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2008 Supreme(Bom) 1036

In the High Court of Bombay at Goa
THE HONOURABLE MR. JUSTICE R.C. CHAVAN
M/s. Paul Dias and Sons by its partner, Mr. William Dias – Appellant
Versus
M/s. SDS Shipping Pvt. Ltd., by its Managing Director - Respondent
Criminal Appeal No.23 of 2007
Decided on : 22-07-2008

Advocates appeared: For the Appellant:A.F. Diniz, Advocate. For the Respondent:A. Monteiro, Advocate.

Headnote:Criminal Procedure Code, 1973 - Section 384-Appeal against acquittal-Accused acquitted of offence punishable under Section 138 of Negotiable Instruments Act-Accused/company issued two cheques for Rs. 2,00,000/- each towards supply of ship stores to complainant/ company-Dishonored on presentation for encashment-Notice of demand by registered post issued by complainant-No payment made by accused-Complaint- Evidence led by parties-Magistrate acquitted accused holding complainant’s failure to prove ingredients of offence-No evidence to show any outstanding dues towards which a sum of Rs. 2,00,000/- can be appropriated- Complainant itself admitted that sum of Rs. 2,00,000/- received-Cause of action extinguished-A sum of Rs. 2,00,000/- withheld by accused since year2002 till today-Appeal allowed-Acquittal of accused-respondent set aside-Accused sentenced to pay fine of Rs. 5000/- and compensation of Rs. 3,00,000/-.

       Negotiable Instruments Act, 1881 - Section 138 - Dishonour of cheque - Complaint - Two cheques issued by accused - First cheque presented by complainant for encashment - Dishonou red for want of funds - Said cheque again presented alongwith other cheque for clearance - Both cheques dishonoured - Notice issued by complainant to accused - Payment made towards amount of first cheque - Amount under another dishonoured cheque not paid by accused within 15 days of demand notice - Conviction of accused not improper.

       Negotiable Instruments Act, 1881 - Section 138 - Dishonour of cheque - Demand notice - Issuance of - No format prescribed for - Complainant informed accused about dishonour of cheque and requesting him to clear cheque through e-mail sent by him - E-mail qualifies to be a notice under Section 138 of Act.

Judgment :-

This appeal by the complainant takes exception to judgment rendered by the learned Judicial Magistrate, First Class, Vasco in Criminal Case No.536/04 whereby the learned Magistrate acquitted the respondent of the offence punishable under section 138 of the Negotiable Instrument Act.


2. The facts which led to filing of the complaint are as under:


The complainant/company are Ship Chandlers who provide various ship stores to ships, which call at Mormugao Port. The respondent/company has been arranging for supply of such stores through the complainant as Agents of Russian Vessel A.


A. Sidorenko. The respondent has issued cheques No.353919 and 353921 dated 22.08.2003 and 30.09.2003 drawn on Centurion Bank at Vasco for Rs.2,00,000/-each towards ship stores supplied to the said Russian Vessel A.A. Sidorenko. The complainant presented the first cheque No.353919 for clearance on 25.08.2003 through their bankers, which was returned back for want of funds. It was again presented on 14.10.2003 and was once again returned for want of funds. This cheque, alongwith other cheque No. 353921, were again presented on 19.02.2004 and both the cheques bounced for want of funds. On 18.03.2004, the complainant issued a notice by registered post acknowledgment due informing the accused of dishonour of cheques and making a demand of money at the earliest. This notice was received by the accused on 20.03.2004 and was replied by letter dated 20.3.2004 acknowledging that the amount was due and promising payment after the Russian elections were over. Since the payment did not come through, the complainant filed a complaint before the learned Magistrate.


3. Upon issuance of process, accused applied for being represented by one Dinesh Jamsandekar, Accounts Manager in place of the Managing Director. The Trial Court rejected his application leading the accused to file Revision, which was allowed by the Sessions Judge, allowing Dinesh Jamsandekar to represent the accused.


4. Upon considering the evidence tendered, the learned Magistrate held that the complainant had failed to prove the ingredients of the offence punishable under section 138 of the Negotiable Instrument Act and proceeded to acquit the respondent, which has led to filing of the present appeal.


5. I have heard Mr. Diniz, the learned counsel for the appellant and Mr. Monteiro, the learned counsel for the respondent. With the help of of both the learned counsel, I have gone through the complaint, documents and the evidence tendered. The learned counsel for the appellant submitted that the learned Trial Magistrate should not have held against the complainant in face of reply to the notice of dishonour dated 18.3.2004 sent under the signature of Dinesh Jamsandekar. The contention of the learned counsel for the respondent is that Dinesh Jamsandekar may have been the Accounts Manager, but had no authority to accept liability since he is not in charge and responsible for the conduct of the business of the company. What Dinesh Jamsandekar has done by notice dated 18.3.2004 is not acceptance of liability on behalf of the company, but merely acknowledgment on the basis of the material and the accounts books in his possession, that the company was liable to make payment towards the cheques which were dishonoured. The learned counsel for the respondent submitted that the reply dated 22.3.2004 merely acknowledges the liability to pay legitimate dues and not the dues under the cheque.


6. This letter dated 22.3.2004 is in response to the notice dated 18.3.2004. The Advocate who sent the notice was careful in giving the reference No.LN/PJA/14/04. It would be seen that the reply of Dinesh Jamsandekar specifically quotes this reference and therefore, it cannot be said that the communication was made in a vacuum. It was specifically in response to the notice and hence if the Accounts Manager disputed the liability to pay the amount due under the cheques, the Manager ought to have said so. He should























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