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IN THE COURT OF JUDICIAL MAGISTRATE OF FIRST CLASS,
PUNGANUR.
Present: - Sri R.Venkateswara Sharma
Judicial Magistrate of I Class
Madanapalle FAC Judl. Magistrate of I Class Punganur
Friday, the Eighteenth (18th) day of December, 2020
C.C.No. 275 OF 2015
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Between : -
Smt. G.Vanaja Kumari, W/o G.Chandra Sekhar Reddy, aged about 35 years, r/o D.No.24-16-3, Taj Nagar, K.G.N. Street, Punganur Town, Post and Mandal, Chittoor District (A.P.) ….COMPLAINANT
And : -
Smt.K.Bharathamma, W/o K.Sreenivasulu, aged about 40 years, Junior Telugu Pandit, Z.P. High School, Madanapalle, Chittoor District (A.P.) ….ACCUSED
This case coming on 11.12.2020 through physical hearing before me in the presence of Sri.Y.Bhaskar Reddy, learned counsel for Complainant and of Sri.M.Vijay Kumar, learned counsel for accused and this matter having stood over till this day, for consideration, this court delivered the following :-
J U D G M E N T
1)Smt.G.Vanaja Kumari, W/o G.Chandrasekhar, resident of
Punganur, has filed this complaint against accused, for the offence, under
Section 138 and 142 of N.I.Act, (for short, “the Act”), with the following allegations : -
2)Case of the complainant, as was projected is that, accused approached her and borrowed an amount of Rs.7,00,000/-, as hand loan, 2 upon receiving the said amount by the accused, she had issued a cheque bearing No.181657, dated 28/01/2013 for a sum of Rs.7,00,000/- drawn on
ING Vysya Bank Limited, Madanapalle Branch in favour of complainant towards satisfaction of the debt. Thereafter, inpsite of repeated demands made by her, accused did not choose to pay the amount. It is further alleged that, when she presented the said cheque in her banker, namely, Sapthagiri
Grameena Bank, Punganur Branch, on 28.01.2013, for collection, it was returned as unpaid on 30.01.2013 with a cheque return memo, with an endorsement of “Account closed referred by Drawee Bank”. Thereupon, she got issued a legal notice on 04.02.2013 demanding her to pay the cheque amount and that, accused having received the said notice on 06/02/2013, did not pay the amount to the complainant. Thus, the complainant after fulfilling all the legal formalities had come up with the present complaint against the accused.
3)After recording sworn statement of the complainant, this case was taken on file for the offence punishable u/s.138 r/w 142 of Negotiable
Instrument Act, against the accused.
4)On appearance, copies of documents have been supplied to the accused as required under Sec.207 Cr.P.C.
5)Accused was examined under Section 251 of Cr.P.C., explaining substance of accusation made against her. Her plea is one of total denial and she pleaded not guilty and claimed for trial.
6)During the course of enquiry, the complainant herself is examined as PW.1 and got examined PW2 and PW3 and marked Ex.P1 to
P9. After closure of the evidence, on behalf of the complainant’s side, accused was examined under Section 313 of Cr.P.C., explaining the incriminating material found against her, in the evidence of complainant’s witnesses. Her plea is one of total denial. However, she herself is examined as D.W.1 and got examined D.W.2 and marked Ex.D.1 to D.4, in support of her case.
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7)I have heard the learned counsel on both sides.
8)The points for consideration are : -
(i) Whether the complainant had succeeded in establishing her case that, there is legally enforceable debt, and the cheque covered by Ex.P.1 is issued towards discharge of the said debt?
(ii) Whether the accused has dispelled the presumption, as envisaged under section 139 of N.I.Act, with preponderance of probabilities?
(iii) To what relief?
9) POINTS 1 & 2:- It is the assertion of PW,1 that accused approached her and obtained hand loan of Rs.7,00,000/- and got issued a cheque covered by Ex.P.1 on 28.01.2013 towards discharge of the loan taken and that when she presented the same in her banker, namely, Sapthagiri
Grameena Bank, Pungaur on 28.01.2013 it was returned with a cheuqe return memo covered by Ex.P.3 and Ex.P.4 with an endorsement that “account closed” which made her to issue legal notice under Ex.P.5 but accused failed to make repayment having received the said notice under
Ex.P.7, according to her.
10)The version of PW.2 (P.Pavan) is that, on 28.01.2013 when himself and husband of PW.1 and one Y.Raviindra Reddy are talking with each other, accused came and borrowed an amount of Rs.7,00,000/- for the treatment of her husband and issued a cheque in her favour.
11)What PW.3 (Y.Ravindra Reddy) brother of PW.1 has stated is that, when himself, his brother-in-law and PW.2 were talking with each other on 28.01.2013 accused came and borrowed an amount of Rs.7,00,000/- for the treatment of her husband and issued a cheque in her favour.
12)Learned Counsel for the complainant, would maintain that, the evidence of PWs.1 to 3 coupled with Ex.P.1 to Ex.P.9 sufficiently establishes about borrowing of amount in question by the accused, and issuance of cheque under Ex.P.1, which was dishonored, when presented 4
before her banker. She further would contend that since the accused has
admitted her signature on Ex.P.1, cheque, which was dishonoured when presented before her banker, she is entitled for the benefit of presumption available u/section 118 and 139 of N I Act.
13)In a case of prosecution under Section 138 of the Act, the complainant is bound to prove that, there is a legally enforceable debt and in discharge of the said debt, accused had issued a cheque, either whole or in part, and the said cheque was returned by the bank unpaid, for want of ‘sufficient funds’. If, the holder of a cheque establishes that, he/she legally received the cheque from the drawer, the presumption under section 139 of the Act, follows to the effect that, there exists a legally enforceable debt, in between the parties and the cheque was issued, for discharge of the said debt, and unless contrary is proved, the Court shall presume that, every negotiable instrument was made or drawn for consideration and the said presumption is rebuttable in nature and those presumptions shall come into play, when once accused admits his/her signature, on the documents in question.
14) Per contra, learned counsel for accused has mainly focused and contends that, no transaction whatsoever, as alleged took place and in fact, no scrap of paper in the form of documentary evidence is brought on record by the complainant establishing the factum of lending the amount in question. It is his further contention that, the complainant is a stranger to her and by misusing the cheque in question, which she had lost, this false complaint is filed. He further would contend that, PW.1 had no financial capacity of offering loan of Rs.7,00,000/- and in the absence of any such evidence establishing the financial capacity, case of complaint is to be viewed with suspicion. It is his further contention that, her husband is a member of private chits run by husband of PW.1, and having advantage of the same, by misusing the cheque in question, she was falsely implicated in this case and by saying so, he prays for acquittal of the accused.
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15)There can be no doubt that, there is initial presumption in favor of the complainant and such presumption can be rebutted in view of reverse onus by adducing independent evidence or by eliciting the material in the cross-examination of prosecution witnesses, which is favorable to the accused and when the accused could be able to dispel such presumption, the burden again will shift on to the complainant to say that, the cheque was issued towards discharge of legally enforceable debt. I do agree that, nowhere accused has taken any plea of disputing her signature on Ex.P.1 and more so, she has admitted that Ex.P.1 cheque belongs to her and as such, invariably, the complainant is entitled for benefit of presumption under section 118 and 139 of N.I. Act, as per the expression made by the Hon’ble
Apex court in the case of RANGAPPA Vs. SRI MOHAN 1
16)Undisputedly, as per the evidence on record, no document whatsoever, has been got executed by PW.1 in her favour from the accused at the time of allegedly lending the amount in question, for the reason of admission of PW.1 in her cross examination that, she did not obtain any pronote from the accused. Though, PWs.2 and 3 have testified in support of the case of PW.1 about lending of amount in question, nothing was spoken to by them as to whether or not any document in writing has been executed reflecting the alleged transaction. It is not a small amount and the amount allegedly lent towards hand loan by PW.1 is of Rs.7,00,000/- and when accused has taken a specific stand, the complainant is a stranger to her, it is highly unsafe to believe that PW.1 lent such huge amount, without getting executed any document reflecting the alleged transaction in her favour.
Moreover, no where, PW.1 had spoken about the date and time on which she allegedly lent the amount. It is only PWs.2 and 3 have stated that, amount was lent towards hand loan on 28.01.2013 which in my considered view is an improved version. It is for the complainant to prove that, accused has issued the cheque in question for discharge of legally enforceable debt or liability and the circumstances under which the cheque was issued in her favour and that, unless this initial burden is discharged by the complainant 12010(3) ALT (Crl.) 339 SC 6 the presumption available under section 139 cannot be made use of against the accused, as was laid down in the case of G.B.LINGAM VS. VITTA
MURALI KRISHNA MURTHY AND ANOTHER 2. relied on by the learned counsel for accused.
17)In the case of SHAIK AYAZ VS. ABDUL KHADAR AND
ANOTHER 3. It has been observed by the Hon’ble High Court of Judicature at Hyderabad in para-6 thus : - “Albeit a statutory presumption is created u/s.139 of the Act that the cheque was issued in discharge of a subsisting debt, the preponderance of judicial view is that the onus is upon the holder of the cheque to show that the cheque was issued in discharge of a subsisting debt. It was held in G.B.Lingam’s case that the initial burden rests upon the drawer. Though it was held initially by the Supreme Court in Modi Cemens Ltd., Vs. Kuchil Kumar Nandi (3) 1998 Crl.L.J. 1379 that once a cheque is issued by the drawer, a presumption u/s.139 of the Act would arise and that the drawer, however, would be entitled to unsettle the presumption by rebuttal evidence, it was held in Krishna Janardhan Bhat Vs. Dattatraya G.Hegde (4) 2008 (2) ALT (Crl.) 170 (SC) = 2008 (4) SCJ 749 = 2008 Crl.L.J. 1172 (SC) that the existence of legally recoverable debt is not a matter of presumption.”
18)If the facts of the case at hand are examined, keeping the ratio laid down in the cases referred above in mind, evidently no document got obtained by PW.1 from the accused and that no date and time was mentioned either in the complaint or in her evidence evidencing the alleged transaction as contended by PW.1. Even if presuming for a moment, that the case of PW.1 is true, as to issuance of cheque covered by Ex.P.1 on 28.01.2013 but according to PWs.2 and 3 accused has taken hand loan on the same day, and in such a case, PW.1 ought not have presented the said cheque on the same day for collection, for the reason that, if accused has got such amount in her bank, and asked PW.1 to present the same on the same day, there is no necessity for accused to approach her for borrowing
Rs.7,00,000/- towards hand loan. This obviously suggests this court that, 21997(2) ALT (Crl.) 100 AP 32012(1) ALT (Crl.) 110 AP 7
PW.1 appears to have created a story, as if accused borrowed the said amount in the presence of PWs.2 and 3 on 28.01.2013, issued a cheque covered by Ex.P.1 asking her to present before the bank on the same day and thus, if the case of PW.1 coupled with the documents filed by her is tested on the touch stone of probabilities, there appears no nexus in the evidence brought on record for believing her version.
19)Nextly, it is canvassed by the learned counsel for the accused that, PW.1 had no financial capacity of offering the amount in question and in the absence of establishing the factum of financial capacity of PW.1 with legal and acceptable evidence, it cannot be said that the complainant is able to discharge the burden lies on her and in support of her case, she has placed reliance on a decision reported in JOHN K.ABRAHAM VS. SIMON
C.ABRAHAM AND ANOTHER 4 .
20)PW.1 in her cross examination has stated that, she is house wife and that she is not doing any work or business. She denied when suggested that one Chenga Reddy, junior paternal uncle of her husband is doing chit business. PWs.1 to 3 though in one voice, have stated that parents of PW.1 had given some amount for purchasing a new house and out of the said amount, she gave the amount to the accused, in fact, there is no consistency in the evidence of PW.1 and PW.2 on the said aspect for the reason that, according to PW.1, she is living in a rented house, whereas, PW.2 has stated that, he is tenant of PW.1. To strengthen her case that she has got financial capacity, PW.1 had exhibited Ex.P.8 pass book stands in her name of
Saptagiri Grameena Bank, Punganur and Ex.P.9 certificate issued by Chief
Manager, Saptagiri Grameena Bank, Punganur. It is of course, true that, some amounts have been transferred from the account of complainant to the account of one Veeramma, which is evident from Ex.P.9, but the said transaction was made on 31.10.2011. The recitals under Ex.P.8 pass book though speaks about the transactions which runs into lakhs of rupees, but the fact remains is that, as on the date of alleged issuance of cheque by the accused i.e., on 28.01.2013 the balance amount standing at the credit of 42014(2) ALD (Crl.) 61 SC 8
PW.1 is only Rs.3,06,733/-. It is not the case of the complainant that, she had lent the amount from her savings kept in her house or by withdrawing amount from some of her accounts relating to other branches. When the complainant is not even aware of the date when substantial amount of
Rs.700000 was advanced by her apart from the factum of her failure to place sufficient documentary evidence, showing her financial capacity of lending such huge amount, without any hesitation, it can be said that the amount allegedly lent by her is an unaccounted money. The burden of establishing the financial capacity heavily lies on the complainant to have shown that, she had required funds for having advanced money to the accused and failure on her part to substantiate the same with legal and acceptable evidence entitles the accused to get benefit of dispelling the presumption.
21)In the case ofBASA LINGAPPA VS. MUDI
BASAPPA 5decided on 09.04.2019 by the Hon’ble Apex court after referring to a catena of decisions including the presumptions under section 118 and 139 of the Act has held that, it was incumbent upon the complainant to have explained his financial capacity and the court cannot insist on a person to lead negative evidence. Therefore, if the case of complainant and accused is examined, with reference to the materials brought on record, case of accused appears to be more probable than the case of complainant and that, when the complainant failed to establish with positive material as to her financial affluence of lending such huge sum, the conclusion that can be arrived is that, the amount allegedly lent is not legally recoverable and in such a case, it is difficult to say that the cheque in question was issued towards legally enforceable debt and that the complainant has got financial affluence of lending such huge amount.
22)It is further canvassed by the learned counsel for accused that,
DW.1 (accused herein) came to know after the death of her husband that, her husband has got acquaintance with one Chenga Reddy, father-in-law of
PW.1 who is running private chits whereof, he joined as a member and 5CRIMINAL APPEAL NO.636 of 2019 (arising out of SLP (Crl.) No.8641/2018) 9 during search in her house, she found noticed Ex.D.1 to Ex.D.4 where under it reveals that her husband has paid an amount of Rs.7,19,000/- under Ex.D.1 on 09.02.2013 and Rs.2,50,000/- and Rs.18,500/- under Ex.D.2 and that
Rs.86,650/- on 23.01.2013 under Ex.D.3 and on the same day another amount of Rs.56,000/- has been received by Chandra Sekhar Reddy towards chit transaction under Ex.D.4. PW.1 has bluntly denied about her husband doing chits business along with her father-in-law. DW.1 in her cross examination denied when suggested by the complainant that her father-in- law and her husband run the private chits. When DW.1 has categorically stated that she does not know G.Chandra Sekhar Reddy, husband of PW.1 and the chit transaction in between her husband and husband and father-in- law of PW.1, and taken a specific stand by producing Ex.D.1 to Ex.D.4 that, she came to know about the payments made by her husband to the father-in- law and husband of PW.1, burden again shifts on the complainant to disprove the said factum by summoning the elders in whose presence the alleged transaction took place, in order to discharge the reverse onus lies on the complainant. However, admittedly, no such effort has been made by the complainant, for the obvious reasons known to her and that except denying that her husband and father-in-law used to run private chits, no contra evidence is let in by the complainant disputing the signatures of Chenga
Reddy and Chandra Sekhar Reddy on Ex.D.1 to Ex.D.4. Had the complainant examined any one of the elder to the said transactions under
Ex.D.1 to Ex.D.4, there could be some justification in believing the version of PW.1. On the other hand, accused got examined DW.2 A.Krishna
Murthy, one of the elder to Ex.D.1 to Ex.D.4 to prove the factum of the transaction allegedly took place under Ex.D.1 to Ex.D.4. In his cross examination what DW.2 has stated is that husband of accused personally came to him and asked him to act as mediator and according to him, all the endorsements under Ex.D.1 to Ex.D.4 are written by Chenga Reddy.
Nothing necessiated DW.2, an independent witness to speak against the complainant and in support of accused.
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23)In the case of KALI RAM VS. STATE OF HIMACHAL
PRADESH 6, it was held by the Hon’ble Apex Court, that one of the cordial principles which has always to be kept in view in our system of administration of justice for criminal cases is that, a person arraigned as an accused is presumed to be innocent unless that presumption is rebutted by the prosecution by production of evidence as may show him to be guilty of offence with which he is charged. It was further observed that there are certain cases in which statutory presumptions arise regarding guilt of accused but the burden even in those cases is upon the prosecution to prove the existence of facts which have to be present before presumption can be drawn.
24)On a careful scanning of oral and documentary evidence let in by both parties, despite accused has taken a stand that she came to know about the chit transactions held in between her husband and husband of
PW.1 and her father-in-law only after the death of her husband and produced
Ex.D.1 to Ex.D.4, evidently, the complainant has not placed any contra evidence to disprove the factum of alleged transactions covered by Ex.D.1 to
Ex.D.4 where under husband of accused has paid the amounts. The onus in these type of cases upon the accused is not as heavy as is normally upon the prosecution to prove the guilt of accused. If some material is brought on the record consistent with the innocence of accused which may reasonably be true, even though it is not positively proved to be true, the accused would be entitled to acquittal. Thus, I am of the considered view that the complainant failed to discharge the reverse onus lies on her, in order to disprove the factum of the alleged transaction that took place in between the husband of accused and her husband and father-in-law as was depicted in Ex.D.1 to
Ex.D.4 and as such I have no hesitation to say that case of accused appears to be more probable than the case of complainant and thereby I hold that accused could be able to dispel the presumption envisaged under section 139 of the Act by adducing probable defence. These points are answered accordingly, in favour of accused and against the complainant.
61973(2) SCC 808 11
25)POINT NO.3 : -In view of my findings on points 1 and 2, I hold that the complainant failed to establish her case within the parameters of section 138 of the Act against the accused and as such, it is liable to be dismissed. Accordingly, this complaint is dismissed and consequently, accused is acquitted under section 255(1) Cr.P.C. Bail bonds of accused, if any, shall stands cancelled.
Typed to my dictation by the Stenographer, corrected, signed and
pronounced by me in open Court by uploading the judgment in e-courts, on
this 18 th day of December, 2020.
Sd/- R.VENKATESWARA SHARMA
II ADDL. JUDL. MAGISTRATE OF I CLASS
MADANAPALLE
FAC JUDL. MAGISTRATE OF I CLASS
PUNGANUR
APPENDIX OF EVIDENCE
Witness examined for :
ComplainantAccused
PW.1G.Vanaja KumariDW.1Bharathamma
PW.2P.PavanDW.2K.Krishna Murthy
PW.3Y.Raveedra Reddy
Exhibits marked on behalf of the Complainant
Ex.P.128.01.2013Original Cheque bearing No.181657 drawn on ING Vysya Bank Ltd., Madanapalle Branch, for an amount of Rs.7,00,000/-
Ex.P.228.01.2013Original Counter foil of Sapthagiri Grameena Bank, Punganur Branch
Ex.P.330.01.2013Original Cheque return memo issued by ING Vysya Bank Ltd., Madanapalle Branch
Ex.P.431.01.2013Original Cheque return memo issued by 12
Sapthagiri Grameena Bank, Punganur Branch
Ex.P.504.02.2013Office Copy of Legal Notice
Ex.P.604.02.2013Original Postal Receipt
Ex.P.7--Original Postal Acknowledgment Card
Ex.P.8--S.B. A/c. No.82740879 Pass Book of Sapthagiri Grameena Bank, Punganur
Ex.P.9--Certificate issued by Chief Manager, Sapthagiri Grameena Bank, Punganur
Exhibits marked on behalf of the Accused
Ex.D.109.02.2013Entry in the Note Book for Rs.7,19,000/-, transaction between the husband of accused and husband of P.W.1
Ex.D.209.02.2013Entry in the Note Book, for Rs.2,50,000/- and Rs.18,500/-, transaction between accused husband and G.Chenga Reddy, which was signed by G.Chenga Reddy(Father-in-law of P.W.1).
Ex.D.323.01.2013Entry in the Note Book, for Rs.86,650/- transaction between accused husband and G.Chenga Reddy, in respect of chits, which was signed by G.Chenga Reddy (Father-in-law of P.W.1).
Ex.D.423.01.2013Entry in the Note Book, for Rs.56,000/-, transaction between accused husband and G.Chandra Sekhar Reddy, in respect of chits, which was signed by G.Chandra Sekhar Reddy (Husband of P.W.1) Id/- RVS
II AJMFC, MPL
FAC JMFC, PGR
//True copy//
II ADDL. JUDL. MAGISTRATE OF I CLASS
MADANAPALLE
FAC JUDL. MAGISTRATE OF I CLASS
PUNGANUR
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FORM NO.72
CALENDAR AND JUDGMENT
District of Chittoor, Calendar and cases tried by the Judicial Magistrate of I Class, Punganur
1.Offence:30.01.2013
2.Report of complaint: 25.02.2013
3.Apprehension of accused:26.06.2013
4.Release on bail:26.06.2013
5.Commencement of trial:04.05.2015
6.Close of trial:13.12.2019
7.Sentence of order:18.12.2020
8.Explanation of delay and :For non production of witnesses remarks
Judgment in Calendar Case No.275 of 2015 on the file of Judicial
Magistrate of I Class, Punganur
Complainant : Smt. G.Vanaja Kumari, W/o G.Chandra Sekhar Reddy, aged about 35 years, r/o D.No.24-16-3, Taj Nagar, K.G.N. Street, Punganur Town, Post and Mandal, Chittoor District (A.P.)
Name of accusedAge yearsFather/Husband’s name (1)(2)(3)
K.Bharathamma40K.Sreenivasulu
ReligionCallingResidenceMandal (4)(5)(6)(7)
Junior Telugu Pandit HinduMadanapalleMadanapalle ZP High School
Offence:Section 138 r/w 142 of Negotiable Instrument Act –
Dishonour of cheque for insufficiency, etc., of funds in the 14 account.
Finding:Accused is found not guilty of the offence u/s.138 r/w 142 of
N.I. Act
Sentence:In view of my findings on points 1 and 2, I hold that the complainant failed to establish her case within the parameters of section 138 of the Act against the accused and as such, it is liable to be dismissed. Accordingly, this complaint is dismissed and consequently, accused is acquitted under section 255(1) Cr.P.C. Bail bonds of accused, if any, shall stands cancelled
Sd/- R.VENKATESWARA SHARMA
II ADDL. JUDL. MAGISTRATE OF I CLASS
MADANAPALLE
FAC JUDL. MAGISTRATE OF I CLASS
PUNGANUR
//True copy//
II ADDL. JUDL. MAGISTRATE OF I CLASS
MADANAPALLE
FAC JUDL. MAGISTRATE OF I CLASS
PUNGANUR