Telangana High Court
M/S. Jai Sridevi Homes P Limited vs M/S. Pavari Constructions on 31 July, 2024
THE HONOURABLE SRI JUSTICE E. V. VENUGOPAL
CRIMINAL APPEAL No.481 of 2018
JUDGMENT:
This appeal is preferred by the appellant against the
Judgment, dated 25.04.2016 in C.C.No.4 of 2016 on the
file of the learned VIII Special Magistrate, Hyderabad (for
short, "the trial Court") wherein and whereunder the
learned Magistrate acquitted respondent Nos.1 and
2/accused Nos.1 and 2 under Section 255 (1) of Cr.P.C for
the offence punishable under Section 138 of the Negotiable
Instruments Act (for short, "the NI Act").
2. Heard Mr. V. Srinivas, learned counsel representing
Mr. Maddela Ravinder, learned counsel for the appellant,
Mr. V. S. R. M. V. Prasad, learned counsel representing
Mr. Siva Prasad Allaparthi, learned counsel for the
unofficial respondent Nos.1 and 2 and Smt. S. Madhavi,
learned Assistant Public Prosecutor appearing on behalf of
respondent No.3-State.
3. The brief facts of the case are that the Accused No.1
is a Proprietary Firm. The Accused No.2 is the Proprietor
of the Accused No.1 Firm. The Accused No.2 has obtained
an amount of Rs.20,00,000/- from the Complainant
through Cheque Nos.005501 & 005502, dated:
24/11/2007 by way of hand loan and agreed to repay the
said amount. Out of the said amount, the Accused repaid
an amount of Rs.5,00,000/- to the Complainant through
Cheque and also issued Cheques for discharging the
balance amount of Rs.15,00,000/- viz., Cheque Nos.
351136, 351138 & 351139. The Cheque bearing
No.351136 was presented by the Complainant for
collection, but the same was returned. It is stated that
though the Accused promised to pay the amount covered
by the said Cheque, the Accused failed to pay the said
amount till date. The other Two Cheques bearing
Nos.351138 & 351139 issued by the Accused for an
amount of Rs.5,00,000/- Each, drawn on State Bank of
India, Temple Road Branch, Kukatpally, Hyderabad, were
presented for collection by the Complainant on
27/04/2009 with its Banker i.e., Axis Bank Ltd., Banjara
Hills, Hyderabad, but the said Cheques were returned
dishonoured by the Accused Banker with an endorsement
"Account Closed" vide Cheque Return Memo, dated:
28/04/2009.
4. After dishonour of the cheques, the Complainant got
issued a Legal Notice, dated: 25/05/2009 to the Accused
through Registered Post with Acknowledgment Due, calling
upon them to repay the amount covered by the said two
cheques within a period of 15 days from the date of receipt
of this notice. The said Notice was received by the Accused.
Thereafter, the accused contacted the Executive Director of
the Complainant Company and requested for some time for
paying the amount as demanded under the notice, but the
Accused failed to pay the amount as demanded in the legal
notice or as promised by him within 15 days or thereafter.
Hence the Complaint.
5. During the course of trial, on behalf of the
complainant, Pw.1 was examined and got marked as
Exs.P.1 to P.6.
6. The trial Court vide impugned judgment found the
accused not guilty for the offence under Section 138 of the
NI Act and acquitted them. Aggrieved by the same, the
appellant, who is the complainant herein filed the present
appeal.
7. This Court upon taking into consideration the
decisions passed by the Hon'ble Supreme Court in
Damodar S. Prabhu Vs. Sayed Babalal 1, R. Vijayan
Vs. Baby 2, S.R. Sunil & Company Vs. D.
Srinivasavaradan 3, Mainuddin Abdul Sattar Shaikh
Vs. Vijay D. Salvi 4, Somnath Sarkar Vs. Utpal Basu
Mallick 5 and Gimpex (P) Ltd v. Manoj Goel6 wherein
it was held that, the object of incorporating the penal
provisions under Sections 138 to 142 of the NI Act is not
only to provide a strong criminal remedy to deter the high
incidence of dishonour of cheques but a remedy of punitive
nature and observed that where there is a conviction, there
should be a consequential levy of fine amount sufficient to
cover the cheque amount along with simple interest
2010 (5) SCC 663
(2012) 1 SCC 260
(2014) 16 SCC 32
(2015) 9 SCC 622
2013 (16) SCC 465
(2022) 11 SCC 705
thereon at a fixed rate of 9% per annum and held that the
interest should be followed by an award of such sum as
compensation from the fine amount.
8. The respondent Nos.1 and 2 are directed to deposit
the fine amount of double the cheque amount to the credit
of the C.C.No.4 of 2016 on the file of the learned VIII
Special Magistrate, Hyderabad within a period of Six (06)
months from today. On such deposit, the appellant is
entitled to withdraw the same upon filing an appropriate
application before the trial Court.
9. If the respondent Nos.1 and 2 fails to comply with the
aforesaid direction, they shall suffer simple imprisonment
for a period of one (01) year.
10. Accordingly, the Criminal Appeal is allowed.
Miscellaneous Petitions, pending if any, shall stand
closed.
____________________________
JUSTICE E.V.VENUGOPAL
Dated:31.07.2024
TU
