IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
Ram Prasanna Sharma, J.
SATGURU OXYGEN COMPANY - Appellant
Versus
ASHOK DUTTA - Respondent
Acquittal Appeal No. 432 of 2019
Decided On : 28-02-2020
Negotiable Instruments Act, 1881 - Section 118, 138, and 139 - Supply of oxygen cylinders - Legal notice – Appeal against acquittal - As per version of appellant/complainant appellant is a partnership firm represented by one partner and involved in activity of supply of oxygen cylinders on demand to various institution along with other companies - Appellant firm supplied oxygen cylinders to respondent company and in consideration respondent company issued a State Bank of India cheque signed by Managing Director of company- said cheque was deposited by appellant which was returned with endorsement of dishonored on account of insufficiency of fund - Notice was sent to Managing Director of respondent company for payment of cheque which was not paid therefore complaint was filed - Trial Court convicted respondent but in appeal Court of Additional Sessions Judge acquitted respondent - Appellant side adduced evidence of and produced documents - From evidence of appellant it is established that respondent drawn a cheque in favor of appellant which was submitted for clearance in State Bank of India Commercial Branch but same was returned due to insufficiency of fund – Held, Respondent is convicted under Section 138 of Act 1881- Date of issuance of cheque- appellant is entitled to interest to amount advanced by him- Accordingly respondent is sentenced to pay fine - (Rupees one lakh two thousand only) for offence under Section 138 of Act 1881- trial court shall make effort to liquidate amount as per provisions of Cr-P-C- It is made clear that respondent is liable on behalf of company for recovery of amount liability shall be discharged through assets of company - Respondent shall be sent to jail only when he avoids recovery from assets of company- His detention in jail is a mode of recovery and same is not satisfaction of liability therefore his liability shall be discharged only when he pays amount - from assets of company – Order accordingly
JUDGMENT
Ram Prasanna Sharma, J. - The appeal is directed against judgment dated 24.3.2018 passed by Additional Sessions Judge, Bilaspur (Chhattisgarh) in Criminal Appeal No. 232/2017 whereby the said Court acquitted the respondent for the offence under Section 138 of the Negotiable Instruments Act, 1881(for short 'the Act 1881').
2. As per the version of the appellant/complainant, the appellant is a partnership firm represented by one partner and involved in activity of supply of oxygen cylinders on demand to various institution along with other companies. The appellant firm supplied oxygen cylinders to the respondent company and in consideration, the respondent company issued a State Bank of India cheque No.775005 dated 01.8.2012 for Rs.72,021/- signed by Managing Director of the company. The said cheque was deposited by the appellant which was returned with endorsement of dishonoured on account of insufficiency of fund. Notice was sent to the Managing Director of the respondent company for payment of cheque which was not paid, therefore, complaint was filed. The trial Court convicted the respondent but in appeal, the Court of Additional Sessions Judge acquitted the respondent.
3. Learned counsel for the appellant submits as under:
(i) The appellate Court has failed to appreciate the presumption under Section 139 of the Act, 1881.
(ii) The appellant has filed extract of balance sheet duly audited by an auditor to show the name of the respondent as one of Sundry debtor, but the same is overlooked by the said Court.
(iii) The respondent has not denied the facts in his statement under Section 313 of the CrPC.
(iv) Notice was sent for payment of debt to the respondent as the Managing Director of the company, therefore, finding of the appellant Court may be set aside.
4. I have heard learned counsel for the appellant and perused the judgment impugned.
5. The first question for consideration before this Court is whether cheque for Rs.72,021/- was drawn by the respondent in favour of the appellant for discharge of debt, whether the cheque deposited in the bank for clearance was returned unpaid on account of insufficiency of fund in the account of the respondent and whether after legal notice the respondent has not returned the amount of cheque to the appellant.
6. The appellant side adduced evidence of Ashok Jha (PW-1) and produced documents Ex-P/1 to P/8. From the evidence of the appellant, it is established that the respondent drawn a cheque in favour of the appellant for Rs. 72,021/- which was submitted for clearance in State Bank of India, Commercial Branch Bilaspur on 22.9.2012, but the same was returned due to insufficiency of fund. Notice was issued to the respondent on 03.10.2012 but even after receiving the notice 06.10.2012, the amount was not paid. Version of this witness is supported by documents Ex-P/1 to P/8 and the same is unrebutted during cross-examination.
7. As per Section 139 of the Negotiable Instruments Act,1881, it shall be presumed, unless the contrary is proved, that the holder of a cheque received the cheque of the nature referred to in section 138 for the discharge, in whole or in part, of any debt or other liability. Section 118 of the Act, 1881 reads as under:
"118 Presumptions as to negotiable instruments. Until the contrary is proved, the following presumptions shall be made:
(a) of consideration that every negotiable instrument was made or drawn for consideration, and that every such instrument, when it has been accepted, indorsed, negotiated or transferred, was accepted, indorsed, negotiated or transferred for consideration;
(b) as to date that every negotiable instrument bearing a date was made or drawn on such date;"
8. Presumption is rebuttable, but from the evidence of the respondent side it is not rebutted and no evidence is adduced by the respondent to rebut the same. It is not a case where the respondent has not signed the cheque. A meaningful reading of the provisions of the Act, 1881
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