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2007 Supreme(AP) 1010

2008 (2) ALT (Crl.) 174 (Kar.)
IN THE HIGH COURT KARNATAKA AT BANGALORE
R.B. NAIK, J.
Om Shakthi SC/ST and Minority Credit Cooperative Society Ltd. — Appellant
Versus
M. Venkates — Respondent
Crl. Appeal No. 1065 of 2005
Decided on 5-10-2007.

Advocates appeared:
Mr. C.N. Krishna Reddy, for Appellant.
Mr. V. Lakshmikant Rao, for Respondent.

Headnote:

Code of Criminal Procedure – Section 200 – Negotiable Instrument Act – Section 138 – Funds insufficient – Dishonor of Cheque – Acquittal – This is an appeal filed by the original complainant-appellant challenging order of acquittal passed by the XXII Add!. CMM, Bangalore and XXIV Add!. Small Causes Judge, Bangalore City in C.C. acquitting respondent accused of offence punishable under Section 138 of N .1.Act – Held, Complaint is a co-operative Society – President has examined himself as P.W.1. besides the same, the legal notice has been issued for and on behalf of the Society by its Secretary – Prayer in the complaint is for payment of the amount covered under cheque with cost and interest – All these clearly indicate that the complaint is not maintainable in law and the trial Court was justified in rejecting the complaint for the reason as stated above – In addition to the reasons assigned by the trial Court in acquitting the accused and for the reasons stated above, Court hold that the trial Court was justified in acquitting the accused of the allegation made against him – Appeal Dismissed

JUDGMENT

This is an appeal filed by the original complainant-appellant challenging the order of acquittal passed by the XXII Add!. CMM, Bangalore and XXIV Add!. Small Causes Judge, Bangalore City dated 6-4-2005 in C.C.No. 36103/2002 acquitting the respondent accused of the offence punishable under Section 138 of the N .1.Act.

2.lt is the case of the appellant-complainant that it is a Co-operative society and it had disbursed a loan of Rs. 25,000/- to the respondent accused on 5-2-2001. The respondent accused failed to discharge the loan and pay the installments due as and when they fell due. After due persuasion, the respondent-accused issued a cheque Ex. P-2 in favour of the complainant Co-operative society for a sum of Rs. 25,000/dated 12-2-2002 towards the discharge of liability. The cheque so issued was presented by the complainant Co-operative Society through its banker KSC Apex Bank Ltd., Magadi road, Bangalore on 18-6-2002. EX.P-3 is the endorsement issued by the Bank returning the cheque with an endorsement "funds insufficient". The said endorsement is dated 19-6-2002. On the return of the cheque without realization, the complainant Society through its Secretary got issued a legal notice dated 2-7-2002 Ex. P-5 to the respondent accused, as provided under Section 138(2)(b) of the N .1.Act, demanding the amount covered under the cheque dated 12-2-2002. The said notice was sent through Registered Post Acknowledgment Due. The acknowledgement for having served the notice to the respondent accused is marked as Ex. P-8 the same is signed by respondent/accused on 4-7-2002. IN addition to sending the notice under Registered Post Acknowledgment Due, the copy of the notice was also sent under Certificate of Posting on 2-7-2002 and the postal endorsement issued is marked as Ex. P-6. In addition to producing the said documents pertaining to the transaction and filing of the complaint under Section 200 Cr.P .C. for offence punishable under Section 138 of the N.I. Act, the complainant Bank also produced Ex. P-9 and P-10 to establish the transaction of having disbursed a sum of Rs. 25,000/- to the respondent-accused. Ex. P-9 is a voucher dated 5-2-2001 indicating payment of loan to the respondent-accused, Ex. P-10 is the letter of undertaking of the respondent-accused.

3. As the respondent-accused did not respond to the notice dated 2-7-2002, not replied the same, nor made the payment as demanded in the said notice, the appellant complainant presented a complaint as per Ex. P-1, on 30-7-2002 with a prayer that the respondent-accused should be convicted and to pass an order for payment of the amount with cost and interest. On presentation of the complaint the Trial Court took cognizance, recorded the sworn statement of the complainant-appellant, directed issue of process to the accused. In response to the process, the respondent-Accused, put in appearance in the case. The complainant on its behalf examined the President of the Complainant Society as P.W. 1 and got marked Ex. P-1 to P-10. The defence got marked Ex. 0-1 to 0-6. Ex. 0-1 is a receipt issued by the complainant Society in favour of the respondent-accused for having paid a sum of Rs. 2,500/-. Ex. 0-2 is the pass-book reflecting payment of Rs. 1,452/- and Rs. 1,449/- by the respondent-accused to the complainant Society, Ex. 0-3 to 0-6 are the receipts issued by the complainant Society in favour of the accused for having received a sum of Rs. 1,452/-, Rs. 1,435/-, Rs. 1,449/- and Rs. 3,414/- respectively. The Trial Court on appreciation of the material on record, has arrived at a conclusion that the presentation of the complaint by the complainant society through its President without authorization of the society or without any Power of Attorney executed by the Society in favour of the President and as no document was produced before the Court to establish that the President was authorized to present the complaint, the trial Court acquitted the respondent-accused of the charges le























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