Rajath Dwarka vs Ashwath K on 23 March, 2026

    0
    53
    ADVERTISEMENT

    Bangalore District Court

    Rajath Dwarka vs Ashwath K on 23 March, 2026

                                                 CC.No.21940/2017
    
    
    
    
    KABC030948962017
    
    
    
    
                                Presented on : 01-09-2017
                                Registered on : 01-09-2017
                                Decided on     : 23-03-2026
                       Duration : 8 years, 6 months, 22 days
    
    
         IN THE COURT OF THE XVI ADDITIONAL CHIEF
             JUDICIAL MAGISTRATE, BENGALURU CITY
    
             Dated: This the 23rd day of March 2026
    
              Present: Smt.Tejaswini K.M., B.A.L.LL.M,
                        XVI Addl.C.J.M., Bengaluru City.
    
                          CC. No.21940/2017
    
             Sri.Rajath Dwarka
             S/o Late.Munirathnam Naidu
             Aged about 41 years
             R/at No.2062, 7th Main, 2nd Stage,
             Kumarswamy Layout,
             Bangalore - 560078.
    
                                       ....Complainant
    
               (By Sri R.S., Advocate)
    
                                Versus
                        2                           C.C.21940/2017
    
    
    
    
             Sri.Ashwath Y.K
             S/o Late.Kempanna
             Ananya Farms
             Yachenahalli, Bannur Hobli,
             T.Narasipura Taluk,
             Mysore District - 571101.
    
                                           .... Accused
    
              (By Sri.,B.R., Advocate)
    
    
    
    Offence complained :        U/Sec.138 of Negotiable
                                Instrument Act.
    
    
    Date of commencement
    of evidence                     : 31.08.2017
    
    Date of closing evidence        : 19.11.2025
    
    Opinion of the Judge            : Accused found guilty
    
    Offence complained              :      U/Sec.138          of
                                    Negotiable
                                      Instrument Act.
    
    Opinion of the Judge       : Accused found guilty
                         3                         C.C.21940/2017
    
    
    
    
                            JUDGMENT
    

    This case is registered against the accused for the

    offence punishable U/s 138 of Negotiable Instruments

    Act.

    2. Factual matrix of the complainant’s case is as

    under:

    It is stated that the complainant knows the accused

    and they are close friends. The accused by profession is

    an Artist/Actor and also proprietor for Ananya Farms

    situated at Yachenahalli, Bannur Hobli, T.Narasipura

    Taluk, Mysore District. The accused requested the

    complainant for financial assistance to the tune of

    Rs.15,00,000/- at the end of October 2016 for the purpose

    of development of the said farm and also assured to take

    the complainant as one of the partners of the Ananya

    Farms. The complainant consented for the same and

    agreed to pay Rs.12,50,000/-. The complainant has paid a

    sum of Rs.12,50,000/- by way of cash on 08.11.2016.

    Thereafter, the complainant requested the accused to
    4 C.C.21940/2017

    execute the partnership deed and visited the farm

    several times, but the accused postponed it.

    3. Thereafter, the complainant demanded the

    accused to refund above amount with nominal interest.

    Accordingly, the accused has issued a cheque bearing

    No.262976 dated 04.04.2017 for Rs.10,00,000/-, drawn on

    State Bank of Mysore, J.C.Road Branch, Bangalore in

    favour of the complainant and promised to pay

    remaining amount of Rs.2,50,000/- with interest within a

    short period. As per instructions of the accused, the

    complainant has presented the cheque before the bank,

    it got dishonoured for the reason ‘funds insufficient’ vide

    memo dated 27.06.2017. Therefore, the complainant got

    issued legal notice on 24.07.2017 demanding the accused

    to make payment amount within 15 days and it has been

    returned with a shara ‘nobody was available at home to

    receive the notice’ on 03.08.2017. However, the accused

    has not paid the cheque amount and not replied to the

    demand notice. Hence the complainant has constrained

    to file the present complaint.

    4. After receiving the complaint, this court has

    meticulously gone through the documents and affidavit
    5 C.C.21940/2017

    filed along with it and then took cognizance of the

    offence punishable U/sec.138 of Negotiable Instruments

    Act and ordered for registration of the compliant as

    P.C.R.

    5. Sworn statement of the complainant was

    recorded and marked 17 documents as Ex.C-1 to C-17. As

    there were sufficient materials to constitute the offence,

    this court has proceeded to pass an order for issuing

    process against the accused.

    6. In pursuance of summons, accused has appeared

    through his counsel and applied for bail. He was

    enlarged on bail. Then the substance of accusation was

    read over to the accused in the language known to him,

    for which he pleaded not guilty.

    7. As per the direction of Hon’ble supreme court in

    “Indian Bank Association V/s Union of India and

    others reported in (2014)(5) SCC 590, this court treated

    the sworn statement of the complainant as complainant

    evidence and posted matter for cross-examination of

    PW.1. The counsel for the accused has fully cross-

    examined PW.1. Thereafter the complainant closed his
    6 C.C.21940/2017

    side of evidence. During cross-examination of PW.1 Ex.D1

    got marked by way of confrontation.

    8. The statement of accused as contemplated under

    the provisions of Section 313 of Cr.P.C has been recorded

    vide order dated 24.06.2023 and the incriminating

    evidence as such forthcoming against the accused in the

    evidence of PW.1 and the documents has been read over

    and explained to the accused in the language known to

    him. He denied all incriminating evidence.

    9. In order to substantiate him defense, the

    accused got himself examined as DW.1 and got marked

    Ex.D2 to D13 and he had been cross-examined by the

    learned counsel for the complainant. During cross-

    examination of DW.1 Ex.C18 to C20 are got marked by

    way of confrontation. Witness by name Mr.Ashok

    Kulakarni has been examined as DW.2 and he has been

    duly cross examined by the learned counsel for the

    complainant. Branch manager SBI is examined as DW3.

    10. I have heard the arguments of the learned

    counsel for both the side and perused the oral and the

    documentary evidence placed on record.
    7 C.C.21940/2017

    11. Points that arise for my consideration are as

    under:

    1. Whether the complainant proves that the
    accused towards discharge of his liability

    issued a cheque bearing No.262972 dated

    04.04.2017 for Rs.10,00,000/-, drawn on

    State Bank of Mysore, J C Road Branch,

    Bangalore in favour of complainant, on

    presentation of the same for encashment,

    it was dishonored for “funds insufficient” in

    the account maintained by the accused,

    then in-spite of issuing demand notice to

    the Accused and in complying with

    statutory requirement under Negotiable

    Instrument Act, Accused did not repay the

    cheque amount, thereby he has committed

    an offence punishable U/s 138 of

    Negotiable Instruments Act?

    2. What Order?

    12. My Answer to above points are as under:-

                Point No.I      :- In the Affirmative,
                         8                         C.C.21940/2017
    
                 Point No.II    :- As per the final order for
                                   the following....
                            REASONS
    
    

    13. POINT NO.I:- The Defense of the accused is as

    follows

    1. He resides with his family in Yachenahalli, Mysore,

    where he operates a dairy farm in partnership with Mr.

    D.P. Ashok Kulkarni. He has known the complainant since

    2008. The farm maintains approximately 80 cows and

    produces around 600 to 800 liters of milk per day. A

    separate bank account is maintained for the dairy

    business.

    2. In 2013, he borrowed a loan of Rs 2 lakhs from the

    complainant, which was fully repaid in 2018. The cheque

    in question was issued in 2013 as security for that loan.

    3. It is further contended that he is working in

    cinemas as well as television serials. He has taken the

    cheque book pertaining to the disputed cheque in 2013.

    He has repaid Rs.2 lakhs to the complainant on

    12.07.2018. That time he did not know about this

    complaint. After receiving warrant, he got to know about

    this case.

    9 C.C.21940/2017

    4. Since the complainant did not get an opportunity

    to act in cinemas and serials like him ie accused, the

    complainant became enraged and filed this false case.

    5. After repayment of the loan, despite of his request,

    the complainant has not returned the security cheque

    and as there is no legally enforceable debt, compliant is

    not maintainable.

    6. The complainant convened a press meet and

    attempted to defame him, and by creating such pressure,

    he is trying to extort money from him.

    7. He has repaid interest to the complainant by way of

    cash through partner Mr.Ashok Kulkarni, he never

    borrowed Rs.12,50,000/- as alleged in this complaint.

    8. Except the signature on the cheque he has not

    filled the details in it.

    9. Cheque limit is Rs.5 lakhs but, it has presented for

    an amount exceeding Rs.5 lakhs, as such complaint is not

    maintainable.

    10. The complainant has managed to ensure that the

    legal notice was not served on him by colluding with the

    postal authorities.

    10 C.C.21940/2017

    Hence, on these grounds, accused prays to acquit

    him from this case.

    14. Negotiable Instruments Act provides for some

    presumption in favour of the complainant i.e., Section

    118 reads as here: – “That every negotiable instrument

    was made or drawn for consideration and that every

    such instrument when it has been accepted, endorsed,

    negotiated or transferred was accepted, endorsed,

    negotiated or transferred for consideration”.

    15. Further Sec 139 of the Negotiable Instruments

    Act provides for presumption in favour of a holder. It

    reads as here: – “It shall be presumed, unless the contrary

    is proved, that the holder of a cheque received the

    cheque, of the nature referred to in sec 138, for the

    discharge, in whole or in part, or any debt or other

    liability.”

    16. Combined reading of above said sections raises

    a presumption in favour of the holder of the cheque that

    he has received the same for discharge in whole or in

    part of any debt or other liability. However, it is settled

    principle of law that the presumption available u/s 139 NI
    11 C.C.21940/2017

    Act can be rebutted by the accused by raising a probable

    defense.

    17. The complainant has reiterated the contents of

    the complaint in his chief-examination. PW1. got marked

    Ex.C1 to C20. He has produced the cheque issued by

    accused and the same is marked as Ex.C-1, the signature

    of the accused is marked as Ex.C-1(a), copy of bank

    memo is marked as Ex.C-2, copy of demand notice

    dated:24.07.2017 is marked as Ex.C-3, copy of postal

    receipt is marked as Ex.C-4, copy of returned notice is

    marked as Ex.C-5, postal cover is marked as Ex.C-6, postal

    receipt is marked as Ex.C-7, copy of postal

    acknowledgment is marked as Ex.C-8, copy of statement

    of account is marked as Ex.C-9, copy of Income Tax

    Return Verification Form is marked as Ex.C-10, C/c of

    complaint in CC.No.700/2018 is marked as Ex.C-11, C/c of

    order sheet in PCR No.94/2018 is marked as Ex.C-12, C/c

    of Order Sheet in CC.No.742/2019 is marked as Ex.C-13,

    C/c of complaint PCR No.167/2019 is marked as Ex.C-14,

    copy of affidavit is marked as Ex.C-15, C/c of cheque is

    marked as Ex.C16, copy of complaint in CC.No.8644/2021

    is marked as Ex.C-17, C/c of complaint in PCR No.7/2022
    12 C.C.21940/2017

    is marked as Ex.C-18, C/c of Roznama and complaint in

    PCR No.82/2022 are marked as Ex.C-19 and copy of

    private complaint is marked as Ex.C-20. PW.1 has been

    cross-examined by the counsel for the accused.

    18. Percontra, the accused has also stepped into

    witness box and orally deposed about his defense as

    stated supra and he has been cross-examined by the

    counsel for the complainant.

    19. Accused has also examined one witness by

    name Mr.Ashok Kulkarni as DW.2 and he has deposed in

    his chief examination that he is one of the partners of the

    Dairy farm run by accused from 2010. Himself and the

    family of accused are residing in the farm’s address. The

    accused is acting cinemas and serials. He knows the

    complainant since prior to 2010. In 2013 the accused has

    borrowed Rs.2 lakhs from the complainant and repaid it

    in 2018, in between he has paid interest to the

    complainant through account. In 2013 the complainant

    has taken the a cheque for security from the accused and

    despite of repayment of loan, the complainant has

    presented the said cheque and filed this case. He has

    been cross-examined by the counsel for the complainant.
    13 C.C.21940/2017

    20. The accused filed an application to summon

    the bank manager, which was allowed vide order dated

    23.07.2025. Pursuant thereto, the Assistant Manager of

    the Bengaluru City Branch of SBI appeared before the

    Court and he was examined as DW.3. In his evidence,

    DW.3 deposed that although the cheque mentions it as a

    multicity cheque payable up to RS 5 lakhs, even if it is

    presented for an amount exceeding RS 5 lakhs, the bank

    may still process it after contacting the customer for

    confirmation.

    21. With the leave of the Court, the counsel for

    the accused treated the witness as hostile and cross-

    examined him. During cross-examination, DW.3 denied

    the suggestion that a cheque with a limit of RS 5 lakhs, if

    presented for RS10 lakhs, would not be permitted. He

    further deposed that if a cheque is presented for

    encashment exceeding RS 5 lakhs, it is not maintainable

    as such, however, the amount can be transferred directly

    to the account.

    22. I have meticulously gone through pleadings,

    evidence placed on record and given my anxious

    consideration to the arguments canvassed by both side.
    14 C.C.21940/2017

    During arguments, the counsel for the complainant

    submitted that the accused has failed to establish his

    defence and he has taken inconsistent stands regarding

    the issuance of the cheque in the present case as well as

    in the private complaint filed by him, marked as Ex.P20. It

    was further contended that the accused did not reply to

    the legal notice. The counsel argued that the amount

    paid by the accused during the pendency of the case

    itself indicates the existence of a legally enforceable debt.

    It was also submitted that the accused has a habitual

    practice of issuing cheques to various persons, as a result

    of which multiple cheque bounce cases have been filed

    against him. Since the accused has admitted his

    signature on the cheque, the initial presumption

    operates against him, and he is required to rebut the

    same. However, the accused has failed to discharge this

    burden in the present case. Accordingly, the

    complainant’s counsel prayed for conviction of the

    accused.

    23. Per contra, the counsel for the accused argued

    that the accused is running a dairy farm where he

    maintains a large number of cows and earns substantial
    15 C.C.21940/2017

    income. It was further contended that the accused is also

    engaged in acting in cinema and television serials and is

    a well-known public figure with sufficient earnings. The

    counsel submitted that despite repayment of Rs 2 lakhs

    by the accused, the complainant has suppressed this

    material fact in the sworn statement, and therefore an

    adverse inference must be drawn against him. It was

    further argued that the income tax return documents

    produced by the complainant are fabricated for the

    purpose of the case. According to the defence, the

    auditor through whom the said ITRs were allegedly filed

    does not exist, and there are material inconsistencies in

    the evidence of PW.1 regarding the auditor’s details,

    address, and the ITR documents. It was also contended

    that the complaint itself is not maintainable, as it pertains

    to a time-barred debt allegedly advanced in 2013.

    24. The counsel for the accused further argued that

    the cheque itself carries a ceiling limit of Rs5 lakhs, and

    therefore it could not have been presented for Rs10

    lakhs. It was contended that the evidence of the bank

    manager examined as DW.3 is not admissible, as no prior
    16 C.C.21940/2017

    consent was obtained from the accused to process such

    a cheque, as stated in evidence of DW3.

    25. He further submitted that several persons are

    employed at the dairy farm, where around 100 cows are

    maintained, and the entire family of the accused resides

    at the said premises. Despite this, the complainant

    ensured that the legal notice was not served on the

    accused by colluding with the postal authorities and

    caused a postal shara to be made stating that the

    accused was not available for service. On these grounds,

    it was argued that the complainant has failed to comply

    with the mandatory requirements under Section 138(b)

    of the NI Act regarding issuance and service of legal

    notice, and therefore, the complaint is not maintainable.

    26. Further he argued that purpose for which loan

    is alleged to be given is for development for the farm.

    However, said farm is fully developed and there is no

    proof for payment of Rs.12.5 lakhs to the accused and

    without the consent of another partner, the accused

    alone cannot take the complainant partner to the Ananya

    Farm, as such the said story is created by the

    complainant. He further argued that the cheque in
    17 C.C.21940/2017

    question is from the cheque book obtained in 2013, and

    since the accused has used more than four cheque books

    after that period, the possibility of issuing the disputed

    cheque in 2017 does not arise. This indicates that the

    security cheque given by the accused in 2013 was

    misused, despite the repayment of Rs 2 lakhs along with

    interest. On this grounds, he prayed for the acquittal of

    the accused.

    27. With this back drop lets proceed to appreciate

    the evidence. On perusal of the entire evidence placed on

    record, following are admitted facts,

    1 The acquaintance between the parties is not in

    dispute.

    2 It is also an admitted fact that the accused is

    running dairy farm by name Ananya Farm to which

    himself and DW.2 are the partners and the accused is

    also acting in cinemas and serials .

    3. The disputed cheque belongs to the account

    of the accused and it bears his signature. Though

    accused contends that the details in the cheque are not

    filled by him, he admits his signature on the cheque and
    18 C.C.21940/2017

    he admits he himself has issued the cheque to the

    complainant.

    28. Therefore, it is prima-facie proved by the

    complainant that accused has issued the cheque

    maintained by his account in his name and it bears his

    signature.

    29. Therefore, initial presumption U/Sec.118 and

    139 of NI Act has to be drawn in favour of the

    complainant as the Honorable Supreme Court of India in

    Triyambak S Hegde v Sripad” (2022) 1 SCC 742 while

    relying upon the the constitution bench judgment of

    Basalingappa v Mudibasappa (2019) 5 SCC 418, under

    para 14 of its judgment reiterated that

    “once the cheque was issued and that the
    signatures are upon the cheque are accepted by
    the accused, the presumptions undee Sec 118 and
    139 of the NI Act arise against the accused. That is,
    unless the contrary is proved, it shall be presumed
    that the cheques in question were drawn by the
    accused for a consideration and that the
    complainant had received the cheque in question
    in discharge of debt/liability from the accused.”

    30. Therefore, as per Sec.118 and 139 of NI Act

    initial presumption has to drawn infavour of the
    19 C.C.21940/2017

    complainant that cheque was issued in discharge of

    legally enforceable debt. The burden lies on the accused

    to rebut the said initial presumption on the scale of

    preponderance of probabilities.

    31. The case of the complainant is that he has lent

    loan of rs.12.5 lakhs to the accused by way of cash on

    18.11.2016 and towards partial repayment of Rs.10 lakhs,

    the accused has issued the disputed cheque, but same

    got dishonoured for the reason ‘funds insufficient’.

    Despite of issuance of legal notice, the accused has not

    repaid the cheque amount. Hence this case.

    32. In his cross-examination the complainant has

    deposed in consonance with his case, about issuance of

    Rs 12.5 lakhs to the accused. During cross-examination

    dated 08.11.2019 at para No.3, PW.1 has deposed that he

    has given 12.5 lakhs by way of cash, but he has not taken

    any receipt from the accused in this regard. Since the

    accused sought loan by way of cash, he has given it by

    way of cash. He deposed that he has withdrawn the

    amount from his Canara Bank and he has produced his

    account statement in this regard. He denied that he did

    not has financial capacity to pay Rs.12.5 lakhs to the
    20 C.C.21940/2017

    accused. He specifically deposed that he had Rs.12.50

    thousand with him as on 07.11.2016.

    33. To substantiate this fact the complainant has

    produced his account statement marked at Ex.C9. On

    perusal of the same it is evident that on 17.11.2016 there

    was outstanding balance of Rs.12,77,976/- in the account

    of the complainant, he has withdrawn it through self

    cheque. Thus by producing Ex.C9 the complainant has

    proved his financial capacity to lend the alleged loan to

    the accused. Therefore, various questions asked by the

    counsel for the accused regarding the occupation of

    PW.1, his income tax returns documents, the account

    details of the accused etc holds no water.

    34. AIR 2023 SC 5018 in between Rajesh Jain V/s

    Ajay Singh, Apex court held that

    ” 31. Presumption, on the other hand, literally means “taking
    as true without examination or proof”. In Kumar Exports v. Sharma
    Exports
    , this Court referred to presumption as “devices by use of
    which courts are enabled and entitled to pronounce on an issue
    notwithstanding that there is no evidence or insufficient evidence.”

    “62. The fundamental error in the approach lies in the fact
    that the High Court has questioned the want of evidence on part of
    the complainant in order to support his allegation of having
    extended loan to the accused, when it ought to have instead
    concerned itself with the case set up by the accused and whether
    21 C.C.21940/2017

    he had discharged his evidential burden by proving that there
    existed no debt/liability at the time of issuance of cheque..”

    35. Principle laid down in above case law aptly

    applicable to present case. Since the complainant enjoys

    the initial presumption U/Sec.118 of NI Act i.e. cheque is

    drawn for consideration, the Court shall presume that

    the consideration has been passed to the accused.

    Unless and until the accused rebut it on the scale of

    preponderance of probabilities, the complainant need to

    be called upon to prove his case further. The only

    defense taken by the accused is that he has borrowed

    loan of Rs.2 lakhs in 2013 and it was repaid in 2018 with

    interest. Despite of the same, the security cheque was

    given in 2013 has been misused by the complainant.

    36. During his evidence, accused has specifically

    taken a contention that on 12.07.2018, he has transferred

    Rs.2 lakhs from his account to the account of

    complainant.

    37. Firstly, to prove that he had borrowed Rs.2

    lakhs from the complainant in 2013, no iota of evidence is

    produced before the Court. Indeed in the cross-

    examination of the complainant he has denied that he
    22 C.C.21940/2017

    had given loan of Rs.2 lakhs to the accused in 2013 and

    received security cheque for said loan by the accused.

    Therefore, the burden completely rests on the accused to

    prove his defense. Except his self interested testimony,

    no admissible evidence is produced before the Court to

    prove the alleged loan transaction of Rs.2 lakhs of 2013.

    Though DW.2 ie one of the partners of the accused has

    supported the case, it is worth mentioning here that he is

    one of the partners of Ananya Farms with the accused.

    Therefore, he is interested witness, his oral evidence

    itself is not suffice to believe the version of the accused.

    38. Secondly, the accused contends that from 2013

    to 2018, he has paid interest to the complainant. To

    substantiate this fact, he has examined DW.2 who has

    deposed that he has transferred interest amount from

    his account to the account of the complainant. Ex.D1 is

    the account statement standing in the name of Mr.Ashok

    Kulkarni D.P i.e. DW.2, on perusal of the same it appears

    that he has transferred Rs.15,500/- through cheque on

    21.06.2014 and 12.04.2014. Except 2 entries, in Ex.D1,

    there is no other transaction which would goes to shows

    that from 2013 to 2018, the accused has paid interest to
    23 C.C.21940/2017

    the loan of Rs.2 lakhs through the account of DW.2. It is

    not forthcoming what is the rate of interest agreed upon

    between the parties. Except in 2014 April and June, no

    further interest paid to the complainant by the accused in

    this regard.

    39. The counsel for the accused has vehemently

    argued that accused is busiest actor and famous public

    figure, he runs a dairy farm wherein he maintained

    around 100 cows, through which accused gets 600 to 600

    liters milk every day. As such the accused has sufficient

    income and there was no reason to get loan of Rs.12.5

    lakhs from the complainant as alleged to develop the

    business.

    40. It is material to note here that the complainant

    has stated that by assuring that accused will take him as

    one of the partners of the Ananya Farm, for the

    development on the said farm, the accused has received

    Rs.12.5 lakhs on 08.11.2016. The accused has produced

    Ex.D8 account statement which stands in the name of

    Ananya Farm. On perusal of the same it appears that

    from 01.06.2016 to 30.06.2016 there is hardly balance of

    Rs.75,315/- and not more than that. The said account
    24 C.C.21940/2017

    statement reflects the financial stability of the accused

    and the said Ananya Farm.

    41. In the evidence of accused as well as DW.2, they

    have deposed that in their dairy farm, they have go-

    dawn, feed store, residential house, got 80 High breed

    Cows, advance technology milk extract machine though

    which they produce around 600 to 800 liters of milk

    every day. During cross-examination of PW.1 dated

    31.01.2019 at para No.2 counsel for the accused has

    suggested that accused has acted in more than 200

    cinemas and PW.1 pleaded ignorance to the said

    suggestion. He further suggested that per day accused

    get remuneration of 20 to 25 thousand and PW.1 pleaded

    ignorance to the said suggestion. Further he suggested

    that accused owns more than 100 Jersey cows, employs

    15 laborers, and possesses a tractor and tiller and after

    deducting entire expenses, the accused gets an income

    of Rs.2 to 3 lakhs from the said farm and PW.1 denied for

    the same. The counsel further suggested to PW.1 that

    the dairy farm and house worth of Rs.7 to 8 crores and

    PW.1 deposed it might worth of Rs.55 lakhs.
    25 C.C.21940/2017

    42. Therefore, by putting such suggestions to PW.1,

    the counsel for the accused attempted to create an

    impression before the Court that the accused is

    financially sound and that his dairy business is profitable,

    therefore there was no need and necessity of borrowing

    any loan from the complainant. However, in the absence

    of any cogent or documentary evidence to substantiate

    these suggestions, they remain as mere suggestions

    without evidentiary value.

    43. Accused ought to have produced his Bank

    statements showing regular income of Dairy, Ownership

    documents of land, buildings, and dairy infrastructure,

    livestock details , Milk sale records, salary registers of 15

    labours, Payment receipts for acting remuneration etc to

    prove the above suggestions. The burden lies on the

    accused to prove his defence as per sec 101 and 102 of

    Indian Evidence Act, with reliable evidence and without

    such proof, the Court will treat those claims as

    unsubstantiated assertions.

    44. Further it is significant to mention here that if at

    all the accused was getting such huge remuneration and

    financially stable, then why he took nearly five years,
    26 C.C.21940/2017

    from 2013 to 2018, to repay the allegedly modest loan of

    Rs. 2 lakhs to the complainant. The significant delay in

    repayment of such a relatively small sum itself indicates

    that the accused was not financially capable.

    45. Further only after filing this case by the

    complainant, the accused has transferred Rs.2 lakhs from

    his account to the complainant’s account and the accused

    contends that he did not not know about pendency of

    this case while transferring of Rs.2 lakhs to the

    complainant. The counsel for the accused has argued

    that the complainant has intentionally suppressed the

    fact that the accused has paid Rs.2 lakhs to his account,

    in the evidence affidavit and complaint. It is pertinent to

    note here that this complaint is filed on 28.08.2017 and

    the sworn statement has been recorded on 31.08.2017.

    The accused has transferred Rs.2 lakhs to the

    complainant on 12.07.2018 as per Ex.D10 account

    statement. Therefore, after this complaint is filed and the

    sworn statement is recorded, the accused has

    transferred the said Rs.2 lakhs to the complainant.

    Therefore there is no occasion for the complainant to

    plead about the said Rs.2 lakhs in the complaint or in his
    27 C.C.21940/2017

    sworn statement. After appearance of the accused before

    the Court the said sworn statement itself is treated as

    chief-examination of PW.1. Therefore, it is not possible to

    the complainant to plead about said Rs.2 lakhs in the

    present case and same cannot be construed as

    suppression of material facts as argued by the counsel

    for the accused.

    46. In so far as contention of the accused that

    without knowing the fact that this complaint has been

    filed, he has transferred Rs.2 lakhs loan is concerned, this

    Court has noticed that accused has filed private

    complaint against the complainant for allegedly giving

    false press statement which would defame him as per

    Ex.P20. On perusal of averments of this complaint at

    Ex.P20, the accused has alleged that through

    complainant, he met a person by name Mr.Raju and from

    him ,he has borrowed Rs.2 lakhs and it was repaid to the

    said person on 16.11.2017.

    47. It is further alleged in paragraph 8 that, in July

    2018, the complainant approached the accused seeking

    repayment of Rs 2 lakhs. It is also stated that the

    complainant had filed a cheque bounce case against the
    28 C.C.21940/2017

    accused and demanded payment of Rs 2 lakhs for

    withdrawing the said case. At that time, the accused

    agreed to repay Rs 2 lakhs on or before 10.06.2018 and

    issued two separate blank cheques drawn on his HDFC

    Bank account to the complainant.

    48. In para No.9 of the said complaint, it is clearly

    pleaded that accused has transferred Rs.2 lakhs on

    12.07.2018. But the complainant failed to withdraw the

    cheque bounce case. Further it is alleged that the

    complainant has asked him to pay Rs.16 lakhs including

    penal charges, also said that he has to pay Rs.10 lakhs.

    Therefore, these averments of his own complaint of the

    accused makes it clear that after he got to know that the

    cheque bounce case has been filed against him by the

    complainant, at the assurance of the complainant, to

    withdraw the said case, he has agreed to transfer Rs.2

    lakhs to him and despite of transferring Rs.2 lakhs on

    12.07.2018, the complainant has failed to withdraw the

    cheque bounce case. Hence, the contention raised by the

    accused in the present case that he transferred Rs 2 lakhs

    without knowledge of the pending cheque bounce case is
    29 C.C.21940/2017

    wholly false, and it also reflects upon the conduct of the

    accused.

    49. It is worth mentioning here that as per Ex.C20

    PCR No.2208/2018 the accused has borrowed Rs.2 lakhs

    from one Mr.Raju and separate Rs.2 lakhs from the

    complainant of this case. If the accused is a busiest actor

    and highly paid, then there was no reason to get Rs.2

    lakhs each loan from those 2 persons as narrated in

    Ex.C20. The fact that he has taken Rs.4 lakhs from them

    itself shows that he was in need of funds.

    50. Further, the complainant has produced copies

    of various cheque bounce cases filed against the

    accused, marked as Ex.C12 to Ex.C19. These documents

    demonstrate that multiple persons have initiated cheque

    bounce proceedings against the accused, wherein he had

    issued cheques to them. The said judgments also reflect

    the financial condition of the accused.

    51. In one of those complaints, the accused has

    issued his cheque of SBM bank account and even in the

    present case, the disputed cheque belongs to the

    account of the accused maintained in SBM. The counsel

    for the accused has argued that the cheque leaf was
    30 C.C.21940/2017

    taken in the year 2013 and it cannot be given in 2017 and

    to substantiate it the accused has taken information from

    his banker as per Ex.D9 on 24.07.2023. No doubt it is

    mentioned that the cheque book from numbers 262951

    to 263000 is issued on 08.07.2023. But no iota of

    evidence is produced before the Court to show that prior

    to obtaining the subsequent cheque book, the accused

    had exhausted all the cheque leaves from the earlier

    cheque book.

    52. Indeed, the account statement produced by the

    accused pertains only to the year 2016 and does not

    reflect that he had utilized all the cheque leaves issued in

    2013. Therefore, the possibility of issuance of the cheque

    even after obtaining a new cheque book cannot be ruled

    out. In the absence of cogent and convincing evidence,

    this Court is not inclined to accept the contention of the

    accused that a cheque leaf issued in the year 2013 could

    not have been used in 2017. There is no hard and fast

    rule in this regard.

    53. Yet another important contention taken by the

    accused is that the legal notice is not served on him. After

    the cheque got dishonorued, the complainant has issued
    31 C.C.21940/2017

    legal notice as per Ex.C3 through RPAD and it has been

    returned with a shara while postal authority tried to

    serve the notice, nobody was available in the address, as

    such it is returned back as per Ex.C6. The counsel for the

    accused has much argued that since there is dairy farm

    in the given address, many labours working and the

    entire family are residing in the given address, there was

    no reason for non-service of notice on the accused. It is

    further argued that the complainant has intentionally

    secured the postal shara to avoid proper service of notice

    upon the accused.

    54. It is significant to note here that the accused has

    not disputed his address shown in the legal notice. As per

    the postal authority, they tried to serve the notice on

    different dates i.e. from 27.09.2017 to 02.08.2017, but

    they could not served the notice. Except making

    suggestion to PW.1 that by colluding with postal

    authority he has obtained such shara, no admission is

    taken from the mouth of PW.1 in this regard and the

    accused has not examined postal authority to prove that

    despite of availability of the accused, in the given

    address, by colluding with complainant ,they have not
    32 C.C.21940/2017

    served the notice. The purpose of giving legal notice

    before filing the complaint is to provide an opportunity to

    the honest drawers of the cheques to make payment of

    the cheque, if for any reason they could not pay the

    amount. However, in the present case, as per his own

    version the accused has not paid the amount from 2013.

    But as per the complainant he has lent loan in the year

    2016, the notice is given on 24.07.2017. Therefore, by

    giving legal notice to the correct address of the accused,

    the complainant has complied the ingredients of Sec.138

    of NI Act and nothing contrary is proved by the accused

    in this regard.

    55. In C.C. Alavi Haji vs Palapetty Muhammed & Anr

    (2007) 6 SCC 555, the Hon’ble Apex court has held; “

    17. It is also to be borne in mind that the
    requirement of giving of notice is a clear departure from
    the rule of Criminal Law, where there is no stipulation of
    giving of a notice before filing a complaint. Any drawer
    who claims that he did not receive the notice sent by post,
    can, within 15 days of receipt of summons from the court
    in respect of the complaint under Sec 138 the Act, make
    payment of the cheque amount and submit to the Court
    that he had made payment within 15 days of receipt of
    summons (by receiving a copy of complaint with the
    summons) and, therefore, the complaint is liable to be
    33 C.C.21940/2017

    rejected. A person who does not pay within 15 days of
    receipt of the summons from the Court along with the
    copy of the complaint under Sec 138 of the Act, cannot
    obviously contend that there was no proper service of
    notice as under Sec 138 , by ignoring statutory
    presumption to the contrary under Sec 27 of the G.C. Act
    and Sec 114 of the Evidence Act. In our view, any other
    interpretation of the proviso would defeat the very object
    of the legislation… ”

    56. Therefore, defense of the accused that notice is

    not served holds no water as she has not deposited

    cheque amount before court as per law laid down by

    Apex court in aforementioned case law. The accused has

    not given reply to the notice and same is fatal to his

    defense.

    57. Further the accused contends that the

    complaint is filed with respect to time barred debt. The

    accused counsel has much argued that the loan

    transaction is done in 2013, the complainant has filed

    this case in 2017 and same is beyond 3 years, from the

    date of loan, as such it is time barred debt.

    58. There is an initial presumption regarding the

    date of issuance of the cheque U/Sec.118 of NI Act. Sec

    118 (b) of NI Act say that, Until the contrary is proved, the
    34 C.C.21940/2017

    following presumptions shall be made: as to date:–that

    “every negotiable instrument bearing a date was made or

    drawn on such date;”

    59. It is material to note that, according to the

    complainant, the loan was advanced on 08.11.2016,

    which has been specifically pleaded in the complaint and

    duly deposed to by PW.1 in his evidence. The cheque, as

    per Ex.C1, is dated 04.04.2017. There exists a statutory

    presumption regarding the date of issuance of the

    cheque under Section 118 of the NI Act. Nothing contrary

    has been elicited from the cross-examination of PW.1 to

    establish that the cheque was issued in the year 2013

    and not on the date mentioned therein. In fact, the

    accused has failed to prove that he had availed any loan

    in 2013 and had issued the disputed cheque during that

    period.

    60. Merely because the bank authorities have

    furnished information stating that the cheque book, to

    which the disputed cheque leaf belongs, was issued in

    the year 2013, it cannot be construed that the loan

    transaction itself took place in 2013, as contended by the

    learned counsel for the accused. According to the
    35 C.C.21940/2017

    complainant, a sum of Rs 12.5 lakhs was advanced on

    08.11.2016, and the present case was filed in the year

    2017. Hence, the complaint has been filed well within the

    period of limitation.

    61. Further, the learned counsel for the accused has

    extensively cross-examined PW.1 with regard to his

    Income Tax Return documents. The complainant has

    produced Ex.C10, i.e., his ITR for the assessment year

    2017-18. The counsel for the accused has contended that

    Ex.C10 has not been produced through the auditor, that

    the said auditor does not exist, that no such office is

    located at the address mentioned in Ex.C10, and that

    there are discrepancies in the evidence of PW.1

    regarding the details of the said auditor. On these

    grounds, it is argued that the complainant has produced

    false and fabricated Income Tax Return documents. It is

    pertinent to note here that the scope of the case is to see

    that whether the disputed cheque has been issued in

    discharge of legally enforceable debt or not. By giving

    oral evidence as well as documentary evidence i.e. bank

    statement, the complainant has clearly proved that he

    had Rs.12.5 lakhs with him and same is further supported
    36 C.C.21940/2017

    by the statutory presumptions available under Sections

    118 and 139 of the NI Act.

    62. Whether the complainant has complied with the

    provisions of the Income Tax Act in filing his ITR, or

    whether the said auditor exists or not, is beyond the

    scope of the present case. It is well-settled law that even

    if the alleged loan transaction is not disclosed in the

    Income Tax Returns, the same does not absolve the

    accused of his liability nor does it dispense with his

    burden to establish his defence. If at all any irregularity

    or misdeed has been committed by the complainant in

    respect of his ITR or its filing, it is for the concerned

    department to take appropriate action against him, and

    the same cannot be a ground to the accused to seek

    acquittal in the present case. Therefore, the entire cross-

    examination of PW.1 on the aspect of ITR is of no

    consequence.

    63. Further the accused contends that since the

    accused is famous actor, to defame him, the complainant

    has tried to give false press statement and it has been

    telecast in TV also and such efforts is made to extort

    money from the accused. In the cross-examination PW.1
    37 C.C.21940/2017

    has deposed that he had given a press statement only

    because the media personnel had approached him. He

    specifically denied the suggestion that he stated before

    the television that the accused had borrowed Rs 18 lakhs

    from him.

    64. The accused himself has produced the said

    news article published in Hi Bengaluru newspaper as per

    Ex.D4 and D11 and D12. On perusal of the same, it

    appears that it alleged that accused has taken loan of

    Rs.12.5 lakhs and not Rs.18 lakhs. Even otherwise based

    on the press statement, the Court cannot assume the

    facts. Court has to consider the pleadings of the

    complainant and the evidence given in that regard. The

    accused has already taken steps against the complainant

    for making such efforts of defaming him by filing private

    complaint. However, though the accused has not

    produced any documentary evidence regarding whether

    he has proceeded against the complainant or not.

    65. If the accused believed that his reputation was

    affected by the alleged press statements or TV telecast

    made by the complainant, being a well-educated and

    socially influential person, he is at liberty to pursue the
    38 C.C.21940/2017

    appropriate legal remedies. But the complainant’s efforts

    to recover the loan amount cannot be construed as an

    attempt to extort, as wrongly alleged by the accused.

    66. No doubt in the cross-examination dated

    08.11.2019 PW.1 has deposed that he has received Rs.3

    lakhs from the accused. But no proof is produced by the

    accused to prove that he has given such Rs.3 lakhs,

    through what mode, in whose presence, or in relation to

    which transaction. Admittedly the accused and the

    complainant are acquainted with each other and they

    were engaged in cinemas and TV serial, as such

    possibility of having any such small transaction between

    them cannot be brushed aside and for want of proof, this

    Court declines to hold that PW.1’s statement regarding

    Rs 3 lakhs amounts to any inconsistency in the case.

    67. Moreover, the accused paid Rs 2 lakhs on

    12.07.2018, after the filing of the present complaint. If

    the accused had already paid Rs 3 lakhs as stated above,

    no explanation is forthcoming as to what necessitated

    the payment of an additional Rs 2 lakhs to the

    complainant. Therefore, since this amount was

    transferred after the complaint is filed, the complainant
    39 C.C.21940/2017

    had no opportunity to refer to it in the complaint or to

    endorse it on the disputed cheque.

    68. No proof is produced by the accused prove that

    he has utilized more than 3 cheque books, after

    obtaining cheque book in 2013. Admittedly DW.2 and

    DW.3 are the partners of the dairy farm. But the

    complainant has stated that the accused has assured to

    take him as partner to the said dairy farm. The reasons

    why the accused gave such an assurance, or whether it

    was communicated to the other partner ie DW2, or even

    no such proposal came from accused, are irrelevant and

    do not assist the accused in establishing his defense in

    the present case.

    69. Further, the learned counsel for the accused has

    argued that, in view of the demonetization on

    09.11.2016, the payment of the loan amount to the

    accused in cash appears suspicious. However, the

    complainant has produced his account statement

    showing that he withdrew Rs 12.5 lakhs on 07.11.2016

    and paid the same to the accused on 08.11.2016.

    Therefore, the demonetization had no impact on this
    40 C.C.21940/2017

    cash transaction, as it was completed prior to the

    demonetization date.

    70. It is also well settled law that cash transaction

    cannot be termed as illegal per say. In Sanjabij Tari vs

    Kishore S.Borcar, reported in 2025 SCC Online SC 2069

    Apex court held that

    “20. However, this Court is of the view that any
    breach of Section 269SS of the IT Act, 1961 is subject to
    a penalty only under Section 271D of the IT Act, 1961.
    Further neither Section 269SS nor 271D of the IT Act,
    1961
    state that any transaction in breach thereof will be
    illegal, invalid or statutorily void. Therefore, any
    violation of Section 269SS would not render the
    transaction unenforceable under Section 138 of the NI
    Act or rebut the presumptions under Sections 118 and
    139 of the NI Act because such a person, assuming
    him/her to be the payee/holder in due course, is liable
    to be visited by a penalty only as prescribed.
    Consequently, the view that any transaction above
    Rs.20,000/- (Rupees Twenty Thousand) is illegal and
    void and therefore does not fall within the definition of
    ‘legally enforceable debt’ cannot be countenanced.
    Accordingly, the conclusion of law in P.C. Hari (supra) is
    set aside. ‘

    71. Further the counsel for the accused has argued

    that limit of sealing cap of the cheque is Rs.5 lakhs same

    is printed on the cheque lief at Ex.C1, but the
    41 C.C.21940/2017

    complainant has presented the cheque for Rs.10 lakhs as

    such the complaint is not valid. No doubt on Ex.C1 it is

    printed ‘multicity cheque is payable upto maximum of

    Rs.5 lakhs at all branches of SBM’. The Complainant has

    examined branch manager i.e. DW.3 in the present case,

    who has specifically denied the suggestion of the counsel

    for the accused that a cheque exceeding the printed limit

    of Rs 5 lakhs could not be honored for Rs 10 lakhs.

    Furthermore, the banker issued a memo, Ex.C2,

    indicating that the cheque was dishonored due to “funds

    insufficient” and not because it “exceeds arrangements”

    or is “invalid.”

    72. The bank manager, DW3, has specifically

    explained that while a cheque cannot be encashed

    directly for more than Rs. 5 lakhs, but if it is presented for

    an amount exceeding this limit, the cheque remains

    valid, the bank would contact the customer, obtain

    confirmation regarding the presentment, and then

    process the cheque. In view of this explanation, the

    argument advanced by the accused’s counsel that the

    offence under Section 138 of the NI Act does not apply to

    the disputed cheque is not admissible.

    42 C.C.21940/2017

    73. Further accused hasn’t produced his account

    statement and any proof to believe that as on the date of

    presentment of cheque he has sufficient balance in his

    account. Had he maintained sufficient balance, then also

    cheque got dishonoured for the reason ‘cheque invalid’

    that would have been different case. Except making fancy

    full suggestions to PW1about financial status of accused,

    no admissible evidence is produced before the court.

    Thus defence appears to be clear afterthought and mere

    eye wash tactics, to avoid liability of cheque.

    74. Further, the fact that the cheque was kept with

    the complainant for security is only to ensure that the

    complainant’s money was protected in case it is not

    repaid by accused. Further contention of the accused is

    that the security cheque does not attracts the offence

    punishable U/Sec.138 of NI Act is devoid of merits as it is

    clearly held by the Apex Court in catena of case laws that

    security cheque also comes within purview of Sec.138 of

    NI Act , provided the existence of legally enforceable

    debt.

    75. The Hon’ble Apex Court in 2016 (10) SCC 458 in

    between Sampelly Sathaynarayana Rao Vs. Indian
    43 C.C.21940/2017

    Renewable Energy Development Agency Ltd., held

    that,

    “Post dated cheque described as security towards
    repayment of installment of already disbursement loan
    amount, the proceeding u/s 138 of N.I. Act is maintainable
    in case of dishonor of such cheque. Further observed that,
    once loan amount was disbursed and as per the
    agreement installments had fallen due on date of issuance
    of cheque, dishonor of such cheque would fall u/s 138 of
    N.I. Act and such issuance of cheque undoubtedly
    represents outstanding liability”.

    76. The Hon’ble Supreme Court has clarified the

    position of law Sunil Todi and others vs State of

    Gujarat and others, reported in AIR 2022 SC 147,

    ” that where in the case of a loan transaction,
    the borrower agrees to repay the amount in a
    specified time frame and issues a cheque as a
    security to secure the repayment and the loan is
    not repaid, the cheque which is issued as security
    would mature for presentation.

    The Court observed:

    “A cheque issued as security pursuant to a financial
    transaction cannot be considered as a worthless
    piece of paper under every circumstance. ‘Security’
    in its true sense is the state of being safe and the
    security given for a loan is something given as a
    pledge of payment. It is given, deposited or
    pledged to make certain the fulfillment of an
    44 C.C.21940/2017

    obligation to which the parties to the transaction
    are bound. If in a transaction, a loan is advanced
    and the borrower agrees to repay the amount in a
    specified time frame and issues a cheque as
    security to secure such repayment; if the loan
    amount is not repaid in any other form before the
    due date or if there is no other understanding or
    agreement between the parties to defer the
    payment of amount, the cheque which is issued as
    security would mature for presentation and the
    drawee of the cheque would be entitled to present
    the same. On such presentation, if the same is
    dishonoured, the consequences contemplated
    under Section 138 and the other provisions of
    N.I.Act would flow.

    When a cheque is issued even though as
    ‘security’ the consequence flowing therefrom is
    also known to the drawer of the cheque and in the
    circumstance stated above if the cheque is
    presented and dishonored, the holder of the
    cheque/drawee would have the option of initiating
    the civil proceedings for recovery or the criminal
    proceedings for punishment in the fact situation,
    but in any event, it is not for the drawer of the
    cheque to dictate terms with regard to the nature
    of litigation.”

    77. Therefore principle laid down in above cases

    aptly applicable to case on hand. The accused was aware

    of these circumstances and issued the cheque knowingly.

    Additionally, multiple cheque cases filed against the
    45 C.C.21940/2017

    accused demonstrate that he had knowledge of the

    potential consequences of issuing cheques. In such

    circumstances, the accused cannot be permitted to

    escape from his liability by raising trivial and hyper-

    technical points.

    78. The accused has failed to substantiate credible

    evidence in support of his alleged transaction of Rs. 2

    lakhs with the complainant in the year 2013. Therefore,

    the argument regarding the printed limit of the cheque

    cannot invalidate the cheque or this complaint. Oral

    evidence of DW.2 is noway helpful to the accused as he is

    partner of the accused ie he is interested witness. If at all,

    interest was transferred from the account of DW.3, same

    cannot be construed for repayment of interest for loan in

    question, and moreover same is between the

    complainant and DW.3 and it cannot be interconnected

    with the present case which is pertaining to the loan of

    the year 2016 as per the complaint. Furthermore, very

    meager amount has been transferred by DW2 to

    complainant on two occasions. It is not sufficient to

    construe that interest for huge loan of Rs 12.5 lakhs.
    46 C.C.21940/2017

    79. Therefore, having scrutinized the entire case of

    the complainant the accused has failed to rebut the initial

    presumption in accordance with law. Indeed he has

    utterly failed to probablize his defense with convincing

    evidence. Mere making suggestion to PW.1 would not be

    the proof of such suggestions. Percontra, the

    complainant’s case is consistent and he has proved his

    case beyond reasonable doubts.

    80. Even any such minor inconsistencies existed in

    the evidence of PW.1, that will affect the case of the

    complainant and such minor inconsistencies cannot be

    ground to exonerate the liability of the accused to prove

    his defense, as the compliant has privilege of strong

    legal presumption given U/Sec.118 and 139 of NI Act. In

    the case of Rohitbhai Jivanlal Patel v. State of Gujarat

    reported in 2019 (5) SCALE 138, it is held that

    “even after purportedly drawing the presumption

    under Section 139 of the N.I. Act, the trial court

    proceeded to question the want of evidence on the part

    of the complainant as regards the source of funds for

    advancing loan to the accused and want of examination

    of relevant witnesses who allegedly extended him money
    47 C.C.21940/2017

    for advancing it to the accused. The Hon‟ble Supreme

    Court observed that this approach of the trial court had

    been at variance with the principles of presumption in

    law. After such presumption, the onus shifted to the

    accused and unless the accused had discharged the onus

    by bringing on record such facts and circumstances as to

    show the preponderance of probabilities tilting in his

    favour, any doubt on the complainant’s case could not

    have been raised for want of evidence regarding the

    source of funds for advancing loan to the accused.”

    81. Therefore, this Court is of the firm view that the

    complainant has proved his case in accordance with law.

    With these observations court proceed to answer POINT

    NO.I IN THE AFFIRMATIVE.

    82. POINT NO.II:- In view of the reasons assigned

    in above point, it is ample clear that accused has

    committed the offence punishable u/s 138 of the Act. A

    bare reading of sec.138 of the NI Act indicates that the

    purport of sec.138 is to prevent and punish the dishonest

    drawers of cheques who evade their liability.
    48 C.C.21940/2017

    83. The Hon’ble Apex Court in its recent decision in

    M/s. Meters & instrument Pvt Ltd. Vs. Kanchana

    Mehta reported in (2018)1 SCC-560 held at para 18(ii)

    that”(ii) The object of the provision being primarily

    compensatory, punitive element being mainly with the object of

    enforcing the compensatory element, compounding at the initial

    stage has to be encouraged but is not debarred at later stage

    subject to appropriate compensation as may be found.”

    84. In R. Vijayan vs. Baby and Another reported

    in AIR 2012 SUPREME COURT 528, Apex court held that

    ‘that unless there were special circumstances, in all
    cases of conviction, the Court should uniformly exercise the
    power to levy fine up to twice the cheque amount and
    keeping in view the cheque amount and the simple interest
    thereon at 9% per annum as the reasonable quantum of
    loss, direct payment of such amount as compensation. This
    Court rightly observed that uniformity and consistency in
    deciding similar cases by different courts not only increases
    the credibility of the cheque as a Negotiable Instrument but
    also the credibility of the Courts of Justice’.

    85. M/S Kalamani Tex vs P. Balasubramanian

    reported in AIRONLINE 2021 SC 82, Apex court

    reaffirmed aforementioned principle and held that

    “20. As regard to the claim of compensation raised on
    behalf of the respondent, we are conscious of the settled
    49 C.C.21940/2017

    principles that the object of Chapter XVII of the NIA is not
    only punitive but also compensatory and restitutive. The
    provisions of NIA envision a single window for criminal
    liability for dishonour of cheque as well as civil liability for
    realisation of the cheque amount. It is also well settled that
    there needs to be a consistent approach towards awarding
    compensation and unless there exist special circumstances,
    the Courts should uniformly levy fine up to twice the
    cheque amount along with simple interest at the rate of 9%
    per annum.”

    86. The transaction in the year 2016 and it took

    almost 10 years, for adjudicating the case on merits for

    one or other reasons. Therefore, having regard to the

    extent of loan, time from which it is lying with the

    accused and defense taken by the accused and failure to

    prove it, length of time taken for adjudicating the matter

    and keeping in mind the primary object of the provision,

    this court is of the opinion that it is fit case to impose

    double the cheque amount as fine amount , rather than

    imposing punitive sentence, thus if sentence of fine of

    Rs.20,00,000/- is imposed with a direction to compensate

    the complainant for his monitory loss, by awarding

    compensation U/Sec.357 of Cr.P.C, would meet the ends

    of justice. Accordingly, this court proceeds to pass

    following …..

    50 C.C.21940/2017

    ORDER

    The accused is found guilty for the offence

    punishable U/s.138 of Negotiable Instruments

    Act.

    Hence, acting U/sec.255(2) of Cr.P.C, the

    accused is convicted and sentenced to pay a

    fine of Rs.20,00,000/- (Rupees Twenty Lakhs

    Only), in default of payment fine amount, he

    shall undergo simple imprisonment for 2 years

    for the offence punishable under section 138 of

    N.I.Act.

    Out of the fine amount collected from

    the accused, an amount of Rs.19,90,000/-

    (Rupees Nineteen Lakhs Ninety Thousand

    only) shall be paid to the complainant as

    compensation U/s.357 of Cr.P.C. and the

    remaining fine of Rs.10,000/- shall be adjusted

    towards the cost of state expenses.

    The bail bonds of the accused shall be

    in force till the appeal period is over as
    51 C.C.21940/2017

    contemplated under the provisions of

    Sec.437(A) of Cr.P.C.

    Office to supply the copy of the

    Judgment to the accused forthwith at free of

    cost.

    (Dictated to the Stenographer, typed by her, corrected by me and
    then judgment pronounced in the open court on this the 23 rd day of
    March 2026). Digitally signed
    by TEJASWINI
    KM
    TEJASWINI
    Date:

                                         KM                   2026.04.04
                                                              17:20:09
                                                              +0530
                                               (Smt.Tejaswini K.M),
                                               XVI ACJM, Bengaluru
    
    
                                 ANNEXURE
    
    

    I. List of witnesses on behalf of complainant:

    P.W.1: Sri.Rajath Dwarka

    II. List of documents on behalf of complainant:

    Ex.C-1 : Original Cheque.

    Ex.C-1(a) : Signature of the accused.

    Ex.C-2 : Bank memo.

    Ex.C-3 : Legal notice.

    Ex.C-4 : Postal Receipt.

    Ex.C-5 : Returned Notice.

    52 C.C.21940/2017

    Ex.C-6 : Postal Cover.

    Ex.C-7 : Postal Receipt.

    Ex.C-8 : Postal Acknowledgment.

    Ex.C-9 : Copy of Statement of account.

    Ex.C-10: ITR Returns Document.

    Ex.C-11 : C/c of Complaint in CC.No.700/2018.

    Ex.C-12 : C/c of Order Sheet in PCR No.94/2018.

    Ex.C-13 : C/c of Order Sheet in CC.No.742/2019.

    Ex.C-14 : C/c of Complaint in PCR No.167/2019/

    Ex.C-15 : Affidavit.

    Ex.C-16 : C/c of Cheque.

    Ex.C-17 : C/c of Complaint in CC.No.8644/2021.

    Ex.C-18 : C/c of Complaint in CC.No.1328/2023.

    Ex.C-19 : C/c of Roznama in CC.No.1348/2022.

    Ex.C-20 : C/c of Complaint in PCR.No.2208/2018.

    III. List of witnesses for the accused:

    
           D.W.1: Sri.Ashwath Y.K
    
           D.W.2: Sri.Ashok Kulkarni
    
           D.W.3: Sri.Sathish
    
    IV.    List of documents for accused:
    
           Ex.D-1 : Copy of Bank Statement.
                  53                        C.C.21940/2017
    
    

    Ex.D-2 to 6: Notarized copies of Aadhar Cards.

    Ex.D-7 : Copy of Partition Deed.

    Ex.D-8 : Milk Received Bill.

    Ex.D-9 : Letter dated 24.07.2023.

    Ex.D-10 : Bank Statement.

    Ex.D-11 & 12 : Paper Publications.

    Ex.D-13 : Copy of Publication in TV Channel.

                                         Digitally
                                         signed by
                                         TEJASWINI K
                       TEJASWINI         M
                       KM                Date:
                                         2026.04.04
                                         17:20:16
                                         +0530
                              (Smt.Tejaswini K.M ),
                              XVI ACJM, Bengaluru
     



    Source link

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here