accused as contemplated U/s.207 Cr.P.C.
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5. The accused was examined U/s. 251 Cr.P.C by explaining the substance of the accusation leveled against him for the offence U/s.
138 of N.I.Act for which the accused denied the said offence, pleaded not guilty and claimed to be tried.
6.During the course of trial, to establish his case against the accused, the complainant got himself examined as PW1 and two independent witnesses as P.W.2 and P.W.3 and placed reliance on
Ex.P1 to Ex.P5.
7.After closure of the complainant’s evidence, the accused was examined U/s.313 Cr.P.C by explaining the incriminating circumstances appearing against him in the evidence of PW1 to PW3 for which the accused denied the same once again and pleaded not guilty. At the request of the accused that he wants to adduce defence evidence on his behalf the matter was posted for defence evidence.
To rebut the case of the complainant the accused got examined himself as DW1 and no documentary evidence is adduced on his behalf.
8. Heard both sides. Written arguments are filed by the counsel for the accused. Perused material on record.
9. Now the point which stood up for determination is:-
Whether the complainant succeeded in bringing home the guilt of the accused for the offence U/s.138 of N.I.Act beyond all reasonable doubt?
10. Point:-
The complainant got examined himself as PW1 and filed his chief affidavit in lieu of his chief affidavit and reiterated the entire contents as in his complaint. In a nutshell it is his case that the accused obtained loan of Rs.4,00,000/- from him on 27.07.2013 and 4 Fair Judgment in C.C.843/2015 duly executed Ex.P1 promissory note. That pursuant to repeated demands that the accused issued Ex.P2 cheque for an amount of
Rs.3,00,000/- towards discharge of the part of liability covered under
Ex.P1. The said cheque on presentation with his banker got dishonoured for the reason drawers signature differs. Ex.P3 is the cheque return memo. This being so, the complainant got issued the legal notice dt.31.10.2015 calling upon the accused to discharge his liability under Ex.P2 within 15 days from the date of receipt of the said notice. But the legal notice got returned unclaimed. Ex.P4 is the office copy of the legal notice and Ex.P5 is the returned RPAD. Thus it is submitted that the accused having fully known issued Ex.P2 cheque by altering his signature and as he failed to discharge his liability inspite of having knowledge of issuance of legal notice that he is liable to be punished under Sec.138 of N.I. Act.
At this juncture I deem it pertinent to mention Judgment of Our
Hon'ble Apex Court, in Jugesh Sehgal v. Shamsher Singh Gogi
MANU/SC/1198/2009 : (2009) 14 SCC 683, wherein it noted that the following ingredients are required to be fulfilled to attract offence u/Sec.138 N.I.Act viz:..
(i) a person must have drawn a cheque on an account maintained by him in a bank for payment of a certain amount of money to another person from out of that account;
(ii) the cheque should have been issued for the discharge, in whole or in part, of any debt or other liability;
(iii) that cheque has been presented to the bank within a period of six months from the date on which it is drawn or within the period of its validity whichever is earlier;
(iv) that cheque is returned by the bank unpaid, either because of the amount of money standing to the credit of the account is insufficient to honour the cheque or that it exceeds the amount 5 Fair Judgment in C.C.843/2015 arranged to be paid from that account by an agreement made with the bank;
(v) the payee or the holder in due course of the cheque makes a demand for the payment of the said amount of money by giving a notice in writing, to the drawer of the cheque, within 15 days of the receipt of information by him from the bank regarding the return of the cheque as unpaid;
(vi) the drawer of such cheque fails to make payment of the said amount of money to the payee or the holder in due course of the cheque within 15 days of the receipt of the said notice.
Being cumulative, it is only when all the aforementioned ingredients are satisfied that the person who had drawn the cheque can be deemed to have committed an offence under Section 138 of the Act and once the ingredients are established it is not necessary that the testimony of the witness must be corroborated as it is the transaction between two persons.
11.Thus by considering the testimony of P.W.1 in light of Ex.P1 to
Ex.P5, it can be said that he satisfied the ingredients to establish the offence under Sec.138 of N.I. Act. This being so, to further corroborate his contentions he got examined the attestors of the promissory note as P.W.2 and P.W.3 who also filed their chief affidavits and reiterated with regard to execution of Ex.P1 promissory note in their presence and passing of consideration under it. In fact nothing crucial could be elicited during the cross examination of P.W.2 and
P.W.3 to discredit their testimony with regard to their presence at the time of execution of Ex.P1 promissory note and passing of consideration under it. Thus, it can be said that the complainant succeeded in establishing that there is a legally enforceable debt between both the parties as reflected under Ex.P1.
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12.This being so, it is the contention of P.W.1 that in discharge of the said legally enforceable debt that the accused issued Ex.P2 cheque. However to rebut the case of the complainant the accused got examined himself as DW1 and denied having executed any such promissory note or of having issued any such cheque as alleged. It is pertinent to note that by filing chief affidavit it is submitted by the accused that in fact he has obtained loan of Rs.1,00,000/- only from the complainant on 09.02.2013 at which time he issued three signed blank cheques and three signed empty promissory notes. By selling his house at Indrapalem in the month of November, 2013 that he has cleared the said debt in the house of the complainant on 07.12.2013 in the presence of one K.Srinivasa Rao of Godarigunta of Kakinada. A full satisfaction settlement receipt was also issued by the complainant stating that he will return the blank cheques and the promissory notes issued by him after two weeks after entering in his account books but surprisingly filed this false case.
13.Apparently except his self serving testimony, there is no cogent and reliable evidence adduced on record to show that DW1 has issued any blank promissory notes or blank cheques to the complainant with regard to any earlier transaction and that misutilizing the same that this false case is instituted. On the other hand, the contention of the accused himself that he has obtained loan of Rs.1,00,000/- from the complainant probablizes the fact that there is some monitory transaction between both the parties brushing aside any stand if at all pertaining to the accused challenging the financial capacity of the complainant. In the background of the said plea, the facts elicited from PW1 that he obtained house loan of Rs.3,00,000/- and by adding another Rs.1,00,000/- forwarded loan of Rs.4,00,000/- 7 Fair Judgment in C.C.843/2015 to the accused on the relevant date is strengthened. Though there is no documentary evidence produced by PW1 to show that he obtained any such amounts towards house loan as alleged which he forwarded to the accused herein, any such ambiguity stands brushed aside in light of the fact of the complainant examining PW2 and PW3 who testified with regard to their presence at the time of passing of consideration under Ex.P1 and their acting as attestors to the said document.
14.The most crucial aspect to be appreciated here is during the course of cross examination the accused admitted his signature on
Ex.P2 cheque though he denied his signature on Ex.P1 promissory note. In fact in his chief affidavit he admitted having issued signed blank cheques and promissory notes to the complainant which reflect his admitting his signatures on the said documents. This being so, during cross examination he denied his signature on Ex.P1 promissory note while he categorically admitted his signature on Ex.P2 cheque.
Astonishingly Ex.P2 cheque was returned by the bank for the reason “drawers signature differs”. However as discussed above, there is no ambiguity that Ex.P2 cheque is drawn from the account of the accused. There is no denial that the said cheque was issued by him to the complainant and bears his signature. Thus in these circumstances, the burden of proof undoubtedly shifts to the accused to show that under what circumstances he issued those documents or to disprove the contentions of the plaintiff with regard to legally enforceable debt existing between both the parties. Though he has taken the stand of discharging his total liability in the presence of one
K.Srinivasa Rao of Godarigunta, he did not choose to examine the said person before this court. Further though he has further submitted 8 Fair Judgment in C.C.843/2015 that a full satisfaction receipt was issued by the complainant, he did not choose to file any such document before this court. Thus except self serving testimony of the accused, there is nothing on record to brush aside the contentions of the accused. Thus any variation in the signature as contended by the bank while returning Ex.P2 cheque fades away in light of admission of the accused of his signature on it.
Further DW1 during his cross examination disclosed he is a Gazetted officer and knows the sanctity of issuing blank documents. This being so, though a petition to recall D.W.1 and for receiving document was filed which was allowed the accused did not choose to enter into the witness box and moreover filed a petition to not press the same.
Whatever may be the veracity behind the alleged documents, apparently there is no documentary evidence to show that the accused discharged his liability. Thus, in the back ground of the facts discussed above it brushes aside the contention of accused that he has issued any blank documents to the complainant towards security and on the other hand is strengthening the case of the complainant with regard to issuance of Ex.P2 cheque in discharge of legally enforceable debt covered under Ex.P1.
15. Though the legal notice sent to accused got returned un served as intimation, there is no dispute raised by the accused as to his registered address and hence, it amounts to sufficient notice as contemplated under S.27 of General Clauses Act. With this regard, the counsel for the complainant relied on the Judgment of his Lordships in case of M.Ramesh Vs. Vankadara Sunik Kumar and another reported in 2005(2) ALD Page 442 wherein it was held that “notice sent under certificate of posting would also be valid statutory notice since the section does not mandate that notice has to be sent only by 9 Fair Judgment in C.C.843/2015 registered post. The only question for consideration is whether the address mentioned on the said certificate of posting is the correct address of the petitioner or not. Once the said address is the correct address of the addressee it would be deemed to have been received by the addressee. As notice returned as UNCLAIMED also amounts to due service and notice issued through Under Certificate of posting did not return and hence the factum of due service of notice stood amply established”.
16.Ordinarily the presumption has to be rebutted by the accused- drawer during the course of trail by proving that the cheques were not issued towards the discharge of the liability. However, if the material referred to an relied upon by the complainant in the complaint and other documents accompanied to the said complaint would show that the cheques were not issued towards the discharge of the liability, then there is no difficulty in holding that the complaint is not sustainable under law. Once the cheque is accepted all the consequences and incidences of payment through cheque that emanates from the provisions of Negotiable Instruments Act would follow. Human conduct in such circumstances has to be interpreted subject to the presumption that is available under the Negotiable
Instruments Act. The person who is entitled to get money on particular date and in lieu whereof he accepts the cheque without any demur and present it for encashment, presumptions, particularly under Section 139 of the Negotiable Instruments Act will follow.
17.Because both Sections 138 and 139 require that the Court “shall presume” the liability of the drawer of the cheques for the amounts for which the cheques are drawn, it is obligatory on the
Court to raise this presumption in every case where the factual basis 10 Fair Judgment in C.C.843/2015 for the raising of the presumption had been established. It introduces an exception to the general rule as to the burden of proof in criminal cases and shifts the onus on the accused. Such a presumption is a presumption of law, as distinguished from a presumption of fact which describes provisions by which the Court “may presume” a certain state of affairs. Presumptions as rules of evidence and do not conflict with the presumption of innocence, because by the latter all that is meant is that the prosecution is obliged to prove the case against the accused beyond reasonable doubt. The obligation on the prosecution may be discharged with the help of presumptions of law or fact unless the accused adduces evidence showing the reasonable possibility of the non-existence of the presumed fact.
18.In light of the discussion made above it can be said that the complainant succeeded in establishing the guilt of the accused for the offence under Sec.138 N.I.Act and that the accused failed to rebut the same at least in preponderance of probabilities.
19.In the result, the accused is found guilty for the offence under
Sec.138 N.I. Act and is convicted under Sec.255 (2) Cr.P.C.
Typed to my dictation corrected and pronounced by me in the open court on this the 20th day of September, 2019.
Sd/- K.V.L.Hima Bindu
Prl. Junior Civil Judge-cum-Judicial
Magistrate of First Class, Kakinada.
FAC of II Addl.Junior Civil Judge-cum-II Addl. Judl. Magistrate of First Class, Kakinada.
11 Fair Judgment in C.C.843/2015
APPENDIX OF EVIDENCE
WITNESSES EXAMINED
For Prosecution:- For Defence:-
PW1: R.TrimurthuluDW1: P.V.V.S.T.S.Seshagiri PW2: T. Nageswara RaoRao. PW3: A. Durga Prasad .
EXHIBITS MARKED
For Prosecution
Ex.P1/27-07-2013 : Original pronote executed by the accused in favour of complainant.
Ex.P2/11-10-2015 : Cheque issued by the accused in favour of complainant.
Ex.P3/21.10.2015 : Cheque return memo.
Ex.P4/31.10.2015 : Office copy of the legal notice to the accused.
Ex.P5/ -- : Returned R.P. Cover.
For defence :- Nil. M.Os Marked -Nil-
Sd/- K.V.L.Hima Bindu
PJCJ CUM JFCM
FAC of II AJCJ-CUM-IIAJMFC
21. Heard the accused regarding the quantum of sentence. It is submitted by the accused that he is suffering from T.B. and aged about 60 years and suffering with old age ailments. That if he is send to imprisonment that his family consisting of old aged wife will suffer irreparable loss and injury. Having regard to the facts and circumstances of this case and the nature and gravity of offence, this court is of considerable opinion that the provisions under Sec.360
Cr.P.C. or Probation of offenders Act are not applicable to this Case.
Considering the factual situation and the mitigating circumstances, this court is of view that sentencing the accused to undergo imprisonment and to pay fine in the form of compensation would meet the ends of Justice.
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Accordingly, the accused is sentenced to undergo simple imprisonment for a period of six months and to pay compensation equivalent to the cheque amount to the complainant under Sec.357
Cr.P.C. The accused is directed to pay the said compensation amount directly to the Complainant within a period of one month. In default of payment of compensation, the accused shall undergo further simple imprisonment of six months. The accused is informed of his right to appeal and he has reported that he already engaged a Counsel of his choice.
Typed to my dictation corrected and pronounced by me in the open court on this the 20th day of September, 2019.
Sd/- K.V.L.Hima Bindu
Prl. Junior Civil Judge-cum-Judicial
Magistrate of First Class, Kakinada.
FAC of II Addl.Junior Civil Judge-cum-II Addl. Judl. Magistrate of First Class, Kakinada.
Calendar and Judgment
IN THE COURT OF THE II ADDL. JUNIOR CIVIL JUDGE CUM II ADDL.
JUDICIAL FIRST CLASS MAGISTRATE, KAKINADA
CALENDER CASE NO.843/2015
Date of offence:11.10.2015 Date of complaint:01.12.2015 Date of taken on file:1.12.2015 Date of apprehension of accused:4.7.2016 Date of commencement of trial:25.11.2016 Date of close of trial:15.7.2019 Date of sentence of order:20.9.2019 Complainant: Ramisetti Thrimurthulu, S/o.Ramu, age 45 yrs., business, R/o.D.No.64-7-12/A6, Pratapnagar, Kakinada.
Particulars of the accused:-
Pochiraju Veera Venkata Satya Trinadha Seshagiri Rao, S/o.Apparao, age 55 yrs., employee, Training officer, Govt. ITI, Opp: JNTU, Kakinada.
Nature of offenceU/Secs. 138 of Negotiable Instruments Act 13 Fair Judgment in C.C.843/2015
Finding of the courtAccused found guilty. In the result, the accused is found guilty for the offence under Sec.138
N.I. Act and is convicted under Sect.255(2) Cr.P.C.
Heard the accused regarding the quantum of sentence. It is submitted by the accused that he is suffering from T.B. and aged about 60 years and suffering with old age ailments. That if he is send to imprisonment that his family consisting of old aged wife will suffer irreparable loss and injury. Having regard to the facts and circumstances of this case and the nature and gravity of offence, this court is of considerable opinion that the provisions under Sec.360
Cr.P.C. or Probation of offenders Act are not applicable to this Case.
Considering the factual situation and the mitigating circumstances, this court is of view that sentencing the accused to undergo imprisonment and to pay fine in the form of compensation would meet the ends of Justice.
Accordingly, the accused is sentenced to undergo simple imprisonment for a period of six months and to pay compensation equivalent to the cheque amount to the complainant under Sec.357 Cr.P.C. The accused is directed to pay the said compensation amount directly to the Complainant within a period of one month. In default of payment of compensation, the accused shall undergo further simple imprisonment of six months. The accused is informed of his right to appeal and he has reported that he already engaged a Counsel of his choice.
Sd/- K.V.L.Hima Bindu
Prl. Junior Civil Judge-cum-Judicial
Magistrate of First Class, Kakinada.
FAC of II Addl.Junior Civil Judge-cum-II Addl. Judl. Magistrate of First Class, Kakinada.