IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
V.Srinivas, J.
Duvvuri Venkata Ramana Murthy - Appellant
Versus
Sabbavarapu Mahalakshmi - Respondent
Criminal Revision Case No. 928/2011
Decided On : 11-03-2024
Negotiable Instruments Act - Dishonour of Cheque - Sec. 138 r/w.142 - Sec. 397 r/w.401 of Cr.P.C - Demand draft for compensation - Legal principles from Laxminivas Agarwal v. Andhra Semi-Conductors Pvt.Ltd., Bir Singh v. Mukesh Kumar, R.Vijayan vs. Baby and Another, Meters and Instruments Private Limited v. Kanchan Mehta
Fact of the Case:
The accused borrowed an amount and issued a cheque which was dishonoured. The trial court convicted and sentenced the accused. The appellate court confirmed the judgment. The accused filed a criminal revision case which was admitted and the sentence was suspended. The accused then brought a demand draft for the cheque amount and compensation to the complainant.
Finding of the Court:
The court referred to legal principles from various judgments and considered the realization of the cheque amount. The court set aside the conviction and sentence, acquitting the accused of the offence under Sec. 138 r/w.142 of N.I.Act.
Issues: Conviction and sentence under Sec. 138 r/w.142 of N.I.Act, realization of the cheque amount, demand draft for compensation
Ratio Decidendi: The court considered the legal principles from Laxminivas Agarwal v. Andhra Semi-Conductors Pvt.Ltd., Bir Singh v. Mukesh Kumar, R.Vijayan vs. Baby and Another, Meters and Instruments Private Limited v. Kanchan Mehta, and the realization of the cheque amount to set aside the conviction and sentence.
Final Decision: The court disposed of the Criminal Revision Case by setting aside the conviction and sentence, thereby acquitting the accused of the offence under Sec. 138 r/w.142 of N.I.Act. Interim orders granted earlier, if any, stand vacated. Miscellaneous applications pending, if any, shall stand closed.
JUDGMENT
1. Assailing the judgment dtd. 14/3/2011 in Crl.A.No.64 of 2009 on the file of the Court of learned I Additional Metropolitan Sessions Judge, Visakhapatnam, confirming the conviction and sentence imposed by the judgment dtd. 25/3/2009 in C.C.No.671 of 2006 on the file of the Court of learned Special Judicial Magistrate of First Class (Prohibition and Excise), Visakhapatnam, for the offence under Sec. 138 r/w.142 of Negotiable Instruments Act (hereinafter referred to as "N.I.Act"), the petitioner/accused filed the present criminal revision case under Sec. 397 r/w.401 of the Criminal Procedure Code, 1973.
2. The revision case was admitted on 19/4/2011 and the sentence of imprisonment imposed against the petitioner was suspended, vide orders in Crl.R.C.M.P.No.1390 of 2011.
3. The shorn of necessary facts are that:
i). On 15/7/2004, accused borrowed an amount of Rs.1, 00, 000.00 for his family expenses and to discharge sundry debts from the complainant by executing a promissory note and agreed to repay the same with interest @ 24% per annum. But, he did not repay the same.
ii). On receipt of notice, dtd. 25/11/2004 from the complainant, accused issued a cheque bearing No.006397 for Rs.1, 00, 000.00 on 6/12/2004 and the same was presented in Syndicate Bank, Dabagardens Branch, Visakhapatnam, but it was dishonoured and returned with an endorsement that 'payment stopped by drawer'.
iii). On that, complainant got issued a legal notice dtd. 27/12/2004, the same was received by the accused on 28/12/2004 and kept quiet. Hence, the complaint.
4. The complaint was taken on file and numbered as C.C.No.671 of 2006 on the file of the Court of learned Special Judicial First Class Magistrate (Prohibition and Excise), Visakhapatnam and after full-fledged trial, found the accused guilty of the offence under Sec. 138 r/w.142 of N.I.Act and sentenced him to undergo rigorous imprisonment of six (6) months and to pay compensation under Sec. 357(3) Cr.P.C to the complainant to a sum of Rs.1, 00, 000.00 (Rupees One Lakh only), which is equivalent to the impugned Ex.P.1 cheque amount, in default to suffer simple imprisonment of three (3) months.
5. Aggrieved by the said conviction and sentence imposed by the Trial Court, the petitioner/accused filed an appeal, vide Crl.A.No.64 of 2009, before the Court of learned I Additional Metropolitan Sessions Judge, Visakhapatnam and the same was dismissed, vide judgment dtd. 14/3/2011, by confirming the judgment of the Trial Court.
6. Against the said judgment of the first Appellate Court, the present criminal revision case was preferred by the petitioner/accused.
7. Now, pending the revision case, Sri P.Gnanateja, learned counsel representing Sri T.M.K.Chaitanya, learned counsel for the petitioner/accused and Sri M.Lalith Kumar, learned counsel representing Sri V.O.Raja Veer, learned counsel for the 1st respondent submits that the petitioner brought a demand draft, vide D.D.No.374203 dtd. 26/2/2024, for Rs.1, 00, 000.00, drawn in the name of 1st respondent/Smt.Sabbavarapu Mahalakshmi, W/o.Gnaneswara Rao, which is the cheque amount and ordered as compensation to the complainant by the trial Court in C.C.No.671 of 2006.
8. The said demand draft was received by the learned counsel for the 1st respondent and he reported no objection to consider the present revision.
9. Now, it is relevant to refer the judgment of this Court reported in Laxminivas Agarwal v. Andhra Semi-Conductors Pvt.Ltd., (2006) 1 ALD Crl.300 (A.P.). as well judgment of Hon'ble Supreme Court reported in Bir Singh v. Mukesh Kumar, (2019) 4 SCC 197. wherein at paragraph Nos.19 and 28 held as follows:
19. It is well settled that in the exercise of revisional jurisdiction under Sec. 482 of the Criminal Procedure Code, the High Court does not, in the absence of perversity, upset concurrent factual findings. It is not for the Revisional Court to re-analyze and re-interpret the evidence on record.
28. In R.Vijayan vs. Baby and Another, (2012) 1 SCC
Meters and Instruments Private Limited v. Kanchan Mehta
The court considered the compensatory nature of the offence under Sec. 138 of the Act, the realization of the cheque amount, and the legal principles from relevant judgments to set aside the convicti....
The presumption of debt under the Negotiable Instruments Act favors the complainant, and the accused must rebut this presumption, which was not done in this case.
The presumption of liability under Section 139 of the Negotiable Instruments Act requires the accused to provide credible evidence to rebut the claim of dishonor of a cheque.
The court confirmed that the burden of proof shifts to the accused to rebut the statutory presumptions once the complainant establishes a prima facie case under the N.I. Act.
The presumption of liability under Section 139 of the N.I. Act requires the accused to rebut the presumption once the issuance of the cheque is established.
The main legal point established is that the drawer of a cheque cannot take advantage of their own fault and must comply with the legal requirements under Section 138 of the Negotiable Instruments Ac....
The compensatory nature of proceedings under Section 138 of NI Act and the court's authority to modify the sentence and compensation amount based on relevant legal provisions.
The main legal point established in the judgment is the application of the presumption under Section 139 of the Negotiable Instruments Act and the importance of proving the contrary to rebut the pres....
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