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2006 Supreme(Kar) 157

Karnataka High Court
Sarathi Leasing Finance Limited - Appellant
Versus
B.Narayana Shetty - Respondent
Decided On : 02-16-06
Criminal Revision Petition : 427 of 2004

Advocates:
G.BALAKRISHNA SHASTRI, R.Lokesh

Headnote:Criminal Procedure Code, 1973 -Complaint of an offence -Section 190 -Complaint of an offence - Who can set eriminal law in motion. Settled Principle: On a combined reading of Sections 4(2) and 190 CrPC it is clear that anyone can set the criminal law in motion by filing a complaint of facts constituting an offence before a Magistrate entitled to take cognizance under Section 190 and no Court can decline to take cognizance on the sole ground that the complainant was not competent to file the complaint. But where any special statute prescribes offences and makes any special provision for taking cognizance of such offences under the statute, the complainant requesting the Magistrate to take cognizance of the offence must satisfy the eligibility criterion prescribed by the statute [(1983) 4 SCC 701].

       Cases Referred: Followed: 2001 (6) Kar. L.J 193; (1983) 4 SCC 701; (2002) 1 SCC 234; 1999 Crl. L. J. 1032.

       Indian Penal Code, 1860 -Offence under -Section 420 -Offence under - Complaint for - Settled principle. See, Criminal Procedure Code, 1973 - Section 190.

       Cases Referred: Followed: 2001 (6) Kar. L.J 193; (1983) 4 SCC 701; (2002) 1 SCC 234; 1999 Crl. L. J. 1032.

       Negotiable Instruments Act, 1881 -Sentence -Section 138 -Sentence - Cheque amounty - Rs 65,200/- - Drawer sentenced to pay a fine of Rs 80, 500/- - Rs 80,000/- to be paid to the payee as compensation.

       Negotiable Instruments Act, 1881 -Complaint on behalf of a company - Section 138 -Complaint on behalf of a company -Who can set law in motion - Need of authorisation. [A. C. Kabbin, J]: In a case of complaint on behalf of a Company for an offence punishable under Section 138 of the Negotiable Instrurnents Act filed by one of its officers or the Managing Director, the question of authorisation to such person to file the complaint arises only if the accused takes up a specific plea that the Company did not intend to prosecute him for the offence or that there is some material before Court to indicate that the complainant-Company has no intention to prosecute the accused. Since a responsible officer or office bearer of the company can set the law into motion by filing a complaint on behalf of a company, disclosing an offence under Section 138 of the Negotiable Instrurnent Act against the Company, the question whether such officer had been specifically authorised to file the complaint on behalf of the Company does not arise at all. In that view of the matter, the Learned Sessions Judge was wholly in error in allowing the appeal and setting aside the conviction solely on the ground that the revision petitioner had not produced the proper authorization.

       Cases Referred: Followed: 2001 (6) Kar. L.J 193; (1983) 4 SCC 701; (2002) 1 SCC 234; 1999 Crl. L. J. 1032.

A. C. KABBIN, J.

( 1 ) THIS revision petition is directed against the judgment dated 27. 12. 2003 passed by the Learned iii Additional Sessions Judge, Dakshina Kannada District, Mangalore in Criminal Appeal no. 42/2001, by which the conviction of the respondent in Judgment dated 27. 2. 2001 recorded by the Learned JMFC (IV Court) Mangalore in C. C. No. 215/2000 for the offence punishable under Section 138 of the Negotiable Instruments Act and consequent sentence have been set aside. The revision petitioner/complainant prays for resorting the conviction and sentence imposed by the Learned Trial Judge.

( 2 ) THE revision petitioner is a company represented by its Managing Director. In the complaint filed on behalf of the said Company, it was alleged that one Vasanthkumar had borrowed a sum of Rs. 65,000/- from the revision petitioner and for repayment of the balance of the said amount with interest thereon he, (the respondent/accused), as co-obligant, had issued a cheque for rs. 65,200/ -. The said cheque was dishonoured when it was presented for encashment. The complainant/company claimed that despite service of notice of dishonour of cheque, the respondent having failed to pay the amount the latter had committed an offence punishable under Section 138 of the Negotiable Instruments Act.

( 3 ) A contention was taken on behalf of the respondent accused in the Trial Court that though his signature was on the cheque, contents of the cheque had not been filled by him and that he had not stood surety for repayment of any loan taken by Vasanthkumar. On consideration of the evidence, the Learned Trial Judge held that issuance of cheque for repayment had been proved and that ingredients of the offence under Section 138 of the Negotiable Instruments Act having been disclosed, the accused/respondent was liable to be convicted of the offence punishable under Section 138 of the Negotiable Instruments Act. Consequently, he convicted the respondent and imposed a sentence of simple imprisonment for 3 months and a fine of Rs. 500/- in default to undergo simple imprisonment for one month. It was further directed that if the fine amount was realized, an amount of Rs. 80,000/- be paid to the complainant as compensation.

( 4 ) THAT judgment of conviction and sentence was challenged by the respondent in Criminal appeal No. 42/2001. In appeal, the accused sought for cross-examination of the complainant and also permission to adduce evidence. That prayer was allowed by the Learned Appellate judge. After cross-examining the complainant, the accused examined himself as D. W. 1. A vague contention was taken by the respondent before the Appellate Court that he had kept certain signed blank cheques in his office and that one of such cheques, might have been taker by Vasathkumar. In effect his contention was that the said Vasanthkumar has stolen the cheque and had given it to the complainant. It was also contended by him in his evidence before the appellate Court that when he asked Vasanthkumar about cheque leaves, the latter told that nothing would happen. Rejecting his contention, the Learned Sessions Judge, held that the cheque had been issued for discharge of the loan.

( 5 ) THERE was another contention taken by the respondent. It was that there was no proper authorization by the company empowering the Managing Director to file the complaint and to conduct the case. That contention was upheld by the Learned Sessions Judge relying on the observation of this High Court in Dr. Uma Gangadhar vs Classic Coffee and Spices Pvt. Ltd. Chickmagalur (2001 (6) Karnataka Law Journal 193) to the effect that in order to launch prosecution or any legal proceedings on behalf of the company, it is just and necessary that there should be a valid sanction and authorisation by the company and merely by designation of a Manager, it would be impermissible in law to lauch the prosecution without a specific authorisation.

( 6 ) IN the result, holding that there was no proper au





















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