IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
T. MALLIKARJUNA RAO, J.
Garapati Rama Mohana Rao – Petitioner
Versus
State of Andhra Pradesh – Respondent
Criminal Appeal No.1019 of 2016
Decided On : 23-08-2023
| Table of Content |
|---|
| 1. overview of the criminal appeal and parties (Para 1 , 2) |
| 2. factual basis of the complaint under n.i. act (Para 3 , 4 , 5 , 6 , 7) |
| 3. arguments presented by both parties (Para 8 , 9) |
| 4. court's observations on evidentiary issues (Para 10 , 11 , 12 , 13 , 14 , 15) |
| 5. legal parameters for cheque enforceability (Para 16 , 17) |
| 6. assessment of material alteration impact (Para 18 , 19) |
| 7. validation of appellate court’s conclusion (Para 20) |
| 8. final judgment and dismissal of appeal (Para 21 , 22) |
JUDGMENT :
(T. Mallikarjuna Rao, J.)
This Criminal Appeal is filed by the appellant, who was the 1st respondent/complainant in Criminal Appeal No.311 of 2013, on the file of Additional District and Sessions Judge, West Godavari District, Kovvur (for short, "Additional Sessions Judge"), challenging the judgment, dated 12.06.2014, whereunder the learned Additional Sessions Judge allowed the Criminal Appeal filed by the 2nd respondent/accused, setting aside the conviction judgment, dated 26.07.2013 in C.C.No.66 of 2012, on the file of Principal Junior Civil Judge, Kovvur (for short, "the trial Court"), under Section 138 of Negotiable Instruments Act, 1881 (for short, "N.I. Act").
2. The parties to this Criminal Appeal will hereinafter be referred to as arrayed before the trial Court.
3. The appellant herein, in the capacity of the complainant before the trial Court filed a complaint under Section 138 of N.I. Act r/w Section 200 of Cr.P.C.
4. The case of the complainant is that the accused borrowed Rs.1,00,000/- from him on 09.04.2009 for his family expenses and medical expenses and executed a promissory note in his favour promising to repay the same with interest at 24% per annum either to him or to his order on demand. Despite several requests from the complainant, the accused has been postponing the same using various excuses. This lead the complainant to file a suit in O.S.No.163 of 2012 against the accused. Subsequently, on 10.04.2012, the accused gave the complainant a Cheque (No.810128) amounting to Rs.50,000/-, drawn on State Bank of India, Kovvur, as a part payment. However, when the complainant presented the Cheque for collection at Vijaya Bank, Kovvur Branch, on 11.04.2012, it was returned on 16.04.2012 due to "insufficient funds". The complainant informed the same to the accused, but he did not fulfill the repayment. Later, the complainant sent a legal notice on 18.04.2012. Despite receiving the said notice on 23.04.2012, the accused neither provided any response nor repaid the owed amount.
5. The learned Principal Junior Civil Judge, Kovvur, took cognizance under Section 138 of N.I. Act. After the appearance of the accused and after furnishing copies of documents under Section 207 of Cr.P.C., he was examined under Section 251 of Cr.P.C. concerning the allegations in the complainant case, for which he denied the allegations, pleaded not guilty and claimed to be tried.
6. During the trial on behalf of the complainant, the complainant himself was examined as PW1 and marked Exs.P1 to P8. After the closure of the evidence of the complainant, the accused was examined under Section 313 of Cr.P.C. concerning the incriminating circumstances appearing in the evidence, for which he denied the same and stated that he has no oral or defence witnesses to prove his case.
7. The learned Principal Junior Civil Judge, Kovvur, convicted the accused for the offence under Section 138 of N.I. Act under Section 255 (2) of Cr.P.C. and sentenced him to suffer Simple Imprisonment for one year and to pay a fine of Rs.1000/-, in default, to suffer Simple Imprisonment for three months. Aggrieved by the judgment, the unsuccessful accused filed Criminal Appeal No.311 of 2013 before the learned Additional District and Sessions Judge, Kovvur, which was allowed by setting aside the trial Court judgment. Felt aggrieved, the complainant filed the present Criminal Appeal.
8. Sri Nimmagadda Satyanarayana, learned counsel for the appellant, would contend t
Point of law: Negotiable Instruments - when a cheque is issued for a valid consideration with no dispute regarding the signature, amount and name, it cannot be said that, putting a date on the cheque....
The burden of proof on the accused in cases under Sec. 138 of the N.I. Act, the presumption of innocence, and the need for compelling reasons to interfere with an acquittal.
Dishonour of cheque – Mere non-filing of any suit by complainant to recover amount due under promissory note does not entitle accused to claim order of acquittal.
A dishonored cheque primarily for insufficient funds establishes liability under Section 138, while secondary reasons like signature discrepancies are irrelevant unless intent to defraud is proven.
The main legal point established in the judgment is the importance of proving the dishonor of a cheque due to insufficient funds, the presumption of the cheque being issued against a debt, and the ad....
The central legal point established in the judgment is the interpretation and application of Section 138 and Section 87 of the Negotiable Instruments Act in determining the validity of a complaint un....
The main legal point established in the judgment is the importance of complying with statutory requirements, including the issuance of notice within the limitation period for the first presentation o....
The presumption under Section 139 of the NI Act applies unless substantively rebutted, and any alteration in the cheque must be proven materially by the accused.
Technical errors in complaint correctable; statutory presumption under Sections 118/139 NI Act holds unless rebutted with evidence.
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