IN THE HIGH COURT OF KERALA
K. Harilal, J.
Jayakumar – Appellant
Vs.
Devi Vilasom Kettuthengu Sangham and Ors. – Respondents
Crl. R.P. No. 4635 of 2006
Decided On : 28-07-2015
Locus Standi - Negotiable Instruments Act - Section 138, Section 142 - The court discussed the maintainability of a complaint under Section 138 of the Negotiable Instruments Act, emphasizing the importance of locus standi for filing a complaint. It highlighted the statutory provisions of Sections 138 and 142, which grant the right to file a complaint to the payee or holder in due course of the dishonoured cheque only. The court concluded that the complainant, who was neither the payee nor the holder in due course, had no locus standi to file the complaint, rendering the conviction and sentence unsustainable under law.
Fact of the Case:
The accused was convicted under Section 138 of the Negotiable Instruments Act for dishonouring a cheque issued to a society. The accused challenged the conviction and modified sentence, arguing that the complainant society had no locus standi to file the complaint.
Finding of the Court:
The court found that the complainant society, being neither the payee nor the holder in due course, had no locus standi to file the complaint under Section 138 of the Negotiable Instruments Act. Consequently, the conviction and sentence imposed on the accused were deemed unsustainable under law, leading to the acquittal of the accused.
Issues: The main issue was the maintainability of the complaint under Section 138 of the Negotiable Instruments Act, focusing on the complainant's locus standi to file the complaint.
Ratio Decidendi: The court emphasized the statutory provisions of Sections 138 and 142 of the Negotiable Instruments Act, which grant the right to file a complaint to the payee or holder in due course of the dishonoured cheque only. It concluded that the complainant society, not being the payee or holder in due course, lacked locus standi to file the complaint.
Final Decision: The revision petition was allowed, and the accused was acquitted of the offence under Section 138 of the Negotiable Instruments Act.
K. Harilal, J.
1. The revision petitioner is the accused in CC No. 7/2002 on the files of the Judicial First Class Magistrate's Court, Vaikom. The above complaint was filed by the first respondent herein alleging the offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (for short, 'the Nl Act'). The complainant's case is that the accused purchased coconuts from the complainant/Society and towards the price of the coconuts purchased upto July, 2000, a sum of Rs. 16,000/- was due from the accused to the Society and in discharge of the said debt, the accused issued Ext. P1 cheque in favour of the Secretary of the Society, Sri. Karunakaran Nair and, when the cheque was presented for encashment, it was dishonoured and returned for want of sufficient funds. So also, despite the receipt of notice under Section 138(b), of the Nl Act, the accused has not repaid the cheque amount. After trial, the learned Magistrate found the revision petitioner guilty of the said offence and convicted thereunder. He was sentenced to undergo simple imprisonment for two months and to pay a compensation of Rs. 18,000/- to the complainant under Section 357(3) of the CrPC and in default, to undergo simple imprisonment for 15 days. Though, he had challenged the conviction and sentence in Crl A No. 259/04 before the Additional Sessions Court (Special), Kottayam, after re-appreciating the entire evidence on record, the learned Sessions Judge also concurred with the verdict of guilty and confirmed the conviction; but modified the sentence. The substantive sentence of simple imprisonment for two months was reduced and modified to simple imprisonment for one day till rising of the Court and retained the rest of the sentence as such without any interference. The legality and propriety of the concurrent findings of conviction and modified sentence are under challenge in this revision petition.
2. Though, this revision petition is filed on various grounds challenging the concurrent findings of conviction and modified sentence on merits, the learned Counsel for the revision petitioner mainly canvassed the point that the complainant/Society has no locus standito file the present complaint alleging the dishonour of Ext. P1 cheque, which was issued in favour of one Karunakaran Nair, who represented the complainant Society. According to the learned Counsel, the complainant is neither the payee nor the holder in due course. A complaint under Section 138 of the Nl Act can be filed either by the payee or the holder in due course. In short, Ext. P1 cheque is a personal cheque issued to Karunakaran Nair and not to the Society as contended by the complainant. Therefore, the complaint itself was not maintainable as the complainant had no locus standi to file such a complaint. But the Court below miserably failed to consider the maintainability of the complaint under law.
3. Per contra, the learned Counsel for the first respondent advanced arguments to justify the findings in the impugned judgments under challenge. The learned Counsel for the first respondent submits that the complaint was filed on the basis of a resolution passed by the complainant/Society. Therefore, even though the payee in the cheque is Karunakaran Nair, the complainant/Society has locus standi to file the present complaint on dishonour of the cheque which was issued in favour of Karunakaran Nair. It is also contended that a complaint can be filed on the dishonour of a cheque which was issued in discharge of any other liability also. In that view of the matter, the cheque issued in favour of Karunakaran Nair in discharge of the liability towards the Society is also maintainable.
4. I have given my anxious consideration to the submissions made at the Bar. The question that arises for consideration is, whether the complaint was maintainable or not? Put it differently, whether the complainant/Society has locus standi to file the complaint under Section 138 read with Section 142 or the
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