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M/S C P Rajappa And Son And Co vs M/S Chandrodaya Borewells
2024 Latest Caselaw 11571 Kant

Citation : 2024 Latest Caselaw 11571 Kant
Judgement Date : 27 May, 2024

Karnataka High Court

M/S C P Rajappa And Son And Co vs M/S Chandrodaya Borewells on 27 May, 2024

                            1             CRL.A NO.1977 OF 2021
                                        C/W CRL.A.NO.52 OF 2022
                                            CRL.A.NO.55 OF 2022


   IN THE HIGH COURT OF KARNATAKA AT BENGALURU

        DATED THIS THE 27TH DAY OF MAY, 2024

                       BEFORE

           THE HON'BLE MS.JUSTICE J.M.KHAZI

         CRIMINAL APPEAL NO.1977 OF 2021
                      C/W
          CRIMINAL APPEAL NO.52 OF 2022
          CRIMINAL APPEAL NO.55 OF 2022

IN CRL.A NO.1977 OF 2021

BETWEEN:

M/S C P RAJAPPA SON AND CO.,
REP BY SRI ANANDA
SALES EXECUTIVE
S/O LATE A S KRISHNAMURTHY
AGED ABOUT 58 YEARS
NO.5, GOWRI MANSION, M.R.R.LANE,
S.J.P. ROAD, BENGALURU - 560 002
                                            ......APPELLANT
(BY SRI. SANDESH C.R, ADVOCATE FOR
    SRI. JAYARAJ D S, ADVOCATE)

AND:

M/S CHANDRODAYA BOREWELLS
REP. BY SRI ANIL KUMAR A C
HARENAHALLI VILLAGE
A R POST K R PETE TALUK
MANDYA DISTRICT - 571 426

ALSO AT:
SRI ANIL KUMAR A C
NO.661 OLD MYSORE ROAD
K R PETE TALUK
MANDYA DISTRICT - 571 436
                                         .....RESPONDENT
(BY SRI. K.E.JAGADEESHA, ADVOCATE FOR
    SRI. S.RAJASHEKAR, ADVOCATE)
                             2             CRL.A NO.1977 OF 2021
                                        C/W CRL.A.NO.52 OF 2022
                                            CRL.A.NO.55 OF 2022


     THIS CRIMINAL APPEAL IS FILED UNDER SECTION
378(4) OF CR.P.C PRAYING TO a) SET ASIDE THE IMPUGNED
JUDGMENT AND ORDER DATED 15.09.2021 PASSED BY THE
XXVII ACMM, BENGALURU IN C.C.NO.23857/2019 IN
ACQUITTING       THE     ACCUSED/RESPONDENT       AND
CONSEQUENTLY, CONVICT THE ACCUSED-RESPONDENT BY
ALLOWING THE COMPLAINT ALONG WITH COSTS; b) GRANT
SUCH OTHER RELIEF/S AS THIS HON'BLE COURT MAY DEEMS
FIT ON THE FACTS AND CIRCUMSTANCES OF THE CASE
INCLUDING THE COST OF THIS APPEAL IN THE INTEREST OF
JUSTICE AND EQUITY.

IN CRL.A NO.52 OF 2022

BETWEEN:

M/S C P RAJAPPA SON AND CO.,
REP BY SRI ANANDA
SALES EXECUTIVE
S/O LATE A S KRISHNAMURTHY
AGED ABOUT 58 YEARS
NO.5, GOWRI MANSION, M.R.R.LANE,
S.J.P. ROAD, BENGALURU - 560 002
                                            ......APPELLANT
(BY SRI. SANDESH C.R, ADVOCATE FOR
    SRI. JAYARAJ D S, ADVOCATE)

AND:

M/S CHANDRODAYA BOREWELLS
REP. BY SRI ANIL KUMAR A C
HARENAHALLI VILLAGE
A R POST K R PETE TALUK
MANDYA DISTRICT - 571 426

ALSO AT:
SRI ANIL KUMAR A C
NO.661 OLD MYSORE ROAD
K R PETE TALUK
MANDYA DISTRICT - 571 436
                                         .....RESPONDENT
(BY SRI. K.E.JAGADEESHA, ADVOCATE FOR
    SRI. S.RAJASHEKAR, ADVOCATE)
                             3             CRL.A NO.1977 OF 2021
                                        C/W CRL.A.NO.52 OF 2022
                                            CRL.A.NO.55 OF 2022


     THIS CRIMINAL APPEAL IS FILED UNDER SECTION
378(4) OF CR.P.C PRAYING TO a) SET ASIDE THE IMPUGNED
JUDGMENT AND ORDER DATED 15.09.2021 PASSED BY THE
XXVII ACMM, BENGALURU IN C.C.NO.23855/2019 IN
ACQUITTING       THE     ACCUSED/RESPONDENT       AND
CONSEQUENTLY, CONVICT THE ACCUSED-RESPONDENT BY
ALLOWING THE COMPLAINT ALONG WITH COSTS; b) GRANT
SUCH OTHER RELIEF/S AS THIS HON'BLE COURT MAY DEEMS
FIT ON THE FACTS AND CIRCUMSTANCES OF THE CASE
INCLUDING THE COST OF THIS APPEAL IN THE INTEREST OF
JUSTICE AND EQUITY.

IN CRL.A NO.55 OF 2022

BETWEEN:

M/S C P RAJAPPA SON AND CO.,
REP BY SRI ANANDA
SALES EXECUTIVE
S/O LATE A S KRISHNAMURTHY
AGED ABOUT 58 YEARS
NO.5, GOWRI MANSION, M.R.R.LANE,
S.J.P. ROAD, BENGALURU - 560 002
                                            ......APPELLANT
(BY SRI. SANDESH C.R, ADVOCATE FOR
    SRI. JAYARAJ D S, ADVOCATE)

AND:

M/S CHANDRODAYA BOREWELLS
REP. BY SRI ANIL KUMAR A C
HARENAHALLI VILLAGE
A R POST K R PETE TALUK
MANDYA DISTRICT - 571 426

ALSO AT:
SRI ANIL KUMAR A C
NO.661 OLD MYSORE ROAD
K R PETE TALUK
MANDYA DISTRICT - 571 436
                                         .....RESPONDENT
(BY SRI. K.E.JAGADEESHA, ADVOCATE FOR
    SRI. S.RAJASHEKAR, ADVOCATE)
                               4            CRL.A NO.1977 OF 2021
                                         C/W CRL.A.NO.52 OF 2022
                                             CRL.A.NO.55 OF 2022


     THIS CRIMINAL APPEAL IS FILED UNDER SECTION
378(4) OF CR.P.C PRAYING TO a) SET ASIDE THE IMPUGNED
JUDGMENT AND ORDER DATED 15.09.2021 PASSED BY THE
XXVII ACMM, BENGALURU IN C.C.NO.23860/2019 IN
ACQUITTING       THE     ACCUSED/RESPONDENT       AND
CONSEQUENTLY, CONVICT THE ACCUSED-RESPONDENT BY
ALLOWING THE COMPLAINT ALONG WITH COSTS; b) GRANT
SUCH OTHER RELIEF/S AS THIS HON'BLE COURT MAY DEEMS
FIT ON THE FACTS AND CIRCUMSTANCES OF THE CASE
INCLUDING THE COST OF THIS APPEAL IN THE INTEREST OF
JUSTICE AND EQUITY.

     THESE APPEALS HAVING BEEN HEARD AND RESERVED
ON 31.01.2024, COMING ON FOR PRONOUNCEMENT OF
JUDGMENT THIS DAY, THE COURT DELIVERED THE
FOLLOWING:

                   COMMON JUDGMENT


     In these three separate appeals filed under Section

378 (4) of Cr.P.C, complainant has challenged the

acquittal   of   respondent/accused    for   the      offence

punishable under Section 138 of Negotiable Instruments

Act, 1881 (for short 'N.I. Act').


      2.    Parties to these appeals are common. The

transaction in respect of which these appeals are filed are

also one and the same. In fact the amount due under the

transaction between the parties was sought to be

realized through three separate cheques and on their

dishonour, three separate complaints came to be filed.
                             5               CRL.A NO.1977 OF 2021
                                          C/W CRL.A.NO.52 OF 2022
                                              CRL.A.NO.55 OF 2022


Hence, these appeals are clubbed together and decided

by a common order.


      3.   For the sake of convenience, parties are

referred to as complainant and accused.


      4.   It is the case of complainant that it is a

registered firm carrying on the business in the name and

style of C.P Rajappa Sons and Company. It is a

distributor of Finolex Rigid PVC - CPVC pipes and fittings

and other allied    products. Accused is one of             the

customers of complainant carrying on business of paints

and hardware. During the course of business, accused

approached the complainant for supply of CPVC, GPI

pipes and other materials. Accused agreed to pay the

amount within two months from the date of supply. In

the event of failure to making the payment within the

agreed period, accused also agreed to pay interest at

24% p.a.


      5.   Accordingly, accused placed orders for supply

of   GI    pipes   amounting    to   Rs.55,63,298/-        and
                                    6                  CRL.A NO.1977 OF 2021
                                                    C/W CRL.A.NO.52 OF 2022
                                                        CRL.A.NO.55 OF 2022


complainant     has     supplied        the     material.      Towards

repayment of the outstanding amount, accused has

issued cheques for a sum of Rs.12,72,227/- dated

10.06.2019,        Rs.5,38,720/-        dated      11.06.2019        and

Rs.9,70,702/-       dated   18.06.2019.            However,        when

presented    for    realization,       the    cheques     have      been

returned    dishonoured     for        want   of   sufficient     funds.

Complainant got issued legal notice to the accused.

Though duly served, the accused has neither paid the

amount due nor sent any reply. Hence the complaint.


     6.     Before the trial Court, accused has appeared

through counsel and contested the matter.


     7.     In order to prove the allegations against

accused, in all three cases, complainant has examined

one Anand working as Sales Manager as PW-1. In

C.C.No.23857/2019 Ex.P1 to 40, in C.C.No.23855/2019

Ex.P1 to 39 and in C.C.No.23860/2019, Ex.P1to 39 are

marked.
                                  7               CRL.A NO.1977 OF 2021
                                               C/W CRL.A.NO.52 OF 2022
                                                   CRL.A.NO.55 OF 2022


      8.    During the course of his statement under

Section    313   Cr.P.C,   the       accused   has   denied      the

incriminating evidence led by the complainant.


      9.    In fact, in all the three cases, the accused has

examined himself as DW-1 and relied upon Ex.D1 to 3.


      10. Vide the impugned judgment and order, the

trial Court has dismissed the complaints.


      11. Aggrieved by the same, the complainant has

filed these three separate appeals, contending that the

reasoning given by the trial Court in drawing its

conclusion that accused has paid the entire dues to the

complainant is not proper and correct while at the same

time, the complainant having substantiated his case

along with necessary documents. It is not in dispute that

complainant is a registered firm and accused is the

customer of the complainant firm, carrying on the

business of paints and hardware and regularly making

purchases on credit basis and used to pay the amount.
                             8              CRL.A NO.1977 OF 2021
                                         C/W CRL.A.NO.52 OF 2022
                                             CRL.A.NO.55 OF 2022


     11.1   The material placed on record establish the

fact that with regard to the purchases made by the

accused, a sum of Rs.27,81,649/- was due and the

cheques in question were issued towards payment of the

same, which ultimately came to be dishonoured for want

of sufficient funds. Without appreciating these facts and

without proper application of mind, the trial Court has

dismissed the complaint. The findings of the trial Court

are contrary to the evidence placed on record and as

such perverse. In the light of the presumption available

under Section 118 and 139 of the N.I. Act, the trial Court

has failed to appreciate the oral and documentary

evidence placed on record and fell into error in acquitting

the accused.


     11.2   Though the accused claimed that he has

maintained accounts he has not chosen to produce the

same and prove that the entire amount due from him is

repaid. He has also not produced his income tax returns

regarding discharge of the amount due from him. In fact,

accused has claimed that all the payments have been
                                  9               CRL.A NO.1977 OF 2021
                                               C/W CRL.A.NO.52 OF 2022
                                                   CRL.A.NO.55 OF 2022


made through Bank, but has failed to prove the same.

Having regard to the fact that the cheques belongs to the

accused and bear his signature, the presumption under

Section 139 of the N.I Act is operating in favour of the

complainant, placing the initial burden on the accused to

rebut the same, only after which the burden would shift

on the complainant to prove his case. However, the

accused     has   failed   to   rebut   the   presumption       and

therefore the burden has not shifted back to the

complainant.


     11.3    The accused has not produced the accounts

maintained by him and also income tax returns to prove

that the amount due to the complainant is paid. The trial

Court has also not appreciated the fact that despite

receipt of legal notice, accused has not sent reply putting

forth his defence at the earliest available opportunity.

The trial Court has erred in coming to the conclusion that

accused has paid the amount due simply on the ground

that during his cross-examination. PW-1 has admitted

that accused had issued blank cheques. The findings of
                               10             CRL.A NO.1977 OF 2021
                                           C/W CRL.A.NO.52 OF 2022
                                               CRL.A.NO.55 OF 2022


the trial Court are contrary to the contents of Ex.P37,

which is acknowledged by the accused. Viewed from any

angle, the impugned judgments and orders are not

sustainable and calls for interference by this Court and

pray to allow the appeal, convict the accused and

sentence him in accordance with law.


       12. In support of his arguments, learned counsel

for complainant has relied upon the following decisions:

      (i)     K.N.Beena Vs.Muniyappan (K.N.Beena)1

      (ii)    Rangappa Vs. Sri Mohan (Rangappa)2

      (iii)   R.Vijayan Vs. Baby and Anr. (R.Vijayan)3

      (iv)    Mainuddin Abdul Sattar Shaikh Vs. Vijay D.
              Salvi (Mainuddin)4

      (v)     Rohitbhai Jivanlal Patel Vs. State of Gujarat
              and Anr. (Rohitbhai)5

      (vi)    Bir Singh Vs. Mukesh Kumar (Bir Singh)6

      (vii) Uttam Ram Vs. Devindra Singh Hudam and
            Anr. (Uttam Ram)7



1
  (2001) 8 SCC 458
2
  2010 (11) SCC 441
3
  2012 (1) SCC 260
4
  2015 (9) SCC 622
5
  2019 (18) SCC 106
6
  (2019) 4 SCC 197
7
  2019 (10) SCC 287
                                     11               CRL.A NO.1977 OF 2021
                                                   C/W CRL.A.NO.52 OF 2022
                                                       CRL.A.NO.55 OF 2022


      (viii) Kalamani Tex and Anr. Vs. P.Balasubramanian
             (Kalamani Tex)8

      (ix)   Oriental Bank of Commerce                 Vs.    Prabodh
             Kumar Tewari (OBC)9

      (x)    Sh. Badri Prasad Vs. Sh. Padam Singh
             (Badri Prasad)10

      (xi)   Ramesh Chand            Vs.    Deep   Ram       (Ramesh
             Chand)11


       13. On      the      other   hand,    learned     counsel      for

accused has supported the impugned judgments and

orders and sought for dismissal of the appeals.


       14. Heard elaborate arguments of both sides and

perused the record.


       15. The undisputed facts are that complainant is a

Distributor of Finolex Rigid PVC - CPVC pipes and fittings,

and other allied products and accused is one of the

customer of complainant carrying on the business of

paints and hardware. It is also not in dispute that

accused used to purchase GI pipes and other products on

8
  2021 (5) SCC 283
9
  2022 SCC Online SC 1089
10
   Cr.Revision No.19/2021
11
   Cr.M.NO.1059/2022
                            12               CRL.A NO.1977 OF 2021
                                          C/W CRL.A.NO.52 OF 2022
                                              CRL.A.NO.55 OF 2022


credit basis and make payment subsequently. Accused

also not disputed the fact that the subject cheques

belongs to him, drawn on his account, maintained with

his banker and they bear his signature.


     16. Though in the complaint, the complainant has

pleaded   that   the   cheques   were     issued      towards

repayment of the amount reflected therein, during the

course of the examination-in-chief      of PW-1 and also

during his cross-examination, he has stated that the

cheques were issued blank by way of security and they

have been presented for the amount due from the

accused. The accused has also claimed that the entire

amount due is paid and there is no balance due from him

and despite the same, utilising the blank cheques,

complainant has filed these complaints. The accused has

also taken a defence of due discharge of the liability

under the cheques.
                                     13                CRL.A NO.1977 OF 2021
                                                    C/W CRL.A.NO.52 OF 2022
                                                        CRL.A.NO.55 OF 2022


          17. In Sunil Todi Vs the State of Gujarat and Anr

(Sunil Todi)12, the Hon'ble Supreme Court held that

merely labelling a cheque as security would not obviate

its character as instrument designed to meet legally

enforceable debt or liability, once agreement between

parties provided for which money is due and payable.

Cheque furnished as security is covered under the

provisions of Section 138 of N.I Act. In Bir Singh,

referred to supra the Hon'ble Supreme Court held that

the object of Section 138 of N.I Act is to infuse credibility

to negotiable instrument, including cheques in finance

transaction and presumption that the cheque is duly

signed and voluntarily made over to the payee is also

available to post dated and blank cheques.


          18. In       Kalmani   Tex,    referred     to    supra     the

Company          and     Managing    Director   challenged          their

conviction imposed by the High Court by reversing

acquittal given by the trial Court. In that case, the

accused issued cheque for Rs.11.20 lakhs which came to


12
     AIR 2022 SC 147
                                 14              CRL.A NO.1977 OF 2021
                                              C/W CRL.A.NO.52 OF 2022
                                                  CRL.A.NO.55 OF 2022


be dishonoured for insufficient funds. Accused claimed

that blank cheques and stamp papers were issued to help

the   complainant        in    debt    recovery    proceedings.

Appreciating the facts, the Hon'ble Supreme Court held

that Section 139 of N.I Act draws presumption placing

the initial burden on the accused. Looking to the business

relationship between the parties, it held that the trial

Court erred in calling the complainant to prove the

circumstances in which cheque was issued and that the

accused   has   failed    to   rebut   the   presumption       and

therefore, upheld the conviction imposed by the High

Court.

      19. In K.N.Beena, the Hon'ble Suprme Court held

that in the light of provisions of Section 118 and 139 of

N.I. Act, Court has to presume that the cheque had been

issued for discharging a debt or liability. However, it is a

rebuttable presumption and burden is on the accused to

rebut the same by leading evidence and sending reply is

not sufficient to rebut the presumption.
                            15              CRL.A NO.1977 OF 2021
                                         C/W CRL.A.NO.52 OF 2022
                                             CRL.A.NO.55 OF 2022


      20. In Rangappa, the Hon'ble Supreme Court

held that the presumption mandated under Section 139

of N.I. Act includes a presumption that there exist a

legally enforceable debt or liability. However, it is

rebuttable in nature.


      21. In Uttam Ram, the Hon'ble Supreme Court

noted the matters to be established by the complainant

to raise presumption, after which the burden of rebutting

the presumption under Section 118 and 139 of N.I. Act

would be on the accused.


      22. In OBC, the Hon'ble Supreme Court held that

the provisions of Section 138 of N.I. Act are applicable

and presumption under Section 139 of N.I Act is

attracted even to a blank cheque.


      23. In the light of the ratio in the above decisions

and having regard to the fact that the cheques belong to

the accused, drawn on his account and it bears his

signature, presumption under Section 139 of the N.I Act

is operating in favour of the complainant, placing the
                            16              CRL.A NO.1977 OF 2021
                                         C/W CRL.A.NO.52 OF 2022
                                             CRL.A.NO.55 OF 2022


initial burden on the accused to rebut the same, after

which the burden would shift on the complainant to

prove his case.


      24. At the outset it is relevant to note that

complainant has sent legal notice to the accused to his

residential address as well as business address. The one

sent to his residential address is duly served as per

acknowledgement at Ex.P7. However, the one sent to his

business address is returned with an endorsement

"Insufficient address". Accused is not disputing his

residential address as well as the business address to

which the legal notice is sent. In fact in the complaint

also both residential address as well as the business

address of accused is given. The summons sent by the

trial Court is duly served on him on the said address and

he has appeared through counsel before the trial Court

and secured bail. In fact, in the present appeal also both

addresses are given and he is duly served on the same.

Perusal of the acknowledgement at Ex.P7 indicate that he

has personally received the same.
                              17             CRL.A NO.1977 OF 2021
                                          C/W CRL.A.NO.52 OF 2022
                                              CRL.A.NO.55 OF 2022




          25. Under Section 27 of the General Clauses Act

where any central Act or Regulation authorise or requires

any document be served by post, the service shall be

deemed to be effected by properly addressing, prepaying

and posting by registered post a letter containing the

document and unless the contrary is proved, to have

been effected at the time at which the letter would be

delivered in the ordinary course of post. In the light of

this provision, there is a presumption of due service of

legal notice. Despite service of legal notice, the accused

has not chosen to send any reply. Of course, he has also

not paid the amount due under the cheques.


          26. In C.C. Alavi Haji Vs. Palapetty Muhammed

and Anr. (Alavi Haji)13, the Hon'ble Supreme Court held

that the object and purpose of issue of legal notice to the

accused is to enable a honest drawer of cheque to make

payment within the specified time and thereby avoid

prosecution. In case the accused dispute the transaction

or the liability under the cheque, in the reply notice the

13
     (2207) 6 SCC 555
                               18              CRL.A NO.1977 OF 2021
                                            C/W CRL.A.NO.52 OF 2022
                                                CRL.A.NO.55 OF 2022


accused may take such a stand and disclose his defence

at the earliest available opportunity. Of course, there is

no prohibition for the accused to take any defence at the

trial and establish the same. In the present case the

accused has lost the opportunity of coming up with the

specific defence at the earliest available opportunity by

sending reply to the legal notice.


      27. During       cross-examination   of   PW-1,      it   is

suggested that in the subject cheques there is difference

in the ink between the signature and other writing. As

admitted by PW-1, the cheques in question were issued

blank while purchasing goods on credit basis. In fact

during his examination-in-chief PW-1 has fairly deposed

that the cheques were blank and they have been filled up

according   to   the    amount     due   from   the    accused.

Therefore, the fact that there is difference in the ink does

not assume any importance.


      28. It is also suggested to PW-1 that the entire

amount due has been paid, but the complainant has

failed to return the blank cheques. Admittedly, after the
                             19              CRL.A NO.1977 OF 2021
                                          C/W CRL.A.NO.52 OF 2022
                                              CRL.A.NO.55 OF 2022


alleged repayment of entire dues the accused has not

taken any action to intimate the Bank to stop payment or

call upon the complainant to return the blank cheques. At

least he could have sent reply to the complainant to that

effect. During his cross-examination, PW-1 has clarified

that accused used to place order telephonically and after

receipt of material confirm the same. This explains the

fact that in all the invoices, there is no signature of the

accused regarding receipt of material. There is no dispute

regarding the supply and receipt of material, and

therefore this fact does not assume any importance to

doubt the case of complainant.


      29. During the course of his evidence accused who

is examined as DW-1 has reiterated that he has paid the

entire amount due regarding the supply of material by

the complainant. He has stated that in all he has paid a

sum of Rs.1,48,91,064/- through 12 payments and there

is   no   amount   due   from    him.   During   his    cross-

examination he has stated that he is the owner of

accused. Though the accused is referred to as M/s
                               20              CRL.A NO.1977 OF 2021
                                            C/W CRL.A.NO.52 OF 2022
                                                CRL.A.NO.55 OF 2022


Chandrodaya borewells represented by Anil Kumar, it is a

Proprietorship concern. At least accused has not placed

any material on record to show that it is a private or

public company.


      30. Ex.P9 to 36 are the invoices produced by the

complainant regarding the purchase made by accused.

On   this   aspect,   the   accused   has   not   denied      the

suggestion that through these invoices he has purchased

the material, but expressed ignorance. He has also

claimed that sometime he used to pay advance amount,

but conceded that in the examination-in-chief, he has not

deposed to that effect. Accused has claimed that he has

maintained accounts regarding the purchases made from

complainant and payments made in that regard. Though

accused has claimed that he regularly submitted income

tax returns, he has expressed ignorance as to whether in

the said returns, details of payment made to the

complainant is forthcoming or not. He has admitted that

all the payments made by him to the complainant are

through Bank. DW-1 has denied that out of supply for a
                              21             CRL.A NO.1977 OF 2021
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                                              CRL.A.NO.55 OF 2022


sum      of   Rs.1,76,72,678/-    he    has     only       paid

Rs.1,48,91,029/- and for the remaining sum, he has

issued the subject cheques.


        31. Now coming to the suggestions made to the

complainant regarding the payments made. During his

cross-examination, PW-1 has admitted the receipt of

payments as detailed below:

     Exihibits         Date of cheque      Amount in Rs.
Ex.D2                07.02.2019              12,00,000-00
Ex.D3                27.03.2017               4,38,378-00
-                    08.06.2017              12,00,000-00
Ex.D1                15.04.2017              11,13,813-00
                     17.05.2017               4,38,873-00
                     16.06.2017              18,00,000-00
Ex.D1                25.07.2017              10,00,000-00
                     09.10.2017                20,00,000-00
                     14.12.2018                12,00,000-00

Ex.D2                17.04.2018                35,00,000-00
                     06.01.2018                  5,00,000-00
                     22.12.2017                  5,00,000-00

                     07.02.2019                 12,00,000-00
TOTAL                                         1,48,91,064-00


        32. From the above it is evident that the first and

the last payment are one and the same. With regard to

payment of Rs.12 lakhs through Ex.D2, suggestion is

made twice. With this clarification, as per the suggestions
                           22             CRL.A NO.1977 OF 2021
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                                           CRL.A.NO.55 OF 2022


made on behalf of accused himself, still Rs.12 lakhs is

due. A suggestion is also made to PW-1 that the

calculations showed in Ex.P37 is correct. This document

is the extract of account maintained by complainant

regarding the transaction between complainant and

accused from 01.04.2019 to 31.03.2020. As per this, a

sum of Rs.27,81,649/- was still due from the accused

which accounts for the amount due in the subject

cheques. Despite claiming due discharge of the amount

due and also claiming to have maintained accounts, the

accused has failed to produce the account maintained by

it and thereby failed to rebut the presumption under

Section 139 of N.I Act.


      33. Consequently, the burden is not shifted back

to the complainant. Despite the same through the

complaint averments, oral and documentary evidence

placed on record, the complainant has proved that the

amount reflected in the subject cheques were due from

the accused and the cheques were dishonoured for want

of sufficient funds. Despite issue of legal notice, the
                                    23                   CRL.A NO.1977 OF 2021
                                                      C/W CRL.A.NO.52 OF 2022
                                                          CRL.A.NO.55 OF 2022


accused has failed to pay the amount due. At the same

time, at the trial, the accused has failed to prove due

discharge     of   the      amount      due   under      the    cheques.

However, without examining the evidence placed on

record in right perspective, the trial Court has dismissed

the complaint. Therefore, the findings of the trial Court

are perverse calling for interference by this Court.


      34. When the Court comes to the conclusion that

the charge levelled against the accused is proved for the

offence punishable under Section 138 of N.I.Act and the

appeal   is   allowed        by   setting     aside     the    impugned

judgment and order of acquittal, the next question would

be to what punishment accused is liable.


      35. The punishment prescribed for the offence

under Section 138 of the N.I.Act is imprisonment for a

term which may extend to two years or with fine which

may extend to twice the amount of cheque or with both.

The   amount       involved       through       three       cheques       is

Rs.27,81,649,       i.e.,    Rs.12,72,227,        Rs.5,38,720          and
                                 24                CRL.A NO.1977 OF 2021
                                                C/W CRL.A.NO.52 OF 2022
                                                    CRL.A.NO.55 OF 2022


Rs.9,70,702. The matter is of the year 2019. Already,

five years have lapsed.


      36. Taking into consideration all these aspects,

this Court is of the considered opinion that sentencing

accused to pay fine of Rs.16,00,000/-, Rs.7,00,000/- and

Rs.12,00,000/- respectively would be sufficient to meet

the ends of justice. In default of paying the fine

sentencing accused to undergo imprisonment for a period

of one year each would be proportionate to the gravity of

the offence and accordingly, I proceed to pass the

following:

                              ORDER

(i) Appeals filed by the complainant under Section 378(4) of Cr.P.C. are allowed.

(ii) The impugned judgment and order dated 15.09.2021 in C.C.Nos.23855/2019, 23857/2019 and 23860/2019, on the file of XXVII ACMM, Bengaluru are set aside.

(iii) Accused is convicted for the offence punishable under Section 138 of the N.I.Act.

C/W CRL.A.NO.52 OF 2022 CRL.A.NO.55 OF 2022

(iv) In C.C.No.23855/2019, accused is sentenced to pay fine in a sum of Rs. 7,00,000/-.

(v) In C.C.No.23857/2019, accused is sentenced to pay fine in a sum of Rs.16,00,000/-.

(vi) In C.C.No.23860/2019, accused is sentenced to pay fine in a sum of Rs.12,00,000/-.

(vii) In default of payment of fine, accused is sentenced to undergo imprisonment for a period of one year each.

(v) The entire fine amount recovered is ordered to be paid to the complainant by way of compensation.

(vi) The Registry is directed to return the trial Court records along with copy of this judgment to the trial Court.

Sd/-

JUDGE

RR

 
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