1 Crl.A.No.94 of 2025 dated 05.05.2026 II ADJ cum I MSJ cum II Spl.Sessions to Atrocities against Women cum Family Court Medchal-Malkajgiri District at Kushaiguda
IN THE COURT OF II ADDL. DISTRICT AND SESSIONS JUDGE-
CUM- I ADDL. METROPOLITAN SESSIONS JUDGE-CUM-II SPL.
SESSIONS JUDGE FOR FAST TRACKING THE CASES RELATING
TO THE ATROCITIES AGAINST WOMEN-CUM-FAMILY COURT,
MEDCHAL-MALKAJGIRI DISTRICT AT KUSHAIGUDA.
Tuesday, this the 05th day of May, 2026
PRESENT: Ms.N.Amaravathi, II Addl. District and Sessions Judge- cum-I Addl. Metropolitan Sessions
Judge-cum-II Spl. Sessions Judge
for Fast Tracking the cases relating to Atrocities against Women-cum- Family Court, Medchal-Malkajgiri District, at Kushaiguda.
Crl.Apl.No.94/2025
Between:
Matta Thomas Alva Edison S/o.Matta Isaac, Aged : 67 years, Occ: Business, R/o.Plot No.137, H.No.11-15-116/3, Road No.4, Doctors Colony,Near White House, Kothapet,
Saroornagar Mandal, R.R.District ...Appellant/Accused
AND
1.V.V.Muthyam S/o.Late V.Narayana Aged about : 66 years, Occ : Business, R/o.Flat No.302, Pranathi Enclave, Road No.2, Prashanth Nagar, Medipally Mandal,Medchal-Malkajgiri District
2.State, Rep. by its Public Prosecutor ...Respondent/Complainant
AN APPEAL IS FILED AGAINST THE JUDGMENT OF CONVICTION
AND SENTENCE VIDE JUDGMENT DATED: 28.10.2025 DELIVERED
BY THE LEARNED PRINCIPAL JUNIOR CIVIL JUDGE-CUM-IV ADDL.
JUDICIAL MAGISTRATE OF FIRST CLASS, MEDCHAL-MALKAJGIRI
DISTRICT, UPPAL AT L.B.NAGAR IN STC (NI) No.752 OF 2022
2 Crl.A.No.94 of 2025 dated 05.05.2026 II ADJ cum I MSJ cum II Spl.Sessions to Atrocities against Women cum Family Court Medchal-Malkajgiri District at Kushaiguda
STC (NI) No.752 OF 2022
Between: V.V.Muthyam S/o.Late V.Narayana Aged about : 66 years, Occ : Business, R/o.Flat No.302, Pranathi Enclave, Road No.2, Prashanth Nagar, Medipally Mandal,Medchal-Malkajgiri District …Complainant
AND Matta Thomas Alva Edison S/o.Matta Isaac, Aged : 67 years, Occ: Business, R/o.Plot No.137, H.No.11-15-116/3, Road No.4, Doctors Colony,Near White House, Kothapet,
Saroornagar Mandal, R.R.District...Accused
This appeal come up for final hearing on 28.04.2026 in presence of Sri Y.Bala Subrahmanyam, Learned Counsel for the Appellant; and Sri Devender Reddy, Learned counsel for the Respondent; the matter having stood over the matter for consideration, this Court passed the following:
:: J U D G M E N T ::
1.The appellant herein is the accused whereas the respondent herein is the complainant in the STC (NI). The present appeal has preferred against the Judgment, dated: 28.10.2025 in STC (NI) No.752 of 2022 delivered by the learned Prl. Junior Civil Judge-cum-IV
Additional Judicial Magistrate of First Class, Medchal-Malkajgiri District,
Uppal at L.B.Nagar. For the sake of convenience the parties shall be referred to as arrayed in the STC (NI).
3 Crl.A.No.94 of 2025 dated 05.05.2026 II ADJ cum I MSJ cum II Spl.Sessions to Atrocities against Women cum Family Court Medchal-Malkajgiri District at Kushaiguda
2. The averments of the complaint in brief are as follows :
The complainant and the accused are acquainted with each other for the long time, out of such acquaintance, the accused approached the complainant in 2nd week of December, 2019 and requested to arrange hand loan amount of Rs.30,00,000/- to meet his personal and business necessities. Then, the complainant arranged the same and paid an amount of Rs.30,00,000/- in cash to the accused on 15.12.2019 at his house. At that time, the accused executed three demand promissory notes dated 15.12.2019 for Rs.10,00,000/- each infavour of the complainant in presence of the witnesses and the accused promised to repay the same on demand with interest @12% per annum.
ii.Thereafter, when the complainant requested and demanded the accused for repayment of the said amount, then the accused used to avoid the same on one pretext or the other. Atlast, the accused voluntarily issued three cheques bearing No.013530, dated 25.06.2022 for sum of Rs.10,00,000/-, another cheque bearing No.013531, dated 25.06.2022 for a sum of Rs.10,00,000/- and another cheque bearing
No.0001604, dated 02.08.2022 for a sum of Rs.6,00,000/- towards discharge of part payment of the said loan amount. When the complainant presented the same in the bank account on 03.08.2022, 4 Crl.A.No.94 of 2025 dated 05.05.2026 II ADJ cum I MSJ cum II Spl.Sessions to Atrocities against Women cum Family Court Medchal-Malkajgiri District at Kushaiguda then the same was returned with an endorsement as “funds insufficient” in cheque return memos, dated 04.08.2022. Them, the complainant got issued Legal Notice, dated 16.08.2022 to the accused through RPAD and the same was received by the accused on 17.08.2022, he got issued reply notice dated 01.09.2022, with all false and flimsy allegations and failed to repay the cheque amount and thereby the accused is liable to be punished U/s. 138 of Negotiable
Instruments Act, 1881.
3.The Trial Court took cognizance for the Offence under Section 138 of the Negotiable Instruments Act against the accused. The accused was examined U/s.251 Cr.P.C., by the learned Prl. Junior Civil
Judge-cum-IV Additional Judicial Magistrate of First Class, Medchal-
Malkajgiri District, Uppal at L.B.Nagar, for which the accused pleaded not guilty and claimed to be tried.
4.Before the Trial Court, the complainant, himself examined as
PW1 and the documents marked Ex.P1 to P13. The complainant examined one D.Uma Shankar as PW2 as supporting witness. None were examined on behalf of the accused and no documents were marked on his behalf.
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5.The documents of the complainant are that :
Ex.P1 :Demand promissory note for Rs.10,00,000/- dated 15.12.2019.
Ex.P2 :Demand promissory note for Rs.10,00,000/- dated 15.12.2019.
Ex.P3 :Demand promissory note for Rs.10,00,000/- dated 15.12.2019.
Ex.P4 :Original cheque no.013530 for Rs.10,00,000/-, dated 27.06.2022.
Ex.P5 :Original cheque no.013531 for Rs.10,00,000/-, dated 27.06.2022
Ex.P6 :Original cheque no.001604 for Rs.6,00,000/-, dated 02.08.2022.
Ex.P7 :Cheque return memo, dated 04.08.2022
Ex.P8 :Cheque return memo, dated 04.08.2022
Ex.P9 :Cheque return memo, dated 04.08.2022
Ex.P10 :Office copy of legal notice dated 16.08.2022.
Ex.P11 :Original postal receipt, dated 16.08.2022.
Ex.P12 :Original postal acknowledgment card, dated 17.08.2022.
Ex.P13 :Reply notice dated 01.09.2022
7.After conclusion of the Trial and after examining the accused under section 313 Cr.P.C and on hearing both sides, the Trial court convicted the accused for the offence under Section 138 of the
Negotiable Instruments Act by sentencing him to suffer simple 6 Crl.A.No.94 of 2025 dated 05.05.2026 II ADJ cum I MSJ cum II Spl.Sessions to Atrocities against Women cum Family Court Medchal-Malkajgiri District at Kushaiguda imprisonment for a period of six months and also to pay an amount of
Rs.30,00,000/- (Rupees Thirty Lakhs only) to the complainant towards fine amount. On realization of fine amount, an amount of
Rs.29,90,000/- (Rupees twenty nine lakhs ninety thousand only) shall be paid to the complainant as compensation under Section 357(3)
Cr.PC within six months from the date of judgment, in default, the accused shall suffer simple imprisonment for a period of three months.
The remaining fine amount of Rs.10,000/- (Rupees Ten thousand only) shall be remitted to the State towards prosecution expenses.
7.Heard the arguments of the learned counsel for the appellant/accused and learned counsel for the respondent/ complainant.
8.The learned counsel for the appellant/accused by reiterating the grounds of the appeal mentioned in the appeal and argued that:
1.The lower court failed to consider that there is no legally enforceable debt to be paid by the accused to the complainant
2.The lower court passed the judgment on presumptions and assumptions, failed to appreciate the truth elicited in the cross examination and passed the judgment as per its whims and fancies
3.The lower court failed to consider that the evidence of PW1 7 Crl.A.No.94 of 2025 dated 05.05.2026 II ADJ cum I MSJ cum II Spl.Sessions to Atrocities against Women cum Family Court Medchal-Malkajgiri District at Kushaiguda is inherently self contradictory, inconsistent and untrustworthy
4.The lower court failed to appreciate that the complaint averments are not supported by any cogent evidence
5.The lower court ought to have seen that the complainant failed to prove the guilt of the accused beyond the reasonable doubt
6.The lower court erred in assessing the financial and lending capacity of complainant to lent the alleged amount to the accused
7.The lower court failed to consider that the respondent/ complainant is a habitual money lender without having license
8.The lower court erred in considering the facts that the complainant has failed to prove his financial capacity
9.The lower court failed to apply its judicial mind while passing the judgment and relied on the words of complainant instead of appreciating the facts and elicited truth in the cross examination
10.The lower court erroneously imposed the fine of
Rs.30,00,000/- contrary to law and insisted to pay Rs.10,000/- as fine to State towards prosecution expenses on the same day for allowing suspension application 8 Crl.A.No.94 of 2025 dated 05.05.2026 II ADJ cum I MSJ cum II Spl.Sessions to Atrocities against Women cum Family Court Medchal-Malkajgiri District at Kushaiguda
11.The lower court failed to appreciate the contradictions of the witness in deposing several aspects
12.The trial court passed a mechanical order without considering the material available on record in proper perspective but decided one sided.
13.The lower court failed to appreciate the probable defense raised by the accused through cross examination of PW1 regarding consideration of cheque in question, financial capacity of complainant etc., in appreciating the documents marked
14.The lower court failed to observe various inconsistencies and infirmities brought by the accused through cross examination of PW1 and PW2.
15.The lower court failed to consider the reply notice given by the appellant/accused and the facts of the same were admitted by the respondent/complainant
16.The lower court erred in deciding the matter that the complainant failed to prove his averments but opined that the accused is liable to be punished.
9.No additional documents were marked on behalf of both sides and both parties not adduced any further evidence.
9 Crl.A.No.94 of 2025 dated 05.05.2026 II ADJ cum I MSJ cum II Spl.Sessions to Atrocities against Women cum Family Court Medchal-Malkajgiri District at Kushaiguda
10.Heard both sides and perused the material on record.
11.Now the points that arise for consideration in this appeal are:
1. Whether the complainant could establish the existence of legally enforceable debt under Ex.P4 to P6/Cheques bearing No.013530, dated 27.06.2022
for sum of Rs.10,00,000/-, Cheque bearing
No.013531, dated 27.06.2022 for sum of
Rs.10,00,000/- and cheque bearing No.001604,
dated 02.08.2022 for sum of Rs.6,00,000/-?
2. Whether the conviction and sentence passed by the trial court in STC NI No.752 of 2022 is legally and factually sustainable or required any interference?
3. To what relief?
12. POINT No.1:According to PW1, he himself and the accused are acquainted with each other for the long time and out of such acquaintance, the accused approached him in the 2nd week of
December, 2019 and requested to arrange hand loan amount of
Rs.30,00,000/- to meet his personal and business necessities. Then, he arranged the same and paid an amount of Rs.30,00,000/- in cash to the accused on 15.12.2019 at his house. At that time, the accused executed three demand promissory notes, dated 15.12.2019 for a sum of Rs.10,00,000/- each in his favour, in presence of the witnesses and the accused promised to repay the same on demand with interest @12% per annum, which is supported by the witness PW2.
10 Crl.A.No.94 of 2025 dated 05.05.2026 II ADJ cum I MSJ cum II Spl.Sessions to Atrocities against Women cum Family Court Medchal-Malkajgiri District at Kushaiguda
13.In cross examination though the accused admitted the execution of promissory notes and cheques executed and issued by the accused in the year 2012, as the counsel for accused gave suggestion to PW1 in cross examination. Thatmeans, the accused admitted the promissory notes and cheques obtained by the complainant/PW1 in the year 2012, towards security, when the complainant/PW1 gave amount to the accused. The trial court concluded that, when once the execution of cheque is admitted, then, Section 139 of the Act, mandates a presumption that, the cheque for the discharge of any debt or other liability. But PW1 categorically admitted in his cross examination that the content of the reply notices are true.
14.Although, Section 139 of the Act is a rebuttable presumption and the onus is on the accused to raise the probable defence. The standard of proof for rebutting the presumption is that, the preponderance of probabilities.
Section 139 of Negotiable Instruments Act , reads –
Presumption in favour of holder:- It shall be presumed, unless the contrary is proved, that the holder of a cheque received the cheque of the nature referred to in Section 138 for the discharge, in whole or in part, or any debt or other liability.
11 Crl.A.No.94 of 2025 dated 05.05.2026 II ADJ cum I MSJ cum II Spl.Sessions to Atrocities against Women cum Family Court Medchal-Malkajgiri District at Kushaiguda
15.To rebut the presumption, it is open for the accused to rely on evidence led by him or the accused can also rely on the material submitted by the complainant in order to raise a probable defence.
Inference of preponderance of probabilities can be drawn not only from the materials brought on record by the parties, but also by the reference to the circumstances upon which they rely. Section 139 imposed on evidentiary burden and not a persuasive burden on the accused. As such, it is not necessary for the accused to come in the witness box in support of his defence.
16. According to PW1, when the complainant requested and demanded the accused for repayment of the said amount, then the accused used to avoid the same on one pretext or the other. Atlast, the accused voluntarily issued three cheques bearing No.013530, dated 25.06.2022 for sum of Rs.10,00,000/- under Ex.P4, another cheque bearing No.013531, dated 25.06.2022 for a sum of Rs.10,00,000/- under Ex.P5 and another cheque bearing No.0001604, dated 02.08.2022 for a sum of Rs.6,00,000/- under Ex.P6 towards discharge of part payment of the said loan amount. When the complainant presented the same in his bank on 03.08.2022, then the same was returned with an endorsement as “funds insufficient” in cheque return memos, dated 04.08.2022 under Ex.P7 to P9. Then, the complainant 12 Crl.A.No.94 of 2025 dated 05.05.2026 II ADJ cum I MSJ cum II Spl.Sessions to Atrocities against Women cum Family Court Medchal-Malkajgiri District at Kushaiguda got issued Legal Notice, dated 16.08.2022 under Ex.P10 to the accused through RPAD vide postal receipts under Ex.P11 and the same was received by the accused on 17.08.2022, through postal acknowledgment under Ex.P12, he got issued reply notice dated 01.09.2022 under Ex.P13, with all false and flimsy allegations and failed to repay the cheque amount.
17.The defence taken by the accused is that, the complainant is a money lender and got acquaintance to the accused as money lender and in the year 2012, he took an amount of Rs.20,00,000/- (Rupees
Twenty lakhs only) from the complainant/PW1 and the complainant/
PW1 insisted him to execute three promissory notes. Then, he executed three promissory notes for sum of Rs.10,00,000/- each in the year 2012 without mentioning date, no witnesses signed, no scribe mentioned. The complainant/PW1 also obtained some cheques in the year 2012, towards security. Thereafter, the accused paid the entire amount to the complainant/PW1 within two (02) years in different spells by way of cash and no amount is due to the complainant/PW1.
The accused requested to return back the said three promissory notes and cheques, but the complainant/PW1 failed to return the said blank promissory notes and cheques and said that they were misplaced and promised to return the same, after trace out of the same and the same 13 Crl.A.No.94 of 2025 dated 05.05.2026 II ADJ cum I MSJ cum II Spl.Sessions to Atrocities against Women cum Family Court Medchal-Malkajgiri District at Kushaiguda is clearly mentioned in the reply notice under Ex.P13.
18.Further, the accused taken the defence that, he maintained his bank accounts in Union Bank of India, Begumpet Branch, Hyderabad for his personal and business accounts. In the year 2014, due to business obligations, the accused changed his account from the said
Union Bank, Begumpet, Hyderabad to State Bank of India, SME,
Dilsukhnagar, Kothapet, Saroornagar Branch, Hyderabad. Subsequent to the year 2014, no cheques pertaining to the Union Bank of India issued by the accused, muchless, the alleged cheques of this case. The amount borrowed by the accused in the year 2012 were repaid by him and no existing liability to pay due amount to the complainant by the accused. As such, no enforceable debt in existence. If any amount was not paid the same is barred by limitation and the said contents clearly mentioned in the reply notice under Ex.P13.
19.The complainant/PW1 categorically admitted that, he did not file any civil suit for recovery of an amount of Rs.30,00,000/- and also admitted that, the contents of the reply notice are true. That means, the complainant/ PW1 admitted the contents of the reply notice under
Ex.P13 which the defence taken by the accused. Section 138
Negotiable Instruments Act, applies only when the cheque is issued to 14 Crl.A.No.94 of 2025 dated 05.05.2026 II ADJ cum I MSJ cum II Spl.Sessions to Atrocities against Women cum Family Court Medchal-Malkajgiri District at Kushaiguda discharge of a legally enforceable debt under the Limitation Act, 1963, a debt is generally enforceable for only three years from the date it became due. A debt originating in the year 2012, generally becomes time barred by the year 2015/2016. A cheque issued to pay a time barred debt does not attract liability under Section 138 of Negotiable
Instruments Act.
20.Although, Section 139 of Negotiable Instruments Act creates a presumption that, a cheque was issued for a debt, is the rebuttable presumption. It is strange that, the complainant/PW1 categorically admitted in his cross examination that, the contents of reply notice are true. Then, the admission in cross examination is fatal, when the complainant/PW1 admitted in his cross examination that the instruments was issued years earlier than, claimed i.e., in the year 2012. So also, the execution of promissory notes towards security for the debt obtained by the accused in the year 2012. There is clear mention in reply notice under Ex.P8 that, the execution of the promissory notes and issuance of cheques were given in the year 2012 as a security for an amount of Rs.20,00,000/- borrowed by the accused and the same were already repaid.
21.According to PW1, the accused executed three promissory notes 15 Crl.A.No.94 of 2025 dated 05.05.2026 II ADJ cum I MSJ cum II Spl.Sessions to Atrocities against Women cum Family Court Medchal-Malkajgiri District at Kushaiguda under Ex.P1 to P3, when he borrowed the alleged amount of
Rs.30,00,000/- from him on 15.12.2019. The admission in the cross examination of PW1 serves as the best evidence to rebut the presumption under Section 138 of Negotiable Instruments Act, rendering the case is not maintainable as there was no subsisting liability. Therefore, the complainant failed to establish the existence of legal enforceable debt under Ex.P1 to P3 and the accused issued cheques under Ex.P4 to P6 towards discharge of legal enforceable debt. Accordingly, the point no.1 is answered.
22. POINT No.2: Inview of the above discussion, in point no.1, the court is of view that, the appreciation of evidence of PW1 and PW2 coupled with the contents of documents under Ex.P13reply notice and the admission of PW1 in his cross examination is not proper perspective to come to conclusion by the trial court, that the accused issued cheque under Ex.P4 and P6 towards legal enforceable debt and the accused is liable for the offence under Section 138 of Negotiable
Instruments Act. As such, the interference by this appellant court is required and the conviction and sentence passed by the trial court in
STC (NI) No.752 of 2022 is not correct. Accordingly, the point no.2 is answered.
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23. POINT No.3: In the result, the criminal appeal is allowed by reversing the judgment of conviction and sentence recorded by the learned Prl. Junior Civil Judge-cum-IV Additional Judicial Magistrate of
First Class, Medchal-Malkajgiri District, Uppal at L.B.Nagar in STC (NI)
No.752 of 2022, dated 28.10.2025 for the offence under Section 138 of Negotiable Instruments Act, and the accused is acquitted for the offence under Section 138 Negotiable Instruments Act and the accused already is on bail (sentence suspension). The bail bonds of the accused shall be in force for six months.
(Partly written by me and typed by the Stenographer and partly typed to my dictation by the Stenographer and after correction, pronounced by me in the Open Court, on this the 05th day of May, 2026).
II Addl. District and Sessions
Judge-cum-I Addl. Metropolitan
Sessions Judge-cum-II Spl.
Sessions Judge for Fast tracking
the cases relating to the Atrocities against Women-cum- Family Court, Medchal-Malkajgiri District at Kushaiguda.
APPENDIX OF EVIDENCE
WITNESSES EXAMINED
FOR THE APPELLANT/ACCUSED :
-None- 17 Crl.A.No.94 of 2025 dated 05.05.2026 II ADJ cum I MSJ cum II Spl.Sessions to Atrocities against Women cum Family Court Medchal-Malkajgiri District at Kushaiguda
FOR THE RESPONDENT/COMPLAINANT :
-None-
EXHIBITS MARKED
FOR THE APPELLANT/ACCUSED :
-NIL-
FOR THE RESPONDENT/COMPLAINANT :
-NIL-
II Addl. District and Sessions
Judge-cum-I Addl. Metropolitan
Sessions Judge-cum-II Spl.
Sessions Judge for Fast tracking
the cases relating to the Atrocities against Women-cum- Family Court, Medchal-Malkajgiri District at Kushaiguda.