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2014 Supreme(Mad) 2519

High Court of Judicature at Madras
M. VENUGOPAL, J.
C. Ponnusamy
Versus
Chinnamman Constructions Rep. by its Partner S.D. Ramasamy & Others
Crl. A. No. 679 of 2009
Decided On : 14-08-2014

Advocates Appeared:
For the Appellant:T. Gowthaman, Advocate.
For the Respondents:N. Manokaran, Advocate.

Headnote:

Negotiable Instrument Act - Section 138 (4) r/w 142 - Companies Act, 1956 - Sections 159, 163 and 610(3) - Evidence Act, 1872 - sub-section (2) of Section 74 - Indian Partnership Act, 1932 - Section 72 - Criminal Procedure Code - Section 255(1) – Acquittal of order – Dishonor of cheque - Case of Appellant Complainant is that 1st RespondentA1 is a Partnership firm doing civil contract works - Accused are its partners and responsible for day to day affairs of 1st RespondentA1 firm - 2nd Respondent A2 and partners and authorised signatories of 1st RespondentA1 firm - Said on behalf of 1st RespondentA1 with knowledge borrowed a sum from Complainant for their urgent business needs and in order to discharge 1st RespondentA1 firms liabilities said on behalf of 1st RespondentA1 firm with knowledge to A4 issued a post dated cheque bearing drawn on State Bank of India Commercial Branch Erode to Complainant - Said died and after his death 2nd RespondentA2 look after day to day affairs of 1st RespondentA1 firm with knowledge of 3rd Accused and 3rd RespondentA4 – Now Accused 2 to 4 are looking after day to day affairs of 1st RespondentA1 firm - Appellant/Complainant presented cheque for encashment through State Bank of India branch - To shock and surprise said cheque was returned as dishonoured for reason of Funds Insufficient in 1st Respondent/A1s Firm Bank Account - Appellant/Complainants bank returned cheque through registered post and same was received together with return memo to him – Held, In short this Court is of considered view that Appellant/Complainant had not proved to subjective satisfaction of this Court that loan was obtained for purpose of 1st RespondentA1 firm with knowledge of A2 to A4 and later issued post dated cheque in issue - Legal notice issued on behalf of Appellant/Complainant was received by 2nd RespondentA2 for himself and for on behalf of 1st RespondentA1 as seen from Ex.P5 and P6 acknowledgment cards - In terms of Section 138 of Negotiable Instruments Act, 1881 accrual of cause of action for filing of complaint arises from date of service of notice on accused - In terms of Section 142 of Negotiable Instruments Act, from date of accrual of cause of action within days Appellant/Complainant had to prefer complaint - In present case cause of action had arisen - Before Appellant/Complainant ought to have filed complaint before trial Court – Unfortunately he had filed complaint in file of trial Court - In effect there was a delay of days in preferring complaint - Only when main case arguments were heard and when it was posted for judgment at that time only criminal was filed on behalf of Appellant/Complainant before trial Court praying for permission to that Court to condone delay of days in question - Very rightly trial Court had dismissed Miscellaneous Petition as a belated one - To put it succinctly complaint filed by AppellantComplainant on file of trial Court under Section 138 & 142 of Negotiable Instruments Act, 1881 was barred by limitation – Consequently Criminal Appeal fails - Criminal Appeal is dismissed

Judgment :

1. The Appellant/Complainant has focused the present Criminal Appeal as against the judgment of acquittal in C.C.No.182 of 2006 dated 02.07.2009 passed by the Learned District Munsif-cum-Judicial Magistrate, Kodumudi.

2. The trial Court while passing the impugned judgment in C.C.No.182 of 2006 on 02.07.2009 had inter alia observed that '. . . the Appellant/Complainant's complaint was barred by limitation, the complaint was not filled fulfilling the requirements of Section 141, the charge in respect of R1/A1, R2/A2 and R3/A4, on the basis of Appellant/Complainant's witnesses and documents were not proved beyond reasonable doubt and found the accused not guilty under Section 138 (4) r/w 142 of the Negotiable Instrument Act and acquitted them under Section 255(1) of the Criminal Procedure Code. Since the 3rd Accused had expired, the trial Court held that the charge against him stood abated.'

3. The summary of complaint filed by the Appellant/Complainant:

The case of the Appellant/Complainant is that the 1st Respondent/A1 is a Partnership firm doing civil contract works. The Accused 2 to 4 are its partners and responsible for the day to day affairs of the 1st Respondent/A1 firm. The 2nd Respondent /A2 and one S.C.Palanisamy are the partners and authorised signatories of 1st Respondent/A1 firm. On 22.09.2005, the said S.C.Palanisamy on behalf of 1st Respondent/A1 with the knowledge of A2 to A4 borrowed a sum of Rs.3,50,000/- (Rupees Three Lakhs & Fifty Thousand only) from the Complainant for their urgent business needs and in order to discharge the 1st Respondent/A1 firm's liabilities, the said S.C.Planisamy on behalf of the 1st Respondent/A1 firm with the knowledge of A2 to A4 issued a post dated cheque on 20.03.2006 bearing No.655844 for Rs.3,50,000/-drawn on State Bank of India, Commercial Branch, Erode to the Complainant. The said S.C.Palanisamy died on 22.10.2005 and after his death, the 2nd Respondent/A2 look after the day to day affairs of 1st Respondent/A1 firm with the knowledge of the 3rd Accused (C.Deivasigamani) and the 3rd Respondent/A4. Now, the Accused 2 to 4 are looking after the day to day affairs of the 1st Respondent /A1 firm.

4. The Appellant/Complainant, on 09.09.2006, presented the cheque for encashment through State Bank of India, Kodumudi branch. To the shock and surprise, the said cheque was returned as dishonoured for the reason of 'Funds Insufficient' in the 1st Respondent/A1's Firm Bank Account. The Appellant/Complainant's bank returned the cheque through registered post and the same was received on 19.09.2006 together with return memo dated 11.09.2006 to him.

5. Thereafter, the Appellant/Complainant caused a legal notice dated 28.09.2006 to A1 to A4 calling upon them to repay the said cheque amount of Rs.3,50,000/-within 15 days from the date of receipt of notice. The 1st Respondent/A1's Firm and the 2nd Respondent/A2 acknowledged the said notice on 30.09.2006 and 3rd Respondent/A4 acknowledged the said notice on 03.10.2006 and the acknowledgment cards were received by the Appellant/Complainant's counsel on 04.10.2006. The 3rd Accused evaded the notice and the notice got returned on 10.10.2006 with an endorsement 'intimated and not claimed'. The 1st Respondent/A1, the 2nd Respondent/A2 and the 3rd Respondent/A4 sent a reply to the Appellant/Complainant's counsel with false allegations. The Accused No. 1 to 4 failed to repay the said cheque amount to the Appellant/Complainant.

6. The 1st Respondent/A1 firm without having sufficient funds in its account, S.C.Palanisamy on behalf of the 1st Respondent/A1 firm with the knowledge of A2 to A4 issued the cheque in question with dishonest intention knowing fully well that it would not be honoured on the date of its presentation and thereby cheated the Appellant/Complainant. As such, A1 to A4 deemed to have committed the offence under Sections 138, 141 and 142 of the Negotiable Instruments Act, 1881 and also, under Section 420 of the Indian Penal C



















































































































































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