IMPORTANT POINT
The denial of liability and refusal to pay the cheque amounts by the accused constituted a valid cause of action for filing the complaint under Section 138 of the NI Act, despite being filed before the notice period expired.

ORDER :

Accused Nos.1 to 3 in CC No.52958 of 2017 on the file of the learned LVII Additional Chief Metropolitan Magistrate, Mayohall Unit, Bengaluru (hereinafter referred to as ‘the Trial Court’ for brevity), have preferred Criminal Revision Petition No.615 of 2020, impugning the judgment of conviction and order of sentence dated 01.03.2018, convicting them for the offence punishable under Section 138 of the Negotiable Instrument Act (for short ‘the NI Act’) and sentencing accused Nos.2 and 3 to pay a fine of Rs.2,500/-each, in default, to undergo simple imprisonment for a period of three months each and directing accused Nos.1 to 3 to pay compensation of Rs.8,00,000/-to the complainant and in default, accused Nos.2 and 3 to undergo simple imprisonment for a period of one year each and holding that the assets of accused No.1 is liable for payment of compensation amount. The impugned judgment of conviction was confirmed vide judgment dated 26.06.2020 passed in Criminal Appeal No.25041 of 2018 on the file of the learned IV Additional City Civil and Sessions Judge, Mayohall Unit, Bengaluru (hereinafter referred to as ‘the First Appellate Court’ for brevity), while modifying the order of sentence i.e., accused Nos.2 and 3 to pay fine of Rs.4,00,000/-and in default to pay fine, to undergo simple imprisonment for a period of six months.

2. The complainant in CC No.52958 of 2017 before the Trial Court has preferred Criminal Revision Petition No.641 of 2020, impugning the judgment of the First Appellate Court, holding that the complaint in respect of Ex.P2 was premature and modifying the order of sentence passed by the Trial Court.

3. For the sake of convenience, the parties shall be referred to as per their ranks and status before the Trial Court.

4. Brief facts of the case are that, the complainant filed private complaint in PCR No.56466 of 2016 against accused No.1 -M/s. LEAD Consultancy & Engineering Services (India) Ltd., and its Director as accused Nos.2 and 3 alleging commission of offence punishable under Section 138 of NI Act. It is alleged that the complainant is the Diploma holder in Electrical Engineering having 33 years of experience. Accused No.1 is a Company incorporated under the Companies Act, 1956, engaged in consultancy services pertaining to Mechanical Electrical and plumbing designs etc.,. Accused Nos.2 and 3 are its Directors and they are in-charge and are responsible for its day-to-day affairs and administration of the Company, which was incorporated in the year 2008. Accused No.2 was knowing the complainant since four years and was aware of his expertise in the field. Both accused Nos.2 and 3 have approached the complainant expressing their desire to expand their consultancy service and sought for assistance and expertise from the complainant. Accordingly, the complainant joined accused No.1 -Company as ‘Director-Technical’ since 01.11.2010 as per the terms and conditions mentioned in the appointment letter. Considering the marketing skills of the complainant, his salary and other emoluments were increased periodically.

5. It is stated that, gradually, accused No.2 started adopting hostile attitude towards the complainant during mid 2016. There was an unpleasant work atmosphere in accused No.1 -Company. Therefore, the complainant thought of resigning from his job. Accordingly, on 01.08.2016 he submitted his resignation letter to accused Nos.2 and 3 through e-mail, giving three months notice, from the date of the mail. Accused No.2 replied to the said mail, accepting the resignation and appreciating the role of the complainant in improving the business of accused No.1. Accused No.2 in his mail dated 16.08.2016 while accepting the resignation of the complainant informed that he will be relieved on 31.08.2016. Accordingly, complainant returned all the company materials including the laptop which was provided to him.

6. The final employment settlement letter was signed by the complainant and accused No.2 on 31.08.2016 an