Telangana High Court
D.S.Shridhar vs P.John And Another on 13 December, 2022
Bench: K.Surender
HIGH COURT FOR THE STATE OF TELANGANA
AT HYDERABAD
*****
Criminal Petition No.3492 OF 2022
Between:
D.S Shridhar ... Petitioner
And
P. John & Another ... Respondents
DATE OF JUDGMENT PRONOUNCED: 13.12.2022
Submitted for approval.
THE HON'BLE SRI JUSTICE K.SURENDER
1 Whether Reporters of Local
newspapers may be allowed to Yes/No
see the Judgments?
2 Whether the copies of judgment
may be marked to Law Yes/No
Reporters/Journals
3 Whether Their
Ladyship/Lordship wish to see Yes/No
the fair copy of the Judgment?
_________________
K.SURENDER, J
2
* THE HON'BLE SRI JUSTICE K. SURENDER
+ CRL.P. No. 3492 of 2022
% Dated 13.12.2022
# D.S Shridhar ... Petitioner
And
$ P. John & Another ... Respondents
! Counsel for the Petitioner: Sri. Gujjari. Naveen Kumar
^ Counsel for the Respondents: Sri P.Santosh Kumar Goud
for R1
Sri S.Sudershan,
Addl. Public Prosecutor for
R2
>HEAD NOTE:
? Cases referred
3
THE HONOURABLE SRI JUSTICE K.SURENDER
Criminal Petition No.3492 of 2022
ORDER:
1. Petitioner is questioning the complaint filed under
Section 138 of the Negotiable Instruments Act mainly on the
ground that the reasons given by the banker while returning
the cheque does not confirm to the twin reasons assigned
under Section 138 of the Negotiable Instruments Act for
prosecuting a drawer of the cheque.
2. The case of the complainant is that the complainant
took hand loan of Rs.30.00 lakhs on 05.07.2018 in the house
of the complainant in the presence of witnesses. A cheque
was also issued on the very same day for Rs.30.00 lakhs. The
said cheque was presented for clearance and the same was
returned unpaid on 17.07.2018 for the reason of 'kindly
contact drawer/drawee bank and present again'. Again the
said cheque was presented for clearance, which was returned
on 16.08.2018 for the reason of 'kindly contact
drawer/drawee bank and please present again'.
3. Under Section 138 of the Negotiable Instruments Act,
prosecution can be launched if the cheque is returned unpaid
for the reason of 'insufficient funds' or 'it exceeds
arrangement to be paid'. The Hon'ble Supreme Court held
that apart from two reasons, if the reasons are 'account
closed' and 'payment stopped' by the drawer' are also liable
under Section 138 of the Negotiable Instruments Act.
4. As seen from the cheque, it was printed in the year
2008. The Bank has returned the cheque by specifically
mentioning reason of 'kindly contact drawer/drawee bank
and please present again' which is in the handwriting of the
banker stating that drawer or drawee bank has to be
contacted and then present the cheque.
5. As stated in the complaint, the question of returning the
cheque for 'insufficient funds' does not arise. As seen from
the cheque return memo, the reason of 'funds insufficient' is
number 6. The Bank has returned twice for the reason 19
stating 'kindly contact drawer/drawee bank and please
present again' which was handwritten. When the reason for
returning the cheque does not conform to the twin
requirements mentioned under Section 138 of the Negotiable
Instruments Act or if the account is closed and payment
stopped by drawer as stated by the Hon'ble Supreme Court,
the reason mentioned by the Banker to contact the drawer or
drawee bank and present again will not amount to a reason
for which, the prosecution under Section 138 of the
Negotiable Instruments Act can be launched.
6. If the complainant is aggrieved and in the facts of the
case if an offence of cheating as defined under Section 415 of
IPC is made out, complainant is at liberty to prosecute
accordingly. Since there are no ingredients to launch
prosecution under Section 138 of the Negotiable Instruments
Act, the proceedings against the petitioner are liable to be
quashed.
7. In the result, the proceedings against the petitioner in
CC No.287 of 2018 on the file of Judicial First Class
Magistrate at Zaheerabad, are hereby quashed.
8. Accordingly, the Criminal Petition is allowed.
Miscellaneous applications, pending if any, shall stand closed.
_________________
K.SURENDER, J
Date: 13.12.2022
Note: LR copy to be marked.
B/o.kvs
THE HON'BLE SRI JUSTICE K.SURENDER
Criminal Petition No.3492 of 2022
Date: 13.12.2022
kvs
