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2007 (1) Bankmann 531
KARNATAKA HIGH COURT
H.V.G. Ramesh, J.
J. Ramaraj — Petitioner
versus
Iliyaz Khan — Respondent
Criminal Revision Petition No. 597 of 2004, C/w 598 and 599 of 2004
Decided on 27-10-2006

Advocates:
Counsel for the Parties:
For the Petitioner:R. Narayana, Advocate.
For the Respondent:A.H. Bhagawan and A.N. Radhakrishna, Advocate.

Headnote:(i) Negotiable Instruments Act, 1881—Sections 138 and 139—Dishonour of cheque—Presumption—Once the cheque is issued, duly signed by petitioner, presumption goes against him as per Section 139 of the Act. (Para 9)

       (ii) Negotiable Instruments Act, 1881—Sections 138 and 141—Dishonour of cheque—Offence by company—Company alone or person in-charge of business of company alone or both can be prosecuted for offence under Section 138 of Negotiable Instruments Act.

       (iii) Negotiable Instruments Act, 1881—Sections 28 and 138—Dishonour of cheque—Liability of agent signing cheque—Agent will be liable in the absence of any notice to payee of cheque that he is only acting as an agent on behalf of Principal. (Para 13)

       Facts of the case:

       (A)These revisions have been filed by petitioner against order passed by Sessions Judge, Kolar dismissing his appeals against the orders of Magistrate convicting and sentencing him for offence punishable under Section 138 of Negotiable Instruments Act.

       (B)Petitioner/accused purchased potatoes worth Rs. 25 lacs on various dates from respondent/complainant and in payment for the same issued three cheques aggregating Rs. 25 lacs having different dates. The complainant presented these cheques for payment on 15.9.2001 but all the three cheques were dishonoured for want of sufficient funds on 29.9.2001.

       (C)The complainant issued statutory notice demanding payment. Petitioner neither paid the amount nor replied to the notice.

       (D)Complainant filed three separate complaints in respect of three cheques before JMFC, Kolar. Petitioner put in his appearance and contested the cases. Magistrate after holding trial in all the three cases independently convicted the petitioner for offences under Section 138 of N.I. Act and sentenced him to undergo simple imprisonment for a period of one and to pay a fine of Rs. 3,000 in addition to payment of compensation equal to amount of cheques.

       (E)Petitioner preferred appeals against aforesaid orders of JMFC before Prl. Sessions Judge Kolar who after hearing the parties dismissed the appeals. Hence these revision petitions.

       (F)The petitioner took various defences such as there was no transactions of purchase of potatoes, cheques have been signed by petitioner as agent of

       M/s. Rajappoo Ammal Trading Co. and principal not being impleaded as a party, complaint is not maintainable, and that petitioner was coerced to sign the cheques.

       (G) Finding of Court

       Mere denial of issue of cheques would not be sufficient. Once the cheque is issued duly signed by petitioner, presumption goes against him as per Section 139 of the N.I. Act. In case of offence by company, both the company and person in-charge or separately. No element of coercion is established by petitioner against respondent nor was it brought to the notice of complainant that petitioner was acting as an agent of company.

       Result: Revision petition dismissed. Order of sentence modified.

Judgment

H.V.G. Ramesh, J. —These three revisions have been filed by the petitioner being aggrieved by the Orders passed by the Prl. Sessions Judge, Kolar in Crl. A. Nos. 99/03,98/03 and l00/03 wherein the learned Sessions Judge dismissed the appeals while confirming the Order of the learned Magistrate in convicting and sentencing the accused/petitioner for the offence punishable under Section 138 of the Negotiable Instruments Act.

As it transpires from the records, complaint was filed under Section 200 of Cr.P.C. for the offence punishable under Section 138 of the Negotiable Instruments Act against the petitioner herein stating that the complainant/respondent is a commission agent dealing in supply of potatoes on commission basis wherein the accused/petitioner used to place Orders for supply of potatoes, as per the request and requirement, the complainant used to supply potatoes to the accused/petitioner as and when required. Further, during the month of July and August 2001 the accused/petitioner purchased potatoes worth Rs. 10,00,000, Rs. 5,00,000 and Rs. 10,00,000 respectively on different dates and in lieu of discharge of the debt he issued three cheques bearing Nos. 145810, 145809 and 145811 dated 28.7.2001, 16.7.2001 and 6.8.2001 respectively drawn on Tamil Nadu Mercantile Bank Ltd., Tuticorin. According to the complainant/respondent, while issuing cheques the petitioner had assured that he has got sufficient funds in his account. Later, petitioner requested him to present the cheques after 15.9.2001 as there was shortage of funds, in his account, as such, the complainant presented those cheques subsequent to 15.9.2001 and the said cheques were returned on 29.9.2001 for want of sufficient funds and thereby the three cheques were dishonoured. Thereafter, on 12.10.2001, the complainant got issued a legal notice to the petitioner. The notice was sent through registered post as well as through certificate of posting by demanding the payment of amount. Further stating that petitioner neither paid the amount nor replied to the legal notice, the complainant filed three separate complaints in respect of three cheques before the J.M.F.C., Kolar. Subsequently, the accused/petitioner put his appearance and contested the case. The learned Magistrate while dealing with the three cases independently after having held the trial convicted the accused for the offence under Section 138 of the Negotiable Instruments Act and sentenced to undergo S. I. for a period of one year and to pay a fine of Rs. 3,000, in default to pay the fine, to undergo S. I. for another three months. Accused was also directed to pay compensation of Rs. 10,00,000 each in respect of two cheques and Rs. 5,00,000 in respect of one cheque. As against the said Orders, appeals were preferred before the Prl. Sessions Judge, Kolar, who in turn, after hearing the parties, while confirming the Order of the learned Magistrate, dismissed the appeals. Hence. these revisions by the petitioner.

2. Heard the Counsel for the petitioner and the Counsel representing the respondent in all the cases. Since the parties are common, all the three matters are taken together for disposal.

3. It is the submission of the learned Counsel for the petitioner that no such transaction has taken place in the market yard. Admittedly, the complainant is a commission agent, when such being the case he should have shown the proof of having supplied the potatoes from the market yard. Even as per the Karnataka Agriculture Produce Market Regulation Act, the complainant has not maintained any accounts for having supplied potatoes to the accused and that he has not paid the tax due to A.P.M.C. and procuring the goods outside the market yard cannot be believed. Further submitted that the cheques have been signed by the petitioner as an agent of the company and as per Section 28 of the Negotiable Instruments Act, the petitioner cannot be made liable for the supply of potatoes if any to the company since he is





































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