Saturday, 16, May, 2026
 
 
 
Expand O P Jindal Global University
 
  
  
 
 
 

Sarfoji vs G.Nithyanandam
2023 Latest Caselaw 4825 Mad

Citation : 2023 Latest Caselaw 4825 Mad
Judgement Date : 26 April, 2023

Madras High Court
Sarfoji vs G.Nithyanandam on 26 April, 2023
                                                                                CRL.A.(MD).No.284 of 2014


                          BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

                                                 DATED: 26.04.2023

                                                         CORAM

                              THE HONOURABLE MR.JUSTICE G.K.ILANTHIRAIYAN

                                           CRL.A.(MD).No.284 of 2014

                     Sarfoji                                           ... Appellant/Complainant


                                                         Vs.


                     G.Nithyanandam                                  ... Respondent/Accused



                     PRAYER : Criminal Appeal filed under Section 378 of Cr.P.C to set
                     aside the Judgment and acquittal order passed by the learned
                     District     Munsif   cum      Judicial   Magistrate,   Papanasam,          dated
                     24.07.2013 in S.T.C.No.908 of 2012 and convict the accused for the
                     offence under Section 138 of the Negotiable Instruments Act.


                                    For Appellant              : Mr.M.Karunanithi


                                    For Respondent             : Mr.Ilayaraja




                    1/6
https://www.mhc.tn.gov.in/judis
                                                                          CRL.A.(MD).No.284 of 2014




                                                    JUDGMENT

This appeal has been preferred as against the order of

acquittal passed in S.T.C.No.908 of 2012 on the file of the learned

District Munsif cum Judicial Magistrate, Papanasam, dated

24.07.2013, thereby dismissing the complaint and acquitted the

respondent for the offence punishable under Section 138 of the

Negotiable Instruments Act.

2. The appellant is the complainant and the respondent

is the accused.

3. The crux of the complaint is that the respondent was

introduced by his friend, one Mariappan. While being so, on

06.09.2011, the respondent borrowed a sum of Rs.3,00,000/- in

order to develop his business. He also assured to return the same

within a period of one month. In order to repay the same, the

respondent issued a cheque for the said sum and the same was

presented for collection. However, it was returned for the reason

'funds insufficient'. After causing statutory notice, the appellant

lodged the complaint.

https://www.mhc.tn.gov.in/judis CRL.A.(MD).No.284 of 2014

4.On the side of the appellant, he examined P.W.1 and

P.W.2 and marked Exs.P.1 to P.4 and on the side of the respondent,

he himself was examined D.W.1 and marked Ex.D.1.

5.On perusal of the oral and documentary evidence, the

trial Court found the respondent not guilty and acquitted him for the

offence punishable under Section 138 of the Negotiable Instruments

Act and dismissed the complaint. Aggrieved by the same, the

present Appeal.

6.The learned counsel appearing for the appellant would

submit that the respondent admitted his signature and also the

issuance of cheque. Therefore, the appellant discharged his initial

burden as contemplated under Section 138 of the Negotiable

Instruments Act. At the same time, the respondent also failed to

rebut the presumption under Sections 118 and 139 of the

Negotiable Instruments Act. Though the appellant failed to mention

the date of borrowal and place of borrowal, when the respondent

admitted the issuance of cheque, he is liable to be punished for the

offence under Section 138 of the Negotiable Instruments Act.

https://www.mhc.tn.gov.in/judis CRL.A.(MD).No.284 of 2014

7.Per contra, the learned counsel appearing for the

respondent would submit that the cheque was not issued for any

legally enforceable debt. In fact, the said Mariappan is not his

friend, who was examined as P.W.2. One Marimuthu along with

Subbaraj were doing timber business. Due to misunderstanding

between them, they separated in the month of September 2010.

The respondent borrowed a sum of Rs.50,000/- and for security

purposes, he issued the cheque. It was misused by the appellant

and initiated the proceedings under Section 138 of the Negotiable

Instruments Act. The respondent categorically rebutted the

presumption and as such, the trial Court rightly dismissed the

complaint.

8.Heard the learned counsel appearing on either side

and perused the materials available on record.

9.On perusal of records revealed that Ex.P.1 was

presented for six times. Further, the appellant was introduced to the

respondent through his friend one Mariappan, who was examined as

P.W.2. According to the respondent, he had a business of timber

along with Marimuthu and Subburaj. Therefore, the said Marimuthu

was not examined by the appellant and he had examined only

Mariappan as P.W.2. The respondent had absolutely no acquaintance

https://www.mhc.tn.gov.in/judis CRL.A.(MD).No.284 of 2014

with P.W.1 and P.W.2. That apart, when unknown person that too

introduced by P.W.2 while borrowing of huge amount to the tune of

Rs.3,00,000/-, the prudent person would receive the other

document as security. The appellant accepted the cheque and no

other documents were produced in order to prove the borrowal and

the cheque was issued only for legally enforceable debt. Whereas,

the respondent produced Ex.D.1 and it revealed that he had a

business transaction with Marimuthu and Subburaj. Therefore, the

respondent categorically rebutted the presumption and the

appellant failed to prove his case beyond any doubt. Therefore, the

trial Court rightly dismissed the complaint and acquitted the

respondent and this Court finds no infirmity or illegality in the order

passed by the Court below. Hence, the Criminal Appeal is dismissed.




                                                                         26.04.2023

                     NCC          : Yes/No
                     Index        : Yes/No
                     Internet     : Yes
                     ps

                     To


The District Munsif cum Judicial Magistrate, Papanasam.

https://www.mhc.tn.gov.in/judis CRL.A.(MD).No.284 of 2014

G.K.ILANTHIRAIYAN, J.

ps

CRL.A.(MD).No.284 of 2014

26.04.2023

https://www.mhc.tn.gov.in/judis

 
Download the LatestLaws.com Mobile App
 
 
Latestlaws Newsletter
 

Publish Your Article

 

Campus Ambassador

 

Media Partner

 

Campus Buzz

 

LatestLaws Guest Court Correspondent

LatestLaws Guest Court Correspondent Apply Now!
 

LatestLaws.com presents: Lexidem Offline Internship Program, 2026

 

LatestLaws.com presents 'Lexidem Online Internship, 2026', Apply Now!

 
 

LatestLaws Partner Event : IJJ

 

LatestLaws Partner Event : Smt. Nirmala Devi Bam Memorial International Moot Court Competition

 
 
Latestlaws Newsletter