IN THE HIGH COURT OF JUDICATURE AT CALCUTTA
ANANDA KUMAR MUKHERJEE, J.
M/s. Francis Klein & Co. Private Ltd. - Appellant
Versus
The State of West Bengal & Others - Respondents
C.R.A. No. 222 of 2006
Decided On : 11-05-2022
Negotiable Instrument Act - Acquittal under sections 138/141 - 138/141 of the Negotiable Instrument Act - Summary of the acts and sections referenced and discussed by the court: The court discussed the requirements under section 138 of the N.I Act, the mandatory requirement of issue of notice to the drawer, and the presumption of service of notice. The court also considered the admissibility of documents and the mode of proof, emphasizing the importance of raising objections at the appropriate time. The court relied on legal principles established in previous cases to support its decision.
Fact of the Case:
The appellant company filed a complaint against respondents no. 2 to 5 for dishonoring a cheque. The court found that the cheque was dishonored, a demand notice was issued and served upon the accused, and the accused failed to make any payment within the statutory period of notice.
Finding of the Court:
The court found the accused guilty of the offence punishable under section 138/141 of the Negotiable Instrument Act and convicted them, sentencing the accused company and its three directors to a fine of Rs. 8,00,000/- jointly and severally.
Issues: The issues included the admissibility of documents, the requirement of issue of notice to the drawer, and the presumption of service of notice.
Ratio Decidendi: The court held that once a document is admitted in evidence without objection, reliance must be placed upon its content unless disputed. The court also emphasized the importance of raising objections at the appropriate time.
Final Decision: The appeal was allowed, the judgment of acquittal was set aside, and the accused were convicted for the offence punishable under section 138/141 of the Negotiable Instrument Act.
JUDGMENT :
1. Instant appeal under section 378 (4) of the Code of Criminal Procedure, 1973 has been filed by the appellant against Respondent no. 1 to 5 being aggrieved and dissatisfied with the judgment and order dated 29.08.2005 passed by learned Metropolitan Magistrate, 13th Court Calcutta in Case No. C-5021 of 2000, thereby acquitting the accused/ opposite party no. 2 to 5 of the charges under sections 138/141 of the Negotiable Instrument Act.
2. The appellant preferred an application praying for Special Leave to Appeal against the impugned judgment and order and the same was registered as C.R.M No. 180 of 2006. The same was allowed on 28.02.2006 and Special Leave was granted to the appellant company to file the appeal.
3. In gist, the fact of appellant’s case is that the appellant is a company incorporated under the companies Act, 1956 having its place of business at 13A, Government Place East, Kolkata-700 069. Respondent No 2 is a company incorporated under the companies Act, 1956 having its place of business at 10, Canning Street, Kolkata and Respondents no. 3 to 5 are the Directors of Respondent no. 2 Company.
4. A complaint was lodged on behalf of the appellant company before the court of learned Chief Metropolitan Magistrate, Calcutta disclosing an offence committed by Respondents no. 2 to 5, punishable under section 138/141 of the Negotiable Instrument Act (herein after referred as the N.I. Act).
5. In discharge of their existing liability in respect of the loan taken from the Appellant company, Respondents no. 2 to 5 issued an account payee cheque bearing no. 212779 dated 29.5.2000 for Rs. 5,12,188/- drawn on Bank of India, Calcutta Overseas Branch, in favour of the appellant company.
6. The said cheque was placed for encashment but was returned dishonoured on 24.8.2000 with the remark “Exceeding Arrangement”. The appellant company thereafter sent a Notice dated 2.9.2000, addressed to the Respondents no. 2 to 5, informing them that the cheque was dishonoured and asked them to make payment of the cheque amount within 15 days from the date of receipt of the said notice.
7. The Respondents no. 2 and 4 received the said notice on 6.9.2000 while Respondent no. 3 and 5 received the notice on 15.9.2000 but failed to pay the amount claimed. Under such circumstances Respondents no. 2 to 5 committed an offence punishable under section 138/141 of the Negotiable Instrument Act. On 3.10.2000 learned Chief Metropolitan Magistrate, Kolkata on the basis of complaint was pleased to take cognizance of the offence and after examining the authorized representative of the appellant company was pleased to find that a prima facie case was made out against Respondents no. 2 to 5 under sections 138/141 of the Negotiable Instrument Act and issued process against them.
8. Respondents no. 2 to 5 thereafter appeared before the court and the case was transferred to the court of Learned 13th Metropolitan Magistrate, Kolkata for disposal. On 25.9.2001, Respondents no. 2 to 5 were examined under section 251 of the Code of Criminal Procedure and the substance of the accusation were read over and explained to them to which they pleaded not guilty and claimed to be tried.
9. In order to prove their case appellant/ complainant examined three witnesses namely Abhijit Sarkar, employee of the States Bank of India, the banker of Respondents no. 2 to 5, as PW-1. Chandrasekhar Behara, Manager, Global Trust Bank, Chowringhee Branch, Calcutta, banker of the appellant company as PW-2 and Amarendra Nath Chatterjee, constituted attorney of the appellant company as PW-3.
10. Respondents no. 2 to 5 were examined under section 313 of the Code of Criminal Procedure and were confronted with incriminating circumstances for their explanation.
11. The Respondents no. 2 to 5 examined one defence witness Dipti Prakash Show as DW-1.
12. After considering the evidence on record learned Metropolitan Magistrate 13th Court, Calcutta was pleased to pass an order on 29.8.2005 wherein he hel
The main legal point established in the judgment is the importance of timely objections and the admissibility of documents in evidence.
The main legal point established in the judgment is the proper service of demand notice under Section 138 of the Negotiable Instrument Act, and the consequences of such service on the acquittal of th....
The judgment highlights the significance of a valid notice as the foundation of a case under Section 138 of the N.I. Act and the necessity to comply with the statutory requirements for the notice to ....
For a conviction under Section 138, the complainant must prove both enforceable debt and properly served demand notice; failure to do so leads to acquittal.
The presumption of liability under Section 139 of the Negotiable Instruments Act can be rebutted if the accused proves non-receipt of the demand notice, which is essential for prosecution under Secti....
The failure to provide evidence of sending a legal notice under Section 138 of the Negotiable Instruments Act invalidates the complaint, leading to acquittal.
A complainant's failure to send a statutory notice within the prescribed timeframe as outlined in S.138 does not invalidate a complaint if proper payment receipts are demonstrated.
The main legal point established in the judgment is the importance of serving a legal notice at the correct address and the presumption of service when the notice is sent by registered post with the ....
The presumption of service of legal notice under Section 27 of the General Clauses Act applies, and a complaint under Section 138 of the Negotiable Instruments Act is premature if filed before the st....
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