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1996 Supreme(Guj) 120

Gujarat High Court
Judgename :R.R.Jain
SATISH JAYANTILAL SHAH - Appellant
Versus
PANKAJ MASHRUWALA - Respondent
CRIMINAL REVISION APPLICATION 190 of 1995
Decided On : 03/11/1996

Advocates Appeared: B.M.GUPTA, J.B.DASTUR, K.P.RAVAL, KIRAN ACHARYA

Headnote:

Negotiable instruments Act - Section 138 - Applications arise from Criminal Cases on file of Metropolitan Magistrate was pleased to hold applicant guilty for commission of offence punishable simple imprisonment for one month and to pay fine - Aggrieved by judgment and order of Magistrate applicant also preferred Criminal Appeal same were decided by Additional City Sessions Judge confirming lower Courts order - Aggrieved by concurrent finding of both Courts below applicant/original accused has preferred above Revision Applications - Applicant/original accused is dealing in chemical business and is sole proprietor of Sales Corporation opponent original complainant is also doing chemical business as also proprietor in name of agencies – Held, Court has not at all based its finding on evidence and therefore this contention has also no force in eyes of law - Court can raise presumption of dishonest intention and hold criminally liable a deterrent remedy - That offence this section shall be deemed to have been committed moment cheque is dishonored on being presented for realization -But since basically the dispute is of civil nature Legislature thought it wise to provide for a safety valve enabling drawer or maker of instrument to resolve grievance and get rid of criminal liability by making payment within stipulated period of days from receipt of notice as provided Negotiable Instruments Act - Issuance of notice is nothing else but a procedure enabling drawer of instrument to resolve grievance and get rid of criminal liability - If at all there is any irregularity in service of notice it would be a procedural irregularity and not illegality and shall not vitiate proceedings – Order Accordingly(Para 14)

R. R. JAIN, J.

( 1 ) THESE applications arise from Criminal Cases Nos. 1361 of 1992 and 1362 of 1992 on the file of Metropolitan Magistrate (Court No. 15), ahmedabad. In each case the learned Magistrate was pleased to hold the applicant guilty for commission of offence punishable under Sec. 138 of the Negotiable instruments Act and sentenced to undergo simple imprisonment for one month and to pay fine of Rs. 25,000. 00, in default to undergo further simple imprisonment for one month. Aggrieved by the judgment and order of the learned Magistrate dated 14-10-1994, the applicant also preferred Criminal Appeal Nos. 41 of 1992 and 42 of 1994. The same were decided by learned Additional City Sessions Judge (Court no. 12), Ahmedabad on 1-5-1995, confirming the lower Courts order. Aggrieved by the concurrent finding of both the Courts below, the applicant/original accused has preferred the above Revision Applications.

( 2 ) SINCE in both cases the parties are same and are also represented by same advocates and involve common question of law and facts, are heard and disposed of by this common order at notice stage on perusal of record and proceeding received from trial Court.

( 3 ) THE applicant/original accused is dealing in chemical business and is sole proprietor of Padmavati Sales Corporation whereas the opponent No. 1/original complainant is also doing chemical business as also proprietor in the name of Asim agencies.

( 4 ) ACCORDING to the complainant/opponent No. 1, in response to an oral order placed on 25-2-1992, goods worth Rs. 1,01,500. 00 was sold and delivered to the applicant/accused vide Invoice No. 104/91-92 dated 25-2-1992, Ex-4. The applicant/ accused gave cheque No. 384270 dated 8-4-1992 drawn on the Co-operative Bank of Ahmedabad, for Rs. 1,01,500. 00 towards payment of said invoice. Unfortunately, on being presented for realisation through opponent No. 1s banker, Nutan Nagrik sahakari Bank Ltd. , was returned dishonoured and, therefore, following due procedure prescribed under law filed Criminal Case No. 1361 of 1992 under Sec. 138 of Negotiable Instruments Act. Similarly, goods sold and delivered by opponent no. 1/original complainant to the applicant vide Invoice No. 105/91-92 dated 6-3-1992, Ex. 4, for Rs. 1,03,156. 00 the applicant/accused gave cheque No. 384258 dated 22-3-1992 drawn on the Co-operative Bank of Ahmedabad, for Rs. 1,03,156/ - towards payment of said invoice. But the same was also returned dishonoured when presented through Nutan Nagrik Sahakari Bank Ltd. for realisation and, therefore, the opponent No. 1/original complainant filed another Criminal Case No. 1362 of 1992 under Sec. 138 of the Negotiable Instruments Act.

( 5 ) ON appreciation of evidence adduced, the learned trial Judge came to conclusion that offence punishable under Sec. 138 of the Negotiable Instruments act has been committed by the applicant and thereby convicted as above in both cases.

( 6 ) ADMITTEDLY, original complaints have been filed in personal names without impleading the name of the trading concern under which both the parties are trading, that is, their proprietary concern. Mr. Gupta the learned Advocate for the applicants, has vehemently argued that since the cheques are given by the applicant proprietary concern in the name of proprietary concern of opponent No. 1 and, therefore, if at all any offence is committed, is committed by a proprietary concern against the complainant proprietor concern and as the complaint is filed in personal name, the same is not maintainable. On this count his arguments are two-folded : (I) The firm has to be indicted and then only the proprietor can be held guilty; (ii) In absence of impleading proprietary concern as complainant as well as accused, the application would not be maintainable.

( 7 ) IT is true that in these matters, the original complainant is doing business in the name of proprietary concern, Asim Agencies, and the accused is also doing business in the name of proprietary












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