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1998 Supreme(Mad) 1306

High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE M. KARPAGAVINAYAGAM
J.S. AGENCIES
Versus
NAMAKKAL SOUTH INDIA TRANSPORTS
Criminal Revision Case 627 and 625 Of 1997
Decided On : 25-09-1998

For the Appearing Parties:P. Govindarajan, T.Munirathnam Naidu, Advocates.

The court clarified that the power to enhance the sentence in revision is not affected by the fact that the revision petition was filed by a private person and not by the Government.

Headnote:

NEGOTIABLE INSTRUMENTS ACT - SECTION 138 - REVISION - ENHANCEMENT OF SENTENCE - COURT'S POWER - INTERPRETATION - LEGALITY OF SENTENCE - BALANCE AMOUNT OF CHEQUE - COMPENSATION.

Fact of the Case:

The petitioners issued a cheque for Rs. 2,12,000/- towards the discharge of arrears of hire charges. The cheque was returned due to insufficient funds. The complainant sent a statutory notice, and the petitioners replied stating they were not liable to pay. The complainant filed a complaint under Sections 138 and 141 of the Negotiable Instruments Act.

Finding of the Court:

The trial court convicted the petitioners under Section 138 of the Act and sentenced them to imprisonment till the rising of the court and a fine of Rs. 30,000/-. The appellate court confirmed the conviction but found that out of the cheque amount, Rs. 1,40,000/- was already paid, and the petitioners were liable to pay only the balance amount of Rs. 72,000/-. The appellate court enhanced the fine to Rs. 1,44,000/-.

Issues: 1. Whether the petitioners had paid the entire cheque amount before its presentation in the bank. 2. Whether the appellate court had the power to enhance the sentence in revision. 3. Whether the appellate court's order directing the petitioners to pay twice the amount of the alleged balance of the cheque amount was correct.

Ratio Decidendi: 1. The court held that the petitioners failed to prove that they had paid the entire cheque amount before its presentation in the bank. The receipts issued by the complainant were not towards the cheque amount but for other transactions. 2. The court held that the appellate court had the power to enhance the sentence in revision, as held by the Apex Court in Pratap v. State of U. P., Eknath v. State of Maharashtra, and Nadir Khan v. State. 3. The court held that the appellate court's order directing the petitioners to pay twice the amount of the alleged balance of the cheque amount was not correct, as Section 138 of the Act provides for a fine of up to twice the amount of the cheque, not the balance amount.

Final Decision: The court dismissed the revisions and set aside the appellate court's order regarding the sentence. The court enhanced the sentence of fine from Rs. 30,000/- to Rs. 75,000/-, out of which Rs. 72,000/- was directed to be paid to the complainant as compensation.

Judgment :

M. KARPAGAVINAYAGAM. J.

( 1 ) - Both the Revisions and Criminal Original Petition are being disposed of by this

common order as the parties are the same and these arise out of a single trial.

( 2 ) THE petitioners in Cr1. RC. No. 627 of 1997 were convicted for the offence under Section 138 of the Negotiable Instruments Act, hereinafter referred to as the Act, in E. C. No. 6560 of 1995 on the file of VIII Metropolitan Magistrate, George Town, Chennai. As against the said conviction, the petitioners filed an appeal in C. A. No. 83 of 1997 on the file of VII Additional Sessions Judge at Chennai. The said conviction was confirmed and the appeal was dismissed. Hence, this Revision.

( 3 ) THE petitioners in Cr1. RC. No. 625 of 1997 were convicted under Section 138 of the Act in C. C. No. 6560 of 1997 on the file of VIII Metropolitan Magistrate. George Town. Chennai and sentenced to undergo imprisonment till the rising of the court and to pay a fine of Rs. 30,000/- Having aggrieved over, the inadequacy of sentence, the complainant, the respondent herein filed a revision in Cr1. RC. No. 19 of 1997 on the file of VII Additional Sessions Judge at Chennai. The learned Sessions Judge, after hearing the parties, enhanced the sentence of fine from Rs. 30,000/- to Rs. 1,44,000/ -. As against the order of enhancement, the petitioners have filed this revision.

( 4 ) THE complainant filed a petition in Cr1. O. P. No. 17795 of 1997 under Section 482 Cr. P. C. before this court praying to set aside the findings rendered in C. A. No. 83 of 1997 and Cr1. RC. No. 19 of 1997 on the file of VII Additional Sessions Judge, to the effect that out of the cheque amount of Rs. 2,12,000/ - Rs. 1,40,000/- was already paid and that there is only a balance of Rs. 72,000/ -.

( 5 ) THE facts are these:- The petitioners, on 30-5-1995 issued a cheque, for Rs. 2,12,000/- in favour of the respondent towards the discharge of arrears of hire charges. The said cheque presented on 26-8-1995 was returned on 28-8-1995 as there was no sufficient funds in the account of the petitioners in the Bank. On 1-9-1995, the respondent sent a statutory notice to the petitioners. In reply to the demand notice on 13-9-1995 the petitioners sent a notice stating that the petitioners were not liable to pay the cheque amount. In order to refute the contents of the reply notice dated 13-9-1995, the respondent again sent another notice on 30-9-1995 giving the details about the liability to be discharged by the petitioners. This was received by the petitioners. Thereupon again the petitioners sent a reply. Since the cheque amount was not paid by the petitioners despite demand within the statutory period, the respondent filed a complaint against the petitioners for the offence under Sections 138 and 141 of the Act.

( 6 ) TO prove the case of prosecution on the side of the respondent, P. Ws. 1 to 3 were examined and Exs. P1 to 13 were filed.

( 7 ) THE plea of the defence is that already entire cheque amount was paid by the petitioners to the complainant even before the presentation of the said cheque in the Bank. In order to establish this factor Exs. D 1 and D2 were marked.

( 8 ) ON conclusion of trial, the petitioners were found guilty for the offence under Section 138 of the Act and they were sentenced to undergo imprisonment till the rising of the court and to pay a fine of Rs. 30,000/ -. It was further directed that out of the said sum of Rs. 30,000/-, Rs. 28,000/-is to be paid to the complainant, the respondent herein as compensation.

( 9 ) THE lower appellate court though found the petitioners guilty, concluded on the strength of Exs. Dl and D2 that out of the cheque amount of Rs. 2,12. 000/ -. Rs: 1,40,000/- was already paid and that therefore the petitioners are liable to pay only the balance amount of Rs. 72,000/ -On the basis of this conclusion the lower appellate Court allowed the revision for enhancement of sentence filed by the complainant, by enhancing the fine from
























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