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R.MALA
Kannan – Appellant
Versus
Andhra Cements Ltd. – Respondent


Advocates:
Counsel for the Parties:
For the Petitioner:Mr. V. Balu, Advocate.
For the Respondent: Served.

Judgement Key Points

Key Points: - The judgment holds that non-sending of a reply to the statutory notice can give rise to a presumption of guilt under Section 138 NI Act. [6000056440007] - The court considered that no reply was sent by the accused, he did not rebut the presumption under Sections 118 and 139 NI Act, and the cheque Ex.P2 was issued for discharging an existing liability. [6000056440007] - The cheque was dishonored for insufficient funds (Ex.P3), statutory notice issued (Ex.P4) with acknowledgment (Ex.P5), and the accused did not repay; thus, the presumption was proven and the accused found guilty under Section 138 NI Act. [6000056440002][6000056440008] - The connected sentences: two years' simple imprisonment and payment of Rs. 14,74,805 as compensation, with default six months’ imprisonment, affirmed. (!) - The Criminal Revision is dismissed and the judgment of conviction and sentence is confirmed; bail bonds canceled and steps to secure the remaining sentence are to be taken. (!) (!) (!) (!) (!)

What is the question of whether non-receipt of a reply to statutory notice under Section 138 of the Negotiable Instruments Act can give rise to a presumption of guilt?

What is the legal significance of Sections 118 and 139 of the Negotiable Instruments Act in this case, and whether the accused rebutted the presumption?

What is the outcome of the revision petition regarding conviction, sentence, and the validity of relying on non-filing of dealership in this case?


ORDER

R. Mala, J.—The Criminal Revision has been preferred against the judgment of conviction and sentence, dated 29.9.2005, in C.A.No.132/2005, on the file of the VI Additional Sessions Court, Chennai, whereby the revision petitioner/accused is guilty for the offence under Section 138 of Negotiable Instruments Act and sentenced him to undergo two years simple imprisonment and to pay the cheque amount of Rs.14,74,805 as compensation, in default in payment, to undergo six months’ simple imprisonment, confirming the order passed by the learned XXIII Metropolitan Magistrate, Saidapet, Chennai, in C.C.No.240/1998 on 7.4.2005.

2. The respondent/complainant preferred a complaint under Section 138 of Negotiable Instruments Act, stating that the revision petitioner is a dealer of cements and in the course of their business, he issued a cheque bearing No.311687 dated 30.6.1997 for Rs.14,74,805, which was marked as Ex.P2. When the cheque under Ex.P2 was presented for encashment and the same was returned as “Funds Insufficient”, which was marked as Ex.P3. A statutory notice was issued by the respondent/complainant on 10.7.1997 under Ex.P4 and an acknowledgement card received by the accused was



















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