1
IN THE COURT OF THE JUDL. MAGISTRATE OF I CLASS AT
KOTABOMMALI
Present : Sri Shaik Meera Khasim Saheb.
Judicial Magistrate of I Class, Kotabommali
Thursday this the 30 th day of November, 2017.
C.C.No. 166/2011
BETWEEN:
Suru Suresh, S/o.Satyanarayana, aged about 26 years, Business, Vysya by caste, R/o. Nimmada Village & Post, Kotabommali Mandal & PS Limits,
Srikakulam District. ...Complainant.
AND:
Chennelli Kamalavasan, S/o.Bairagi, R/o. I.S Residence, D.No. 9-4-131/1/N 113/35, Tolichowky, Neeraja Colony, Golkonda PS Limits, Hyderabad . ..... Accused.
This case coming before me on 29.11.2017 for final hearing in the presence of Sri Pujari Vasudevarao, Counsel for the Complainant and of Sri Krishna Murthy, P.Rama Rao Counsels
for the Accused, upon perusing the material papers on record
and on hearing both sides and having stood over for consideration till this day, the Court delivered the following:-
J U D G M E N T
1.The accusation levelled against the accused is that he issued a cheque on 24.06.2011, for an amount of
Rs.3,60,000/-(Rupees three lakhs and Sixty thousand only) and on 27.06.2011 issued a another cheque for an amount of
Rs.3,00,000/-(Rupees three lakhs only) drawn on State Bank of
India, Secundrabad Branch , in his favour and the same was returned un-paid due to “insufficient funds” and the two cheques were dishonoured and thereby committed an offence punishable
U/s 138 of Negotiable Instruments Act.
2
2.The necessary facts for disposal of the case in nutshell are stated as follows:-
The complainant and the accused jointly did a business deeds and in the said business transactions the accused fell due to him an amount of Rs.6,60,000/- (Rupees six lakhs and sixty thousand only). And there were a good acquaintances and good terms in between himself and accused, so that he believed the accused and he did not obtained any written documents as to aforesaid due amount. And the documentary papers of business were kept with the accused. And thereafter he demanded the accused for repayment of the said due amount for which he admitted his liability, but postponed the same on some pretext or other. And then he strongly demanded for repayment of his legal debt, for which the accused issued a cheque bearing
No.134576 for an amount of Rs.3,60,000/- on 24.06.2011 and also issued a another cheque bearing no. 134579 for an amount of Rs.3,00,000/-. On 27.06.2011 in his favour payable at the
State Bank of India, Secunderabad in order to discharge his legal debt to him.
When the complainant deposited the said two cheques for collection in his Bank i.e., Andhra Bank, Kotabommali , and that two cheques returned unpaid by the Banker of the accused on 24.08.2011 on the ground of ‘insufficient funds’ in the account of the accused. Therefore, the complainant got issued legal notice dt.02.09.2011 to the accused by registered post with acknowledgment due for demanding him to pay the above said dishonour cheques amount within 15 days from the date of receipt of the notice, but the accused did not claim the registered post legal notice so the postal authority send the same to his counsel. The accused even after refusal of registered notice did not turn up and did not pay the said cheques amount to him. Hence, the complainant filed this complaint against the accused for an offence punishable
U/sec.138 of Negotiable Instruments Act.
3
3.The case was taken on file against the accused
Under Section 138 of Negotiable Instruments Act.
4.On appearance of the accused, copies of documents were furnished to the accused as required Under Section 207
Cr.P.C.
5.The accused was examined Under Section 251
Cr.P.C., by explaining the substance of the accusation constituting an offence punishable Under Section 138 of
Negotiable Instruments Act for which he pleaded not guilty and claimed to be tried. Hence the matter was posted for trial.
6.In support of his claim, the complainant got examined himself as PW.1 and also examined the Branch
Manager of Andhra Bank, Kotabommali viz., Aravelli Vidya
Praveen as PW.2 and got marked EXs.P1 to Ex P7.
7.After closure of the complainant side evidence, the accused was examined u/s 313 Cr.P.C., enabling him to explain the incriminating material available in the evidence of
Complainant against him for which he denied the said evidence as false and examined himself as a defence witness (DW.1) and got marked EX R.1 to Ex R.3. Ex R.1 is the certified copy of the report PW.1 along with FIR, Ex R.2 is the NJ stamp paper and Ex
R.3 is the Charge sheet in CC 142/2015 on the file of JMFC,
Narasannapeta.
8.Heard both sides.
9.Now the point for consideration is :
“Whether the complainant has proved the guilty of
the accused for an offence punishable Under Section
138 of Negotiable Instruments Act and whether
the accused is liable for punishment of the same?” 4
10.P O I N T:
To prove the above case, the Complainant got examined himself as PW.1 got marked EXs.P1 to Ex P7. Ex.P1 is the cheque an amount of Rs.3,60,000/- dated 24.06.2011, Ex.P2 is the cheque an amount of Rs.3,00,000/- dated 27.06.2011,
Ex.P.3 & Ex P.4 are the cheque dishonour memos issued by
Andhra Bank, Kotabommali branch. Ex.P.5 is the office copy of legal notice dt.02.09.2011, Ex.P.6 is the registered returned cover along with acknowledgement. Ex P.7 is the postal receipt dated 02.09.2011.
11.It is well settled proposition of law that the initial burden lies on the drawee i.e., complainant to prove that the cheques in question was issued for a legally enforceable debt or liability due to him. Once the complainant discharges from his initial burden, the onus of proof shifts on to the accused to rebut the presumption Under Section 139 of N.I. Act, that the cheque was issued for a legally enforceable debt or liability. At this juncture, it has to be evaluated whether the complainant could be discharged from his initial burden to prove that Ex.P.1 & Ex P.2 cheques were issued for legally enforceable debt or liability.
12.The complainant viz., Sure Suresh (PW-1) had deposed that in his evidence that he knew the accused and acquainted with him business (Rice transactions) and he has used to supply the Rice bags to the accused and in turn he was selling the same and in the business transactions the accused fell due to him an amount of Rs.6,60,000/- and he demanded the accused to repay the said amount and the accused postponed the same and the later the accused informed to him that he had a sufficient funds in his account SBI, Secundrabad and got issued the Ex P.1 cheque for Rs.3,60,000/- and another Ex P.2 cheque for an amount of Rs.3,00,000/- drawn on SBI, Secundrabad branch in his favour towards part payment of his debt. Then he presented Ex P.1 & Ex.P.2 cheques for collection, in Andhra
Bank, Kotabommali branch and the said two cheques returned 5 unpaid with Ex P.3, Ex P.4 memos, on the ground that “insufficient funds” and therefore, he got issued the Ex P.5 legal notice to the accused under Ex.P.7 postal receipt and the said notice was refused to take by the accused and the said notice was returned vide Ex P.6 (not unclaimed). And the accused did not pay the cheques amount within the stipulated period and hence he filed the complaint against the accused.
13, PW-2: Sri Aravelli Vidya Praveen , Branch Manager of Andhra bank, Kotabommali, had deposed in his evidence that
PW.1 having a account in his branch since 2011 and subsequently the account was closed by the Pw.1 in the year 2013. And further deposed that PW.1 presented a Ex P.1 & Ex P.2 cheques for collection in his branch on 27.06.2011 and the same was returned with their bank memo dated 24.08.2011 (Ex P.3, Ex
P.4) on the ground that “funds insufficient”.
14.On the other hand the accused examined himself as a DW.1 and he had deposed in his evidence that, he had acquaintance with the Pw.1 from 2009 through one Jagadeesh at
Kambakaya Village of Narasannapeta Mandal and in the year 2009, PW.1 approached him and taken him to translate the language in between the PW.1 and the his agent viz., Mohammad
Mastan of Hyderabad with regard to the job in Railways and on that Pw.1 paid Rs.1,00,000/- to the said agent in his presence and later the said agent not provide the job to the PW.1 for which
PW.1 taken the mediator/elder (K.HariVara Prasad) to the
Hyderabad and both are pressurized him to pay that amount and on that in the year 2010 he had given a two cheques (unfilled cheques with his signatures) and one Rs.100/- NJ stamps (un- filled stamp paper) and further in the year 2015 PW.1 filed a criminal case Under Sections 420, 406, r/w 34 IPC against the him and his family members at Narasannapeta PS and the same is pending before the Hon'ble JMFC, Narasannapeta vide CC 147/2015 and the in the said case when he was in the remand period and after lease of bail then PW.1 served the summons in this case upon him and PW.1 never issued any legal notice to 6 \him in this case later Pw.1 got filed the false against him by filled said two cheques which was earlier given to them and he has no business transactions with PW.1 prior to 2009 or after 2009 and he filed the Ex R.1 to Ex R.3 certified copies of the report, NJ stamp paper, charge sheet. Hence request the court to dismiss the complaint as there is no legal enforceable debt.
15. As seen from the defence of the DW.1 , what he had deposed in his evidence and that was not made out by the DW.1 through the cross examination of the PW.1. The accused cross examined the Pw.1 and elicited and taken a different versions of plea which was inconsistent to the evidence of DW.1. The counsel for the PW.1 cross examined the DW.,1 and in the cross examination of the DW.1 he admitted that as per his instructions his counsel cross examined the PW.1.
16. A perusal of the cross examination of the PW.1 by the defence, the accused (DW.1) taken a plea that, he never issued
Ex P.1 & Ex.P.2 cheques to the P.W.1 and the accused not fell due an amount of Rs.6,60,000/- in the business transactions and the accused did not issued Ex P.1, Ex P.2 in token of the above aforesaid debt. And further the plea of the accused is that in the year 2010, PW.1 obtained the double signatures of the accused on Ex P.1 & Ex P.2 at his relatives STD booth , Narasannapeta.
And further contention of the defence is that PW.1 is an un- employee and collected the amounts from his 5 friends (L.Satyanarayana, Kanithi Annamraju, Sakalabaktula Trinadharao,
Seela Krishna Murthy, Ijjada Govida rao, CH.Govindarao) and with his influence to secure the employment to them they paid the amount to PW.1 and in turn PW.1 went to Hyderabad and contacted the Railway officials and due to the language problem with the said Railway officials, then PW.1 contacted the accused who knows in the Hindi and English and he negotiations with him to the Railway employees and paid the amount to them and when they fail to provide his job then PW.1 filed this false case against the accused. And later PW.1 and the Hari Vara Prasad went to Hyderabad and settled the payments with regard to the 7 employments with the Railway officials in the presence of the accused and his mother prior to July, 2011.
17.So as seen from the cross examination of the PW.1 by the defence and the evidence deposed by the DW.1 inconsistence of pleas taken by the Dw.1(accused). As per the evidence of DW.1, PW.1 and one mediator viz., (K.Hari Vara
Prasadd) came to Hyderabad and both are pressurized him and to pay the amount in the year 2010 and on that he had given two cheques (Ex P.1 & Ex P.2), Rs.100/- NJ stamps. As in the cross examination of the PW.1, the defence given a suggestion that in the year 2010 PW.1 obtained double signatures of the accused on Ex P.1, Ex P.2 at his relatives STD booth at Narasannapeta. But where as in the cross examination of the DW.1 , he admitted that
PW.1 and K.J.Vara Prasad came to his house at Tolichoky , Neeraja
Colony, Hyderabad. And forcibly obtained the two cheques (Ex
P.1, Ex P.2) and stamp papers. And admittedly by the Dw.1 that he did not issue any legal notice or the police report against the
PW.1 and the said Vara Prasad about the forcibly obtained of the
Ex P.1, Ex P.2 unfilled cheques with his signatures. So in the absence of the same it cannot be accepted the plea of the accused that Ex P.1, Ex P.2 cheques were obtained in the year 2010 by the PW.1, said Vara prasad with forcibly. And not only that and another way the Dw.1 stated that the said cheques were obtained from him at Narasannapeta STD booth. So the plea of the defence with regard to the Ex P.1, Ex P.2 cheques were concerned it could not be believable.
18.Complainant counsel vehemently argued that the accused made a false plea that Exs.P.1 and P.2 cheques were obtained from the accused forcibly by him and the said Vara
Prasad in the year 2010 by forcibly at Hyderabad. And the EX
P.1, Ex P.2 were issued by the accused towards the due amount of his legal debt. And the accused simply denied that PW.1 never issued the Ex P.5 legal notice to him and it is not the case of the accused that Ex P.5 legal notice was sent to his wrong address and the Ex P.6 said registered returned cover along with 8 acknowledgement cover the postal authority return as “not claimed” So the accused wantonly avoid to take the notice and it is a deemed service the Ex R.1 to Ex R.3 certified copies of FIR,
Report of the PW.1 and NJ stamps is relating to the CC 142/2015 and it was no way concerned to this case. Hence, request the court to punish the accused as per law.
19.There is a force on arguments advanced by the complainant counsel. As seen from the evidence of P.Ws.1 and
PW.2, in the cross-examination P.W.1, he admitted that Ex P.1, Ex
P.2 cheques were belongs to him. But taken defence that the said Ex P.1, Ex P.2 cheques were obtained by the PW.1 with his (DW.1) double signatures on Ex P.1, Ex P.2 at his relatives STD booth, Narasannapeta and the accused not taken a specific plea that the writings in Ex P.1, Ex P.2 cheques are not belongs to him.
20. The learned counsel for the accused vehemently argued that the cheques (Ex P.1, Ex P.2) in question has not been issued by the accused to the complainant and that the complainant failed to prove that the cheques in question was issued by him towards the discharge of any leally enforceable debt. He also argued that no notice has been issued and served upon the accused and this complaint is filed falsely against the accused.
21.The complainant got himself examined as PW-1 and he also examined Bank Manager, Andhra Bank, Kotabommali as
PW.2 and PW.1 categorically stated that in the business transactions the DW.,1 fell due to him an amount of Rs.6,60,000/- and when he demanded the accused to repay the said amount postponed the same and later he had issued the Ex p1, Ex P.2 cheques for the total amount of Rs.6,60,000/- (legal debt).
However, the accused is denying the issuance of the cheques in favour of P.W.1 towards discharge of legal enforceable debt. In this case it is pertinent to mention here that the accused admitted that the signatures on Ex P.1, Ex.P.2 belongs to him.
9
22. The main contention of the accused is that he did not issue Ex P.1, Ex.P.2 cheques in favour of P.W.1 towards discharge of any legally enforceable debt.
23.The learned counsel for the complainant vehemently contended that the accused admitted about Ex P.1, Ex.P.2 cheques, and he did not issue Ex P.1, Ex.P.2 cheques as towards the due legal debt of PW.1. And when the accused admitted Ex
P.1, Ex.P.2 cheques were belongs to him, presumption arises that the cheques were drawn for consideration on the date which the cheque bears,In this connection, he placed strong reliance in the case of: K.Bhaskaran Vs. Shankaran Vaidhyan
Balan and Another/MANU/SC/0625/1999 = 2000
(1) ALT (Crl.) 42 (SC),whereinthe Hon’ble Apex
Courtheld in para -10 as follows:-
“As the signature in the cheque is admitted to be
that of the accused, the presumption envisaged in
Sec.118 of the Act can legally be inferred that the cheque
was made or drawn for consideration on the date which
the cheque bears. Sec.139 of the Act enjoins on the court
to presume that the holder of the cheque received it for
the discharge of any debt or liability. The burden was on
the accused to rebut the aforesaid presumption.”
24.In the present case, the accused admitted that Ex
P;1, Ex.P-2 cheques belongs to him, but according to him, he did not issue them to PW-1 towards discharge of any legally enforceable debt. The accused, except simply stating that he did not issue the said cheques towards the discharge of any legally enforceable debt or liability, he did not choose to adduce any rebuttal evidence in this regard. Except the evidence of D.W.1.
25.He also relied on another case in K.N.Beena Vs.
Muniyappan and Another/MANU/SC/0661/211 =
10
2001 (2) ALT (Crl.) 382 (SC)wherein the Hon’ble
Apex Court held that –
“In a complaint under Section 138 of the Negotiable
Instruments Act, the Court has to presume that the
cheque was issued for a debt or liability and the burden
is on the accused to rebut the presumption.”
26.In the present case also, though the accused denied to have issued Ex P.1, Ex.P-2 cheques towards discharge of any legally enforceable debt, he failed to adduce evidence to rebut the presumption under Section 118 of the Negotiable
Instruments Act. Therefore, presumption can be drawn that the accused has issued Ex.P-1 cheque in favour of PW-1 towards the discharge of legally enforceable debt. Though the accused examined as a DW.1 , as stated supra DW.,1 failed to prove his defence.
27.The learned Counsel for the accused vehemently contended that no notice has been sent to the accused at
Hyderabad his residential address. So, the accused not received the Ex P.5 notice.
28. The defence counsel also submitted a decision reported in the case of: K.Annaji Rao. Vs. N.Krishna
Raju Sekhar and another = 2004 (1) ALD (Crl.)
815 (A.P) wherein the Hon’ble High Court held
that
“Notice should not be deemed to have been served
as a matter of course and deemed service is to be
accepted in the facts of each case as required
u/s.138 (b) read with clause (c) thereof .”
29.The complainant has not adduced evidence to show that the notice sent by registered post was served on the 11 accused and further also placed the Note Case (M.P) that when the intimation was given about the registered post by the postman, the complainant has to examine the concerned postman to prove the fact intimation was given to the accused as 'not claimed'. But the P.W.1 failed to prove about the intimation about the notice to the accused through postman. Hence, request the court to acquit the accused on this ground.
30.I have gone through the above Hon’ble High Court decisions, wherein the Hon’ble High Court held that when no evidence was adduced that the notice sent by registered post was served, it is to be said that service of notice on the accused is not proved. But the complainant relied upon Apex Court decision reported in: 2007(2) A.L.D. (Crl.) 294 S.C., and the
Apex court decision is applicable to the present facts and circumstances of the case and 2009 (2) A.L.D. (Crl.)(NOC) 30 (MP) is only the Note of case and it cannot be given much weight in view of the Hon’ble Apex Court decision reported in 2007 (2)
A.L.D. (Crl.) 294.
31. Ex.P.5 office copy of the legal notice, which was sent to the accused (Ex P.6 returned cover) is addressed to the accused to his address ie., D.No.9-4-131/1/N/113/35, Neeraja
Colony, Hyderabad and Ex.P.7 Postal receipt dated 02.09.2011 is also the same address in Hyderabad and Ex.P.6 returned registered post cover is also the same address.
32.The learned counsel for the complainant vehemently argued that the accused simply had deposed in his evidence that, PW.1 never issued a any Ex P.5 notice to him and that to it is not the case of the DW.1 is that, PW.1 sent the Ex P.5 notice to his wrong address. knowing fully well about Ex.P.5 notice, he did not receive Ex.P.6 registered post, though, postal authorities were intimated to the accused about Ex.P.6 notice and the postal authorities made a endorsement that the “not claimed” and it is a sufficient service. In this regard, the learned counsel for the complainant relied upon the decision reported in: 2007 (2) ALD 12 (Crl.) 294 (SC), wherein the Hon’ble Apex Court held that “where payee dispatches notice by registered post with correct address of drawer of cheque, presumption under Section 27 would be attracted, which is far stronger presumption, than general presumption under Section 114 of Evidence Act –
Complaint only to contain basic facts regarding mode and manner of issuance of notice to drawer of cheque –It is then for drawer to rebut presumption about service of notice and show that he had no knowledge that notice was brought to his address or that address mentioned on cover was incorrect.”
33.The learned Counsel for the complainant relied on the case of: Joseph Jose Vs. J.Baby and State of
Kerala/MANU/KE/0409/2002 = 2002 Crl.L.J.4392,
wherein, the Hon’ble Kerala High Court held that –
“There is no burden on complainant to prove before
Court entire details of transaction resulting in
issuance of cheque and there is presumption that
cheque was issued for discharge of debt or other
legal liability.”
34. In the present case on hand, as already stated supra, the notice under Ex.P-5 was sent to the correct residential address of the accused and the same address was also mentioned in Ex.P-6 returned registered cover and on back it was endorsed intimation was given as “not claimed”.
35. In view of the observations made by the Hon’ble
Apex Court and also the Hon’ble Kerala High Court in the above cited decisions, this Court has no hesitation to hold that the service of Ex.P-5 legal notice is well established.
36.So in view of the above foregoing discussion, PW.1 proved his case against the accused beyond all reasonable doubt that Ex P.1, Ex.P.2 cheques were issued for discharge of legally 13 enforceable debt. and it was dishonoured due to “insufficient funds” in the account of accused as per Ex.P.3, Ex P.4 memos, as such, the accused is liable for conviction for the offence punishable u/s 138 of Negotiable Instruments Act.
37. In the result, the accused is found guilty for
the offence punishable Under Section 138 of Negotiable
Instruments Act and he is accordingly convicted of the
same Under Section 255 (2) Cr.P.C.
Directly typed to my acting steno, on my
personal lap top and corrected and pronounced by me in
the open Court on this the 30 th day of November, 2017.
Sd/-Shaik Meera Khasim Saheb,
JUDICIAL MAGISTRATE OF I CLASS,
KOTABOMMALI.
38. Heard about the quantum of sentence, for which the accused represented that he had wife and children and they are depending on his earnings and hence requested the Court to take a lenient view.
39. Hence, considering the representation made by the accused and the facts and circumstances of the case on hand, the accused is convicted u/s.255 (2) Cr.P.C., for the offence punishable u/s.138 of Negotiable Instruments Act and sentenced to suffer Simple Imprisonment for one (1) year.
Directly typed to my acting steno, on my personal
lap top and corrected and pronounced by me in the open
Court on this the 30 th day of November, 2017.
Sd/-Shaik Meera Khasim Saheb,
JUDICIAL MAGISTRATE OF I CLASS,
KOTABOMMALI
Appendix of Evidence
14
Witnesses Examined
For Prosecution : For
Defence :
PW.1 : Sure Suresh/dt 02.08.2017 -NIL-
PW.2: Sri Aravalli Vidya Praveen/dt 10.10.2017
Exhibits Marked for Prosecution
Ex.P1 is the cheque an amount of Rs.3,60,000/- dated 24.06.2011. Ex.P2 is the cheque an amount of Rs.3,00,000/-
dated 27.06.2011. Ex.P.3 & Ex P.4 are the cheque dishonour
memos issued by Andhra
Bank, Kotabommali branch.
Ex.P.5 is the office copy of legal notice dt.02.09.2011,
Ex.P.6 is the registered returned cover along with acknowledgement. Ex P.7 is the postal receipt dated 02.09.2011.
Exhibits Marked for Defence
Ex R.1 is the certified copy of the report PW.1 along with FIR.
Ex R.2 is the NJ stamp paper.
Ex R.3 is the Charge sheet in CC 142/2015 on the file of JMFC,
Narasannapeta.
Material Objects Marked
Nil.
Sd/-Shaik Meera Khasim Saheb,
JUDICIAL
MAGISTRATE OF I CLASS,
KOTABOMMALI
IN THE COURT OF THE JUDICIAL MAGISTRATE OF I CLASS,
KOTABOMMALI
CALENDAR AND JUDGMENT
C.C.NO.166/2011
Date of offence:Prior to -nil- Date of Complaint or report: - 15
Date of apprehension of - accused: Date of release on bail:- Date of commencement of 02.08.2017 trial: Date of close of trial:10.10.2017 Date of sentence or order:30.11.2017 Explanation of delay:Due to non production of witnesses by the prosecution. Name of the complaint:Suru Suresh, S/o.Satyanarayana, aged about 26 years, Business, Vysya by caste, R/o. Nimmada Village & Post, Kotabommali Mandal & PS Limits, Srikakulam District Name of the Father'sAgeReligionVillage & AccusedName Mandal Chennelli Kamalavasan, S/o.Bairagi, R/o. I.S Residence, D.No. 9-4- 131/1/N 113/35, Tolichowky, Neeraja Colony, Golkonda PS Limits, Hyderabad
Offence: Under Section 138 of NI Act
Finding: The accused found guilty.
Sentence or Order: Accordinglythe accused is found guilty for the offence punishable Under Section 138 of Negotiable Instruments Act and he is accordingly convicted of the same Under Section 255 (2) Cr.P.C and sentenced to suffer Simple Imprisonment for one (1) year.
SD/Shaik Meera Khasim Saheb,
Judicial Magistrate of I Class,
Kotabommali.
Copy submitted to Hon'ble I Additional District & Sessions Judge, Srikakulam for perusal. Copy to the Superintendent of Police, Srikakulam.