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2014 Supreme(AP) 579

High Court of Andhra Pradesh
B. SIVA SANKARA RAO, J.
M/s. Appolo Tyres Ltd.
Versus
M/s. H.M. Tyres & Another
Criminal Appeal Nos. 1590, 1591, 1592, 1594, 1595, 1596, 1597, 1598, 1599, 1600, 1601, 1602, 1652, 1653 & 1654 of 2005
Decided on : 06-06-2014

Advocates appeared:
For the Appellant:M.S.N. Prasad, Advocate.
For the Respondents:R1 to R3, B. Nagi Reddy, Advocate, R4, Public Prosecutor.

Headnote:

Code of Criminal Procedure, 1973 - Section 207 - Negotiable Instruments Act, 1881 - Sections 118, 118(a), 138 and 139 - Chapter XVII - Banking Public Financial Institutions and Negotiable instruments Laws - Evidence Act, 1872 - Section 4 - Supply of the products – Cheque dishonored - Supply of the products through its Branch Office at city for the orders placed by the accused, being their dealers - For the amounts covered there under for each of the invoices – Accused issued the respective cheques, total 43 in number, when presented for collection returned dishonored and for the statutory notice - Accused rebutted the presumptions available against them and in favor - Admittedly purchased the stocks as per the orders under the respective invoices for which the cheques were issued - From showing the amounts covered by 3 cheques issued by the accused in favor of the complainant for its discharge - Encashed, as reflected from the evidence - Shows nothing due under the cheques dishonored and the stop payment issued is for not payable and committed there under no offence – Held, Accused issued the respective cheques, total 43 in number, during the period - It was held by the apex Court in that the Act not contemplated grant of compensation but envisages imposition of fine not exceeding twice the amount of dishonored cheque and out of said fine amount, the complainant be compensated - Unlike for other forms of crime, the punishment is not a means of seeking retribution, but is more a means to ensure payment of money - To recover the amount of compensation from out of fine or otherwise, rather than sentencing the accused to jail - Simple Imprisonment till rising of the day and to pay a fine – (para 15, 16)

Judgment :

1. The appellant-complaint M/s. Apollo Tyres Ltd., seeks to assail the 15 acquittal judgements of even dated 28.06.2001 passed by the learned IV Metropolitan Magistrate, Hyderabad, in the respective private complaint cases vide C.C.Nos.56, 57, 54, 60, 59, 52, 61, 62, 65, 63, 58, 55, 64, 51 & 53 of 2001 filed by said complainant (under Section 138 of the Negotiable Instruments Act,1881-amended by Act 66 of 1988 (for brevity 'the Act'), which came into force w.e.f., 01.04.1989. The accused in these cases are no other than the area dealers of the products of the complainant, by name M/s. H.M. Tyres, represented by Mr. Hameed Muzafaruddin(A-1), said Muzafaruddin (A-2) individually, so also Mr. Adil Moizuddin (A-3). The complainant - M/s. Apollo Tyres Ltd., filed the complaints, rep. by its employee, duly authorised (Mr. K.G.Nair – the then District Commercial in-charge, on whose sworn statement, cognizance was taken on the 15 complaint cases for the offence under the provisions of the Act and later changed the authorisation to the then District Commercial in-charge Mr. Krishna Rao – P.W.1).

2. The case of the complainant in all these cases was that for the supply of the products, like Tyres, Tubes, etc., through its Branch Office at Hyderabad, for the orders placed by the accused, being their dealers, from time to time under the respective invoices, for the amounts covered thereunder for each of the invoices, the accused issued the respective cheques, total 43 in number, during the period between 29.4.2000 and 23.5.2000, for a total amount of Rs.12,09,111/-, when presented for collection returned dishonoured and for the statutory notice of demand intimating the dishonour and to pay, the accused issued a reply with false averments saying no liability and failed to pay, hence the respective complaints. It is pursuant to said complaints and from the sworn statement of the complainant’s authorised District Incharge by then, by name Mr. K.G.Nair, cognizance was taken on the 15 complaint cases for the offence under the provisions of the Act and after the accused were summoned and put in appearance from supply of copies under Section 207 of the Code of Criminal Procedure (for brevity, “The Cr.P.C.”), when questioned on substance of accusation under Section 251 Cr.P.C., they pleaded not guilty and were put to trial and in the course of trial, the complainant’s authorised employee viz., the then District Commercial in-charge Mr. Krishna Rao was examined as P.W.1 and placed reliance upon the respective authorisation, Certificate of Incorporation of the company, the respective invoices for the supply of stocks as ordered by the accused and the cheques issued pursuant to it and on presentation of the cheques returned dishonoured as per the respective Memos and the statutory Notice issued with acknowledgement and certificate of posting in proof of service and the reply of the accused and also the statement of account of the accused with the complainant of the relevant period. In most of the cases, besides Exs.P.1 and P.2, authorisation and Certificate of Incorporation of the company, respectively, are common, other exhibits are depending upon the number of cheques for invoices and dishonour Memos i.e., where there is a single cheque for single invoice with dishonour Memo, exhibited as Exs.P.3 to P.5, respectively, and if there are 3 cheques for 3 invoices with 3 dishonoured Memos, exhibited as Exs.P.3 to P.11, respectively, and therefrom the other 5 documents with continuation number for the notice with acknowledgement and certificate of posting as well as reply and account copy, either as Exs.P.6 to P.10 or as Exs.P.12 to P.16, respectively. It is after said evidence of complainant, the accused were examined under Section 313 Cr.P.C. by bringing to their notice the incriminating material against them and from recording their answers in pleading innocence, reiterating their defence version of nothing due to pay to honour the cheques


































































































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