IMPORTANT POINT
Dishonour of cheque – In order to constitute offence under Section 138 of Negotiable Instruments Act, 1881, cheque must contain a legally enforceable debt.

JUDGMENT :

Mehta, J.

1. Leave granted.

2. The challenge in these appeals is laid to the common judgment and final order dated 8th July, 2024, passed by the learned Single Judge of the High Court of Karnataka at Bengaluru¹[Hereinafter, being referred to as ‘High Court’], whereby the criminal revision petitions²[The Criminal Revision Petitions filed by the appellant herein includes CRP No. 447 of 2018,448 of 2018, 449 of 2018, 450 of 2018, 451 of 2018, 452 of 2018, 453 of 2018, 454 of 2018,466 of 2018, 467 of 2018, 468 of 2018 and 469 of 2018. However, it is pertinent to note that the present appeals are filed only against the judgment and order in Criminal Revision Petitions No. 447-454 of 2018] filed by the appellant³[Hereinafter, being referred to as ‘appellant-accused’] herein were dismissed.

3. Brief facts relevant and essential for the disposal of the appeals are noted hereinbelow.

4. The appellant-accused and respondent⁴[Hereinafter, being referred to as ‘respondent-complainant] entered into a lease- cum-rent agreement on 12th May, 2014 for Flat No. 206, 2nd Floor, SAN VIL Apartment, 6th & 7th Cross, 50 Feet Main Road, Balaji Nagar, Mallathahalli Extension, Bangalore-560056⁵[Hereinafter, referred to as ‘subject flat’] owned by the appellant-accused. The respondent-complainant deposited a sum of Rs.9,00,000/- with the appellant-accused by way of ‘security deposit’. The rent for the subject flat was settled at Rs.2,500/- per month as per the rent agreement which was valid for a period of 11 months and was to terminate on 11th April, 2015, whereupon the appellant-accused would be required to refund the security deposit of Rs.9,00,000/- and collect the keys and receive vacant possession of the said flat from the respondent-complainant. Upon completion of 11 months, the respondent-complainant issued a notice dated 18th June, 2015, to the appellant-accused, imploring him to refund the security deposit amount. However, the appellant-accused could not arrange the said amount and thus, he issued four post-dated cheques to the respondent-complainant. The details of the cheques are mentioned hereinbelow: -

5. The respondent-complainant presented the above cheques with his bank and the same came to be dishonoured with the endorsement ‘funds insufficient’. Thereupon, the respondent- complainant filed four separate complaints⁶[Criminal Complaint Nos. 26639 of 2015, 1235 of 2016, 5198 of 2016 and 11151 of 2016] against the appellant- accused before the learned XXII Additional Chief Metropolitan Magistrate, Bangalore City⁷[Hereinafter, being referred to as ‘trial Court’]. The trial Court, vide judgment dated 9th November, 2016, convicted the appellant-accused in all the four complaints for the offence punishable under Section 138 of Negotiable Instruments Act, 1881⁸[Hereinafter, being referred to as ‘NI Act’] and sentenced him to pay a total fine amount of Rs.3,00,000/- with simple interest @ 6% per annum from the date of the cheques till realisation thereof. It was directed that out of the said fine amount, the respondent- complainant would be entitled to a sum of Rs.2,95,000/- as compensation and the remaining amount of Rs.5,000/- would be forfeited to the State Exchequer. The appellant-accused was directed to pay the said amount to the respondent-complainant within a period of 30 days from the date of the order and in default, he would have to undergo simple imprisonment for a period of one year.

6. Being aggrieved by the judgment of the trial Court, the appellant-accused⁹[Criminal Appeal Nos. 1429 of 2016, 1430 of 2016, 1431 of 2016 and 1432 of 2016] as well as the respondent-complainant¹⁰[Criminal Appeal Nos. 411