Bajaj Mukesh Koshorelal Huf Rep By … vs S.L Sudhakar on 16 April, 2026

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    Bangalore District Court

    Bajaj Mukesh Koshorelal Huf Rep By … vs S.L Sudhakar on 16 April, 2026

    KABC030180192021
    
    
    
    
    IN THE COURT OF XX ADDL.CHIEF JUDICIAL MAGISTRATE
                    AT BENGALURU CITY
    
                  PRESENT: BHOLA PANDIT,
                                                  B.Com.,LL.M.,
                             XX ADDL. C.J.M.
                             Bengaluru.
    
                   Dated this the 16th day of April 2026
    
                           C.C.No. 5963/ 2021
    
    Complainant        :    Bajaj Mukesh Kishorelal Huf
                            Represented by Kartha
                            Mukesh K. Bajaj
                            S/o. Late Kishorelal M Bajaj
                            Age 55 years,
                            No.D 606, Wilson Manor Apartment,
                            13th Cross, Wilson Garden,
                            Bengaluru - 560 027
                            { By Sri.Vijaykumar- Advocate }
                                            Vs.
                          2                  C.C No.5963/ 2021
    
    
    
    
                  1. S.Sudhakar
    Accused   :
                  Age 31 years,
                  S/o. Sri. C.Srinivas
                  Proprietor / Authorized Signatory
                  Maruthi Fabtech,
                  No.41/C, Kebbehalla Road,
                  Sunkadakatte,
                  Vishwaneedam Post,
                  Bangalore - 560 091
                  R/at No.1575, 7th Main Road,
                  Kengeri Upanagara,
                  Near Kalikamba Temple,
                  Kengeri
                  Bangalore - 560 060
    
    
                  2. Maruthi Fabtech
                  No.41/C, Kebbehalla Road,
                  Sunkadakatte,
                  Vishwaneedam Post,
                  Bangalore - 560 091
                  Represented by Proprietor / Authorized
                  Signatory
                                   3                 C.C No.5963/ 2021
    
    
                           { By Sri. Ravikumar K R- Advocate }
    Offence complained :   U/S. 138 of N.I. Act.,
    
    
    Plea of accused    :   Pleaded not guilty.
    
    
    Final Order        :   Accused is Convicted.
    
    
    Date of Order      :   16.04.2026
                                           4                  C.C No.5963/ 2021
    
    
    
    
                               JUDGMENT
    

    The present complaint is filed under section 2(d) read

    with section 200 of code of criminal procedure against the

    SPONSORED

    accused seeking to punish him for the offence punishable

    under section 138 of the Negotiable Instruments Act ( in

    short referred as “N.I. Act“).

    02. The factual matrix of the complaint is summarized as

    under;

    It is alleged in the complaint that, accused No.1 is the

    proprietor of the accused No.2 and being well known to the

    Complainant from past 3 years had approached the

    Complainant during end of July 2020 and had sought for

    hand loan of Rs.7,50,000/- from the Complainant for urgent

    business purposes. Accused No.1 representing accused No.2

    agreed to pay a sum of Rs.75,000/- to the Complainant

    towards interest. Accordingly, the Complainant paid a sum

    of Rs.6,75,000/- to the accused as loan on 05.08.2020 by
    5 C.C No.5963/ 2021

    way of RTGS after deducting the interest payable by the

    accused No.1 and 2. Accordingly, the accused No.1 and 2

    agreed to repay Rs.7,50,000/- (including interest amount) to

    the Complainant. The accused No. 1 & 2, executed one on

    demand promissory note and consideration receipt on

    05.08.2020 for Rs.7,50,000/- in favour of complainant. One

    Sowmya R. also signed on demand promissory note as

    guarantor. Out of hand loan of Rs.7,50,000/-, the accused

    No.1 and 2 have paid a sum of Rs.75,000/- to the

    Complainant and still due a sum of Rs.6,75,000/- towards

    the balance principal amount. After several demands and

    requests, towards discharge of their liability, accused have

    issued following cheques.

    S.NO. CHEQUE NO DATE AMOUNT (Rs) DRAWN ON
    1 000813 05.10.2020 75,000/- HDFC Bank, Satellite Town,
    Bangalore -60
    2 000814 08.12.2020 75,000/- HDFC Bank, Satellite Town,
    Bangalore -60
    3 000816 08.12.2020 75,000/- HDFC Bank, Satellite Town,
    Bangalore -60

    When the Complainant presented all the above said

    cheques for encahsment through his bankers, the said
    6 C.C No.5963/ 2021

    cheques were returned with an endorsements “Funds

    insufficient” on 09.12.2020. Thereafter, complainant got

    issued legal notice on 22.12.2020 to accused persons. The

    notice sent to the accused No.1 and 2 and to the guarantor

    was duly served on 28.12.2020. In-spite of service of

    demand notice, accused neither has paid the cheque amount

    nor has given any reply. Accordingly, this complaint is filed

    within time and has sought to convict the accused by

    granting compensation under section 357 of Code of Criminal

    Procedure double of the cheque amount.

    03. On presentation of the complaint and after verification of

    the averments of the complaint as well as the annexed

    documents, this court took the cognizance for the offence

    punishable under section 138 of NI Act. As per the verdicts of

    the Hon’ble Apex court in the case of Indian Bank Association

    and others V/s Union of India and others, the sworn

    statement of the complainant has been recorded by way of

    examination-in-chief as PW.1 and got marked in all 16
    7 C.C No.5963/ 2021

    documents at Ex.P.1 to 16. After scrutinizing the oral and

    documentary evidence of the complainant prima- facie case

    is made out for the trial. Accordingly, by registering criminal

    case in Register No. III, summons has been issued against

    the accused.

    04. In pursuance of the summons, the accused No.1 has

    appeared before the court through his counsel and filed bail

    application under section 436 of Code of Criminal Procedure,

    the accused has been enlarged on bail. The accusation has

    been read over to the accused, he pleaded not guilty and

    wants to put forth defense. On filing application under

    section 145(2) of NI Act, accused was permitted to cross

    examine PW.1. In spite of granting sufficient time, the

    accused not cross examined PW.1 and not adduced the

    defense evidence. Even the accused deliberately avoided to

    appear before the court to cause obstructions to the

    proceedings. As per the ratio laid down by the Hon’ble High
    8 C.C No.5963/ 2021

    Court of Karnataka, in Crl. Rev. Pet.58/2016 dated

    01.02.2025,, wherein it is held that;

    ” trial court has discretion to dispense with
    recording the accused statement, if accused fails to
    avail the opportunities of explaining to the
    incriminating evidence even after being given
    sufficient time.

    The accused himself not appeared before the court to give

    explanation to the incriminating evidence appeared in the

    trial of the complainant’s case and also not chosen to lead

    any evidence.

    05. Heard the oral argument of counsel of complainant.

    Perused the materials on record.

    06. The points that arise for my consideration are as

    follows;

    POINTS

    1. Does the complainant proves
    beyond reasonable doubts that, the
    accused has issued following cheques.

    9 C.C No.5963/ 2021

                   Sl.   CHEQUE     DATE       AMOUNT (Rs)          DRAWN ON
                   NO      NO
    
                    1    000813   05.10.2020    75,000/-     HDFC Bank, Satellite Town,
                                                                  Bangalore -60
    
                    2    000814   08.12.2020    75,000/-     HDFC Bank, Satellite Town,
                                                                  Bangalore -60
    
                    3    000816   08.12.2020    75,000/-     HDFC Bank, Satellite Town,
                                                                  Bangalore -60
    
    
    
    
                  towards the discharge of his lawful
    

    liability of the complainant and when
    the said cheques were presented for
    encashment, they were returned as
    “Funds insufficient” as per banker’s
    memo and in-spite of issuance of
    demand notice , the accused has failed
    to pay the cheques amount, thereby
    has committed the offence punishable
    under section 138 of NI Act?

    2. What Order or sentence ?

    07. Now my answer to the above points is as follows;

    1. Point No.1: In the affirmative

    2. Point No.2: As per final order

    for the following;

    REASONS

    POINT No.1:

    08. It is the specific case of the complainant that, towards

    discharge the legally enforceable debt, the accused has
    10 C.C No.5963/ 2021

    issued cheques and the said cheques were presented for

    encashment, they were returned unpaid as per banker’s

    memo due to “Funds insufficient”. Accordingly, the

    complainant issued demand notice to the accused and the

    said notice was duly served to the accused on 28.12.2020.

    Accused has not complied the notice. Thus, it is sought to

    prosecute accused and convict him for the offense

    punishable under section 138 of NI Act.

    09. To bring home the guilt of the accused, as per the

    verdicts of the Hon’ble Apex court in the case of Indian Bank

    Association and others V/s Union of India and others , the

    sworn statement of the complainant has been recorded by

    way of examination-in-chief as PW.1. PW.1 has replicated the

    averments of the complaint. The complainant in all has

    produced 22 documents marked at Ex.P.1 to 16. Ex.P.1 to 3

    are the alleged cheques issued by the accused, Ex.P.1(a) to

    3(a) are the signatures of the accused, Ex.P. 4 to 6 are the

    cheque return memos, Ex.P.7 is the demand notice, Ex.P.8
    11 C.C No.5963/ 2021

    to 11 are the postal receipts – 4 Nos., Ex.P.12 to 14 are the

    Postal acknowledgments, Ex.P.15 is the returned postal

    cover, Ex.P15(a) is the notice inside the returned postal cover,

    Ex.P16 is the On demand promissory note and consideration

    receipts, Ex.P16(a) and (b) are the signatures of the accused.

    No.1 on Ex.P16. Learned counsel for the accused not at all

    cross examined the PW.1.

    10. To disprove the case of the complainant and also to

    rebut the statutory presumptions under section 139 of NI Act,

    the accused neither has entered in the witness box nor has

    produced documentary evidence.

    11. As per section 118(a) and 139 of NI Act, it is very clear

    that, when the issuance of cheque drawn from the account of

    the drawer and also signature on the cheque is admitted or

    undisputed, the statutory presumptions shall be drawn in

    favour of the complainant stating that, the accused has

    issued the disputed cheque towards the discharge of his
    12 C.C No.5963/ 2021

    legal debt and that the complainant is the due holder of the

    said cheque. Even in the land mark judgments reported in,

    2010(11) SCC 441, in the case of Rangappa Vs. Mohan,

    wherein it is held that;

    ” Once the cheque relates to the account of the
    accused and he accepts the same and also admits
    his signature on the cheque, then the initial
    presumption under section 139 of NI Act as well as
    under section 118 of NI Act has to be raised in
    favour of the complainant. It is a mandatory
    presumption. But the accused is entitle to rebut
    the same on preponderance of probabilities.”

    In the recent judgment reported in, 2021(5) SCC 283,

    in the case of Kalamani Tex and Another Vs.

    P.Balasubramaniyan, the larger bench of the Hon’ble Apex

    Court, it is held that;

    ” U/s 118 & 139: Once issuance of cheque and
    signature admitted , it is required to presume
    that the cheque was issued as consideration for a
    legally enforceable debt.”

    12. Before to advert the appreciation of oral and

    documentary evidence of respective parties, it is necessary to
    13 C.C No.5963/ 2021

    find out whether the present complaint would meet the

    mandatory provisions of section 138 of NI Act or not.

    13. On perusal of the cheques, banker’s memos, demand

    notice and postal records which are marked at Ex.P.1 to

    P.15 and the present complaint is filed on 11.02.2021. By

    considering these material documents and the presentation

    of complaint, it appears that, the present complaint is filed

    by complying the provisions of section 138(a) to (c) of NI Act.

    14. Further, the accused not given any reply to the demand

    notice at Ex.P.7. Therefore, an inference can be drawn

    against the accused that, he has issued the cheques at Ex.P.1

    to 3 towards discharge of his debt and the same has got

    statutory presumption under section 118(a) of NI Act about

    the issuance of the same by the accused for some

    consideration and which corroborates the oral testimony of

    PW.1 with regard to availing loan of Rs.7,50,000/- (including

    interest of Rs.75,000/-) by the accused. The evidence of PW.1
    14 C.C No.5963/ 2021

    remain unchallenged and un-controverted and also the

    cheques at Ex.P.1 to 3 and signatures there on at Ex.P.1(a)

    to P3 (a) are not disputed. Therefore, the statutory

    presumption under section 139 of NI Act shall be raised in

    favour of the complainant. There is no rebuttal evidence

    produced by the accused either by making cross examination

    of PW.1 or by producing his own evidence before the court.

    Hence, by the evidence of PW.1 coupled with the documents

    at Ex.P.01 to 16, I am of the opinion that, the Complainant

    has proved that, the accused has borrowed hand loan of

    Rs.7,50,000/- from him and towards the discharge of the

    said loan, the accused has issued the cheques at Ex.P.1 to

    P3 for amount of Rs.75,000/- each and the said cheques were

    returned unpaid due to “Funds insufficient” in the account

    of the accused. Therefore, the accused has failed to rebut the

    statutory presumptions under sections 118(a) & 139 of NI Act

    raised in favour of the complainant. Therefore, I answered

    point No.1 in the affirmative.

    15 C.C No.5963/ 2021

    POINT NO.2:

    15. In the case of M/s. Banavathy & Company V/s.

    Mahavir Electro Mech (P). Ltd. And others in Criminal

    Revision Petition No.996/ 2016 the Hon’ble High Court of

    Karnataka pleased to direct all trail court to impose for

    further interest @9% p.a. on the compensation amount. In

    the light of guidelines issued by the Hon’ble High Court of

    Karnataka I proceed to pass the following;

    ORDER

    Acting under section 255 (2) of

    Criminal Procedure Code, accused 1 & 2

    are hereby convicted for the offence

    punishable under section 138 of

    Negotiable Instrument Act and sentenced

    to pay fine of Rs.2,25,000/- (Rupees

    Two Lakhs Twenty Five Thousand only )

    together with future interest @ 9% p.a.

    from the date of default to till the date of

    deposit. In default, accused No.1 shall
    16 C.C No.5963/ 2021

    undergo simple imprisonment for 6(six)

    months.

    Acting under section 357(1) of code

    of criminal procedure, it is ordered that

    an amount of Rs.2,25,000/- (Rupees

    Two Lakhs Twenty Five Thousand only )

    along with interest there from shall be

    paid to the complainant as a

    compensation.

    The bail bond of accused persons

    stands canceled subject to appeal period.

    Supply free copy of judgment to the

    accused persons.

    {Dictated to the stenographer, transcribed and computerized by her, revised corrected
    and then pronounced in the open court on this 16th day of April 2026}.

    (BHOLA PANDIT)
    XX ACJM, Bengaluru.

    17 C.C No.5963/ 2021

    ANNEXURE

    List of witnesses examined on behalf of complainant:

    P.W.1 Mukesh K Bajaj

    List of documents produced on behalf of complainant:

    Ex.P.1 to 3                   Cheques
    Ex.P.1(a) to 3(a)             Signatures of accused No.1
    Ex.P.4 to 6                   Bank endorsements
    Ex.P.7                        Copy of the legal notice
    Ex.P.8 to 11                  Postal receipts
    Ex.P.12 to 14                 Postal acknowledgements
    Ex.P.15                       Unserved postal cover
    Ex.P.15(a)                    Notice inside the postal covers
                                  at Ex. P15
    Ex.P.16                       DP Note and consideration
                                  receipt
    Ex.P.16(a) & (b)              Signature of accused No.1 on
                                  DP Note and consideration
                                  receipt
    

    List of witnesses examined on behalf of accused:

    -Nil-

    List of documents produced on behalf of accused:

    -Nil-

    XX A.C.J.M.,
    Bengaluru.



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