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2023 Supreme(AP) 1620

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

Headnote:(A) Negotiable Instruments Act, 1881 - Section 138 - Criminal Procedure Code, 1973 - Sections 200 and 251 - Appeal challenging acquittal - Appellant alleged that accused borrowed money, issued a cheque, which was dishonored - Trial Court convicted, but Appellate Court set aside finding material alteration in cheque date - Evidence indicated complaint was not maintainable due to the cheque's issuance past the limitation period. (Paras 1-21)

(B) Legal Principles - Cheque must be presented within stipulated period of validity for enforceability; material alterations invalidate the cheque under Section 87 of N.I. Act (Paras 15 and 18)

Facts of the case:
Appellant alleged that the accused borrowed money and issued a cheque which was dishonored due to insufficient funds. After the trial, the accused was convicted, but the Appellate Court found alterations in the cheque's date.

Findings of Court:
The acquittal of the accused was upheld; the cheque was presented beyond the limitation period.

Issues: Whether the Appellate Court erred in acquitting the accused; validity of the cheque with respect to material alterations and limitation.

Ratio Decidendi: Court found that material alteration and late presentation of cheque rendered the complaint invalid; the timing of the complaint’s filing and the evidence surrounding the cheque's validity were crucial.

Result: Criminal Appeal is dismissed.

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

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