Siri Nidhi Credit Co-Op Society Ltd vs Shivamurthy Nayak . S.K on 8 April, 2026

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    Bangalore District Court

    Siri Nidhi Credit Co-Op Society Ltd vs Shivamurthy Nayak . S.K on 8 April, 2026

    KABC030561032020
    
    
    
    
                                Presented on : 13-11-2020
                                Registered on : 13-11-2020
                                Decided on     : 08-04-2026
                                Duration      : 5 years, 4 months, 25 days
    
    IN THE COURT OF LII ADDL. CHIEF JUDICIAL MAGISTRATE,
                       BENGALURU CITY
    
                                PRESENT
                 SMT.LAVANYA.H.N, B.Sc., LL.B.,
                LII Addl. Chief Judicial Magistrate,
                        Bengaluru.
    
                Dated this the 8th day of April, 2026
    
                         C.C. No.15377/2020
    
    COMPLAINANT:       SIRI NIDHI CREDIT CO-OP SOCIETY
                       LIMITED.
                       Registered Office at No.385, 8th 'A' Main,
                       11th Cross, Bhuvaneshwarinagara,
                       T.Dasarahalli
                       Bengaluru - 560 057
    
                       Rep by its Chief Executive Officer/Secretary,
                       Sri.Suresh.D.R,
                       S/o.Sri.Rangaiah,
                       Aged about 49 years.
    
                       (Rep By: Sri.Nagesha.V - Advocate)
    
    
                                     V/s.
                                         2
                                                     C.C.No.15377/2020
    
     ACCUSED:            SHIVAMURTHY NAYAK.S.K,
                         S/o.Late.Krishna Nayak,
                         Aged about 42 years,
                         No.352, 6th Main, 3rd Cross Road,
                         Parvathi Nagar, Laggere,
                         Bengaluru - 560 058.
    
                         Also at No.7, Henjagondanahalli,
                         Opp Mini Vidhanasoudha,
                         Arasikere, Hasan District - 573 103.
    
                         (Rep By : Smt.S.Swapna - Advocate)
    
    
    
    Date of presenting            03.02.2020.
    complaint
    Date of arrest of accused     NIL
    Name of the Complainant SIRI NIDHI CREDIT CO-OP SOCIETY
                            LIMITED.
    Date of commencement of 02.07.2025.
    evidence
    Date of closing evidence      19.02.2026.
    Offence complained of         Section 138 of Negotiable Instruments
                                  Act, 1881.
    Date of Judgment              08.04.2026.
    Opinion of the Judge          Accused found guilty.
    
    
    
                               :JUDGMENT:

    This Complainant has presented the complaint on
    03.02.2020 against the accused for the offense punishable
    under Sec.138 of Negotiable Instruments Act, 1881
    (hereinafter it is referred to as NI Act).

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    SPONSORED

    C.C.No.15377/2020

    2. THE BRIEF FACTS OF THE COMPLAINANT’S CASE
    ARE AS UNDER:-

    a) It is the case of the Complainant Society that the
    accused being a member of Complainant Society had availed a
    loan of Rs.1,50,000/- (Rupees One Lakh Fifty Thousand only)
    on 02.04.2019 by executing all necessary documents. One
    Sri. Dinesh Nayak K stood as a surety for said loan.

    b) It is further case of the Complainant Society that
    the accused has failed to repay the loan amount along with
    interest as agreed upon. When the Complainant Society
    approached the accused, the accused issued a cheque bearing
    No.844871, dated 30.10.2019, drawn on Canara Bank,
    Lottegollahalli Branch, Bengaluru, for a sum of Rs.1,70,000/-

    (Rupees One Lakh Seventy Thousand only) towards balance
    loan amount to discharge the legal debts by assuring to honor
    the said cheque on its presentation.

    c) It is further case of the Complainant Society that
    as per the instructions of the accused, the said cheque was
    presented for encashment on 30.10.2019 through its banker,
    Apex Co-op Bank limited,, T Dasarahalli, Bengaluru-57, but
    the said cheque returned with a shara dated 31.10.2019 that,
    “FUNDS INSUFFICIENT”. In spite of communication about
    bouncing of the cheque, the accused has not repaid the
    amount.

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    C.C.No.15377/2020

    d) It is further case of the Complainant Society that
    the Complainant Society caused a legal notice through its
    counsel on 29.11.2019 by RPAD to the accused demanding
    the payment of amount covered under the cheque. The said
    legal notice sent to the first address as shown in the cause
    title was returned as “No such addressee hence return to
    sender” on 02.12.2019 but the notice sent to the second
    address as shown in the cause title was returned as “Not
    claimed return to sender” on 05.12.2019. But, till this day the
    accused has not repaid the amount. Hence, the complainant
    was constrained to file this complaint.

    3(a) After presenting the complaint cognizance of the
    offense under Section 138 of N.I Act, was taken. As a prima-
    facie case was made out against the accused, by order dated
    10.11.2020 Criminal Case was registered and process was
    issued to the accused.

    3(b) In response to the summons, accused has caused
    his appearance through Smt.S.Swapna – Advocate and got
    obtained the bail on 02.07.2025. The substance of accusation
    was recorded on 02.07.2025. Since the accused pleaded not
    guilty and claimed to be tried, the matter was posted for trial.

    4. The sworn statement of the complainant was
    treated as examination-in-chief of complainant and the
    documents at Ex.P.1 to P.13 are marked through PW.1 and
    Ex.P.14 and Ex.P.15 are marked through DW.1.

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    C.C.No.15377/2020

    5. All the incriminating evidence appearing against
    the accused in the evidence of PW.1 has been read over and
    explained to the accused under Section 313 of Cr.P.C., and
    accordingly, answers given by the accused were recorded.

    6. The accused in order to prove his defense, he
    himself examined as DW.1.

    7. Having heard learned advocate for the complainant
    and learned advocate for the accused and on perusal of the
    materials available on record, the points that would arise for
    determination are as under:-

    POINTS

    1) Whether the complainant proved that the
    accused has issued cheque bearing No.844871
    for Rs.1,70,000/- dated 30.10.2019 drawn on
    Canara Bank, Lottegollahalli Branch in favour
    of the complainant towards discharge of lawful
    dues to the complainant?

    2) Whether the Complainant proved that the
    complainant has presented the said Cheque
    within a period of its validity for encashment
    through his banker, Apex Co-op Bank Limited,
    T.Dasarahalli Branch which came to be
    dishonored with an endorsement “FUNDS
    INSUFFICIENT”

    3) Whether the Complainant proved that the
    demand notice was issued within one month
    from the date of endorsement of the Bank and
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    C.C.No.15377/2020

    accused has been duly served with the demand
    notice ?

    4) What order or sentence?

    8. The answers to the above points are as follows:

                  Point No.1 :       In the AFFIRMATIVE;
                  Point No.2 :       In the AFFIRMATIVE;
                  Point No.3 :       In the AFFIRMATIVE;
                  Point No.4 :       As per final order
                                     for the following:
    
                                  REASONS
    POINT No.1:
    
    

    9(a) It is the argument of the Learned counsel for the
    complainant that the accused has not disputed that the
    cheque at Ex.P1 belong to his account and has admitted his
    signature thereon. When the accused admits his signature on
    the cheque, the burden lies upon him to rebut the
    presumption under Section 139 of the N.I. Act. However, the
    accused has failed to rebut the presumption favor the
    complainant that the cheque was issued towards discharge of
    a legally recoverable debt.

    9(b) Learned counsel for the complainant further
    submits that an offence under Section 138 of the N.I. Act is a
    statutory offence. In such cases, the accused must specifically
    plead and prove his defense. But, the accused has failed to
    prove that the accused has borrowed loan of Rs.15,000/- and
    7
    C.C.No.15377/2020

    the same was repaid and cheque in question was not issued
    towards repayment of Rs.1,70,000/-. On the contrary, the
    Complainant Society has proved its case through oral and
    documentary evidence. The learned counsel for the
    Complainant Society in support of his argument has placed
    reliance upon the following decisions:

    1. In (2010) 11 SCC 441 between Rangappa Vs. Sri
    Mohan
    ‘s case, wherein Hon’ble Apex Court has held that:

    “Complaint discloses prima-facie existence of a
    legally enforceable debt or liability – since appellant
    admitted that signature on the cheque was his,
    statutory presumption under S. 139 comes into
    play and the same was not rebutted even with
    regard to the materials submitted by complainant –
    Appellant not able to prove “lost cheque” theory –
    Apart from not raising a probable defense, appellant
    was also not able to contest the existence of a
    legally enforceable debt or liability – Hence, his
    conviction by High Court, held, proper”.

    2. In (2019) 4 SCC 197 between Bir Singh Vs. Mukesh
    Kumar
    ‘s case, wherein Hon’ble Apex Court has held that:

    Section 139 mandates that unless the the
    contrary is proved, it is to be presumed that the
    holder of a cheque received the cheque of the
    nature referred to in Section 138, for the discharge,
    in whole or in part, of any debt or other liability.
    However, the presumption is rebuttable by proving
    to the contrary. Section 139 introduces an
    8
    C.C.No.15377/2020

    exception to the general rule as to the burden of
    proof and shifts the onus on the accused to prove
    by cogent evidence that there was no debt or
    liability. Mere denial or rebuttal by the accused
    was not enough”.

    3. In Criminal Appeal Nos.1233-1235 of 2022 between
    P.Rasiya Vs. Abdul Nazer and another‘s case, wherein Hon’ble
    Apex Court has held that:

    “Therefore, once the initial burden is
    discharged by the complainant that the cheque was
    issued by the accused and the signature and the
    issuance of the cheque is not disputed by the
    accused, in that case, the onus will shift upon the
    accused to prove the contrary that the cheque was
    not for any debt or other liability. The presumption
    under section 139 of NI Act is a statutory
    presumption and thereafter, once it is presumed
    that the cheque is issued in whole or in part of any
    debt or other liability which is in favour of the
    complainant/holder of the cheque, in that case, it is
    for the accused to prove the contrary”.

    10. Per contra, it is the argument of the learned
    counsel for the accused that the accused had borrowed
    personal loan of Rs.15,000/- from the Complainant Society
    and the same was repaid by the accused in two installments of
    Rs.5,000/- and Rs.10,000/-. The accused has not borrowed
    the loan of Rs.1,50,000/- from the Complainant Society as
    alleged in the complaint. The Complainant Society though
    has given loan of Rs.15,000/- at the time of granting loan, the
    9
    C.C.No.15377/2020

    Complainant Society got obtained the signatures of the
    accused on blank paper as well as on blank cheque. By mis-
    using the signed blank papers, by creating a story of lending
    loan of Rs.1,50,000/- has filed this false case by filling up of
    blank cheque taken by the Complainant Society at the time of
    granting loan of Rs.15,000/-.

    11. Keeping in mind the well established and settled
    principle laid down in the above decisions relied by the learned
    counsel for the Complainant Society, let this Court to see the
    case on hand.

    12. To prove the guilt of the accused, PW1/the
    authorized representative of the Complainant Society, in his
    examination-in-chief by way of affidavit, has reproduced the
    averments made in the complaint and produced documents
    marked at Ex.P1 to Ex.P15.

    13. Ex.P.1 is the authorization letter given by the
    Complainant Society in favour of PW.1. Based on Ex.P.1,
    PW.1 has filed the present case and prosecuted the case.

    14. Ex.P.2 is the cheque bearing No.844871 for
    Rs.1,70,000/- dated 30.10.2019 drawn on Canara Bank,
    Lottegollahalli Branch, Bengaluru in favour of the
    Complainant Society. Ex.P.3 is the bank memo dated
    31.10.2019, wherein it could be seen that the cheque at Ex.P2
    presented by the Complainant Society was returned unpaid as
    10
    C.C.No.15377/2020

    per Bank endorsement dated 31.10.2019 for “FUNDS
    INSUFFICIENT”.

    15. Ex.P4 is the office copy of the demand notice dated
    29.11.2019 issued by the Complainant Society to the accused
    through Advocate calling upon the accused to pay the cheque
    amount within 15 days from the date of receipt of the notice.
    Ex.P5 and 6 are the postal receipts for having sent the notice
    at Ex.P4 to the accused to his two addressees. Ex.P.7 is the
    postal returned cover wherein it could be seen that notice sent
    to the accused to his Bengaluru address returned with Shara
    “No such person”. Ex.P.8 is the postal returned cover, wherein
    it could be seen that notice issued to the accused to his native
    place address returned with shara dated 06.12.2019 as “NOT
    CLAIMED”.

    16. It is a settled principle that once the signature on a
    cheque is admitted, a presumption arises under Section 139
    of the N.I. Act that the cheque was issued in discharge of a
    debt or liability. This presumption extends to the existence of
    a legally enforceable debt or liability. There is no doubt
    regarding the initial presumption in favor of the complainant.
    However, this presumption is rebuttable. The initial onus lies
    on the accused to rebut it by raising a probable defence to the
    satisfaction of the Court. The standard of proof required is
    ‘preponderance of probabilities’. If the accused raises a
    probable defence creating doubt about the existence of a
    legally enforceable debt or liability, or shows that the
    11
    C.C.No.15377/2020

    consideration was improbable, doubtful, or illegal, the onus
    shifts to the complainant to prove the debt as a matter of fact.
    Failure to do so results in the complainant’s case failing.

    17. To invoke the presumption under Sections 118 and
    139 of the N.I. Act, the complainant must establish that the
    cheque belongs to the accused and bears his signature on it.
    Here, the accused has not denied that Ex.P1 is his cheque and
    his signature thereon. Thus, it is established that the cheque
    at Ex.P.1 belongs to the accused and bears his signature.

    18. Once the complainant discharges this burden, the
    Court must presume under Section 139 of the N.I. Act that the
    cheque was issued in discharge of a debt or liability. However,
    this presumption is rebuttable. The Court must now examine
    whether the accused has raised a probable defence to rebut it.

    19. The accused in his defense evidence has deposed
    that in the year 2018-19 he borrowed loan of Rs.15,000/-
    from the Complainant Society, but not Rs.1,50,000/-.
    Though the Complainant Society has given cheque of
    Rs.1,50,000/-, by taking his signature in another cheque, the
    Complainant Society itself has drawn the amount of
    Rs.1,50,000/-. He has further deposed that on the date of
    borrowing the loan of Rs.15,000/-, the blank signed cheque
    was taken by the Complainant Society. But, he has not issued
    the cheque to the Complainant Society as stated in the
    complaint. He has repaid the loan amount in the year 2020 by
    12
    C.C.No.15377/2020

    paying Rs.5,000/- and Rs.10,000/- in two installments. In
    spite of repayment of the loan, cheque and signed blank
    papers were not returned to the accused. No intimation was
    given with regard to dishonor of cheque. He came to know the
    dishonor of cheque, when the police informed the same.

    20. Though the PW.1 has been subjected to lengthy
    cross-examination, nothing was elicited from the mouth of the
    PW.1 which favors the defense of the accused that the accused
    has not borrowed loan of Rs.1,50,000/- from the Complainant
    Society and towards discharge of the said loan, cheque in
    question was not issued.

    21. The accused in his cross-examination has admitted
    his signatures in loan documents at Ex.P.9 to 11, 14 and 15.
    Ex.P.9 is the loan application submitted by the accused to the
    Complainant Society, wherein it could be seen that on
    23.03.2019, the accused has sought for financial assistance of
    Rs.2,00,000/- from the Complainant Society for his domestic
    purpose. Ex.P.10 is the agreement executed by the accused
    along with surety, wherein it could be seen that the accused
    has borrowed the loan of Rs.1,50,000/- from the Complainant
    Society on 02.04.2019 agreeing the repay the same in 50
    monthly installments of Rs.3,000/- each commencing from
    02.04.2019 with interest at the rate of 20% per annam.
    Ex.P.11 is the On Demand Pro-Note executed by the accused
    and surety wherein it could be seen that the accused and the
    surety had executed an on demand pro-note on 02.04.2019
    13
    C.C.No.15377/2020

    agreeing to repay the loan amount of Rs.1,50,000/- with
    interest at 20% Per Annam. Ex.P.14 is the affidavit given by
    accused to the Complainant Society on 23.03.2019. Ex.P.15
    is the letter given by the accused to the Complainant Society
    on 02.04.2019 requesting for issuing bearer cheque, as he
    urgent need of money.

    22. The accused in his cross-examination though he
    has admitted his signatures on loan documents as well as in
    the cheque, he has stated that at the time of giving loan of
    Rs.15,000/-, the Complainant Society has taken his
    signatures on blank papers.

    23. The current account statement of the Complainant
    Society at Ex.P.13 speaks that on 09.04.2019, the accused
    has drawn Rs.1,50,000/- by presenting cheque. The loan
    account statement of accused at Ex.P.12 shows that on
    02.04.2019 the Complainant Society disbursed loan of
    Rs.1,50,000/-.

    24. The loan documents produced by the Complainant
    Society speak that on 02.04.2019, the accused has borrowed
    loan of Rs.1,50,000/- from the Complainant Society. Further,
    it appears that after borrowing the loan, the accused did not
    pay the installments as agreed. From the loan account
    statement of the accused, it could be said that on the date of
    presenting the cheque, accused was due of more than
    Rs.1,70,000/- to the Complainant Society.

    14

    C.C.No.15377/2020

    25. Except oral say of the accused that the
    Complainant Society has given loan of Rs.15,000/-, but not
    Rs.1,50,000/-, nothing was placed on record in support of his
    defense. If really, the Complainant Society has cheated the
    accused by paying Rs.15,000/-, though Rs.1,50,000/- was
    sanctioned and by mis-using the blank cheque, false case was
    filed, the accused could have taken any legal action against
    the Complainant Society. But, no such steps has been taken.

    26. When the accused admitted his signatures on he
    loan documents placed by the Complainant Society, it is
    burden upon the accused to prove that, though Complainant
    Society has given personal loan of Rs.15,000/-, by mis-using
    his signature on the blank document, the Complainant Society
    has created the loan documents stating that accused has
    borrowed the loan of Rs.1,50,000/-. But, the accused has
    failed to prove his defense either getting any admissions from
    the PW.1 or independently.

    27. In view of the aforesaid discussions, in the
    considered opinion of this Court, it is held that the
    complainant has proved that the accused has issued cheque
    bearing No.844871 for Rs.1,70,000/- dated 30.10.2019 drawn
    on Canara Bank, Lottegollahalli Branch in favour of the
    Complainant Society towards discharge of lawful dues to the
    Complainant Society. Thus, it is held that the complainant
    15
    C.C.No.15377/2020

    has proved the Point No.1 beyond all reasonable doubt.
    Hence, Point No.1 is answered in the AFFIRMATIVE.

    POINT No.2 AND 3:

    28. These two points are taken up together for common
    discussion to avoid repetition of facts.

    It is relevant to note here that, only proving of existence
    of legally recoverable debt is not suffice to convict the accused
    for the offense punishable under section 138 of N.I.Act. In
    addition to this, the complainant has also to satisfy the
    following ingredients:-

    1. That the complainant has presented the
    said cheuqe for encahsment within its
    validity period;

    2. That the said Cheque has been returned
    unpaid for want of sufficient funds in the
    account of the accused;

    3. That the complainant has issued
    statutory notice demanding the amount
    covered under the Cheque to the accused
    within the stipulated period of 30 days
    form the date of receipt of notice of
    dishonour of Cheques in question;

    4. That the accused has failed to comply
    with, the demand notice issued, within the
    statutory period of 15 days from the date
    of receipt of such statutory notice; and
    16
    C.C.No.15377/2020

    5. That the complaint has been presented
    within the period of one month after expiry
    of 15 days from the date of receipt of
    statutory notice issued to the accused as
    provided under section 142 of N.I.Act.

    29. It is seen that the complainant has got the
    demand notice on 29.11.2019 at Ex.P.4 issued within
    stipulated period of 30 days from the date of receipt of
    intimations of dishonor of Cheque.

    30. It is one of the arguments of the learned counsel
    for the accused that accused has not been served with the
    notice.

    31. Per contra, it is the argument of the learned
    counsel for the Complainant Society that notice issued to the
    accused to his Bengaluru address which was the address
    provided to the Society by the accused returned unserved as
    “NO SUCH PERSON”, whereas notice issued to the accused to
    his Arasikere Address, which is the permanent address of the
    accused returned with postal shara “UNCLAIMED”. The
    accused in his cross-examination has also admitted that he
    resides in the second address which is the native place
    address of the accused for which notice was sent. The accused
    has not produced any document to show that he was not
    residing in the addresses for which notice was sent. When the
    notice which was sent to proper and correct address of the
    17
    C.C.No.15377/2020

    accused, returned with shara “UNCLAIMED” then the Court
    has to draw a presumption that, the accused has been duly
    served with the notice, unless it is proved by the accused that
    the address for which notice was sent is not the proper and
    correct address of the accused. But, the accused has not
    rebutted the presumption. Hence, the accused has been duly
    be served with the notice.

    32. The Hon’ble Apex Court in the decision reported in
    2007 (6) SCC 555 between C.C.Alavi Haji Vs. Palapetty
    Muhammed and another
    has held that”Insofar as the question
    of disclosure of necessary particulars with regard to the issue
    of notice in terms of proviso (b) of Section 138 of the Act, in
    order to enable the Court to draw presumption or inference
    either under Section 27 of the G.C. Act or Section 114 of the
    Evidence Act, is concerned, there is no material difference
    between the two provisions. In our opinion, therefore, when
    the notice is sent by registered post by correctly addressing
    the drawer of the cheque, the mandatory requirement of issue
    of notice in terms of Clause (b) of proviso to Section 138 of the
    Act stands complied with. It is needless to emphasise that the
    complaint must contain basic facts regarding the mode and
    manner of the issuance of notice to the drawer of the cheque.
    It is well settled that at the time of taking cognizance of the
    complaint under Section 138 of the Act, the Court is required
    to be prima facie satisfied that a case under the said Section is
    made out and the aforenoted mandatory statutory procedural
    requirements have been complied with. It is then for the
    18
    C.C.No.15377/2020

    drawer to rebut the presumption about the service of notice
    and show that he had no knowledge that the notice was
    brought to his address or that the address mentioned on the
    cover was incorrect or that the letter was never tendered or
    that the report of the postman was incorrect. In our opinion,
    this interpretation of the provision would effectuate the object
    and purpose for which proviso to Section 138 was enacted,
    namely, to avoid unnecessary hardship to an honest drawer of
    a cheque and to provide him an opportunity to make amends”.

    33. It is no doubt, as per Ex.P.8, the notice sent to the
    accused to his native address returned with postal shara
    dated 06.12.2019 as “UNCLAIMED”. It is true, when the
    notice issued to the accused to his correct address returned
    with shara “Refused or Unclaimed” then it has to be presumed
    that the accused has been duly served with notice. It is
    burden upon the accused to prove that the address for which
    notice sent was not his proper and correct address. If the
    accused proves that notice was not sent to his last known
    correct address then the complainant has to prove that the
    accused has intentionally avoided to take notice though it was
    sent to his correct and proper address.

    34. The complainant in his cross-examination has
    deposed that he resides in House No.7, Opp to Mini Vidhana
    Soudha, Hengegondanahalli, Arasikere. As could be seen at
    Ex.P.8, the Complainant Society has issued the notice to the
    19
    C.C.No.15377/2020

    accused to the above stated his native place address. From
    this, it could be said that the Complainant Society has rightly
    sent the notice to the correct and proper address of the
    accused.

    35. When the notice which was sent to correct and
    proper address of the accused returned with postal shara
    “NOT CLAIMED/UNCLAIMED”, then it has to be presumed
    that accused has been duly served with the demand notice.
    The accused has not rebutted this presumption, on the other
    hand, the accused himself has deposed that he resides in his
    native place address for which notice was sent. Hence, it is
    held that there is no merit in the argument of the learned
    counsel for the accused that accused has not been served with
    the demand notice.

    36. It is evident from the file that the complainant has
    presented the present complaint on 31.12.2019 i.e., within the
    period of one month after expiry of 15 days from the date of
    receipt of the legal notice by the accused.

    37. From the above documentary evidence, it is held
    that, in this case, all the ingredients of section 138 of N.I Act
    have been complied with.

    38. In view of the aforesaid discussions, in the
    considered opinion of this Court, the complainant has proved
    20
    C.C.No.15377/2020

    the Point No.2 and 3 beyond all reasonable doubt. Therefore,
    the Point No.2 and 3 are answered in the AFFIRMATIVE.

    POINT No.4:

    39. On going through the entire oral and documentary
    evidence on record, the conduct of the accused goes to show
    that he has issued the cheque in question at Ex.P.2 without
    maintaining sufficient amount in his account. This shows the
    intention of the accused is to defraud the Complainant Society
    and to escape from her liability to pay the cheque amount.

    40. In the instant case, accused issued cheque in
    question to the Complainant Society towards repayment loan
    which was due by his to the Complainant Society but, he has
    failed to keep up his promise which amounts to unjust
    enrichment for which Complainant Society is to be
    compensated. Hence, having been considering the aforesaid
    aspects and also in view of foregoing answers on Point No.1 to
    3, the accused is liable to be punished under section 138 of
    N.I.Act.

    41. Considering the length of the case, amount under
    the cheque, reasonable rate of interest from the date of
    issuance of the cheque till date, the cost of expenses of the
    litigation and time spent by the Complainant Society, this
    Court is of the view that it is proper to impose fine of
    Rs.3,10,000/- out of which Rs.3,00,000/- shall be payable to
    21
    C.C.No.15377/2020

    the Complainant Society as compensation towards loan
    account of the accused and remaining Rs.10,000/- towards
    State. Accordingly, this court proceeds to pass the following:-

    ORDER
    The complaint filed by the Complainant
    Society U/Sec.200 of Cr.P.C for the offence
    punishable under Section 138 of Negotiable
    Instrument Act, 1881., is hereby allowed.

    Acting under Section 255(2) of Cr.P.C., the
    accused is hereby convicted of the offence
    punishable u/S.138 of Negotiable Instruments
    Act, 1881.

    Accused is sentenced to pay fine of
    Rs.3,10,000/- (Rupees Three Lakhs and Ten
    Thousand Only), in default to undergo simple
    imprisonment for three months.

    Further, it is ordered that out of fine
    amount of Rs.3,10,000/-, Rs.3,00,000/-
    (Rupees Three Lakhs Only) shall be payable to
    the Complainant Society as compensation and
    the remaining amount of Rs.10,000/- (Rupees
    Ten Thousand Only) shall be payable towards
    State.

    Since accused is absent copy of the
    Judgment has not been supplied though copy of
    Judgment is prepared and ready. The same is
    kept in file.

    The bail and surety bond of the accused
    dated 02.07.2025 stands canceled.

    22

    C.C.No.15377/2020

    (Dictated to Stenographer directly on computer, computerized
    by him, corrected and then pronounced by me in the open
    court on this the 8th day of April, 2026)

    (LAVANYA.H.N)
    LII ADDL. C.J.M., BENGALURU.

    
    
    
                             ANNEXURE
    WITNESSES   EXAMINED           ON      BEHALF    OF    THE
    COMPLAINANT/S:
    
    PW-1            :    SRI.SURESH.D.R.
    
    DOCUMENTS    EXHIBITED            ON   BEHALF    OT    THE
    COMPLAINANT/S:
    
    Ex.P-1         Authorization Letter;
    Ex.P-2         Cheque;
    Ex.P-3         Bank Memo;
    Ex.P-4         Legal Notice dated 29.11.2019;
    Ex.P-5 & 6     Two Postal Receipts;
    Ex.P-7 & 8     RPAD Returned Covers;
    Ex.P-9         Loan Application;
    Ex.P-10        Loan Agreement;
    Ex.P-11        On Demand Pro-Note;
    Ex.P-12        Loan Account Extract;
    Ex.P-13        Current Bank Statement of Complainant Society;
    Ex.P-14        Affidavit of accused;
    Ex.P-15        Letter of accused.
    
    
    
    

    WITNESSES EXAMINED ON BEHALF OF THE ACCUSED/S:

    DW-1            :    SRI.SHIVAMURTHY NAYAK.S.K.
                           23
                                       C.C.No.15377/2020
    
    
    

    DOCUMENTS EXHIBITED ON BEHALF OF THE ACCUSED/S:

    NIL

    (LAVANYA.H.N)
    LII ADDL. C.J.M., BENGALURU.

    Digitally signed
    by LAVANYA H

                      LAVANYA             N
                      HN                  Date:
                                          2026.04.08
                                          17:34:24 +0530
     



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