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2017 Supreme(Mad) 4132

IN THE HIGH COURT OF JUDICATURE AT MADRAS
P.KALAIYARASAN, J.
M/s. Anchor Marine Service (Leather Division) A Partnership firm, Rep. by its Partner,
Mrs.Omana Manavalan by her Power Agent Mr.T.N.Srinivasan - Appellant
Vs.
Mr. Prakash H.Mehtani Managing Director M/s. Tejoomals Industries Ltd. - Respondent
Crl.A.No.306 of 1997 and Crl.R.C.No.147 of 1997
Decided On : 03-11-2017

Advocates Appeared:
For the Appellant : Mr. Bijesh Thomas for Mr. K.F.Manavalan
For the Respondent: Mr. C.D.Johnson, Legal Aid counsel

Headnote:

Criminal Procedure Code,1973 - Section 313 (1) (b) - Negotiable Instruments Act - Section 138 – Cheque dishonoured – Evidence - Acquittal of the second accused – Challenged - In cheque bounce case filed against company, Director and Regional Manager, trial Court convicted company and Regional Manager, namely A1 and A3 and sentenced the first accused company to pay a fine and in default directed A3 to undergo 3 months SI - For third accused, awarded imprisonment of RI for 3 months and to pay a fine in default to undergo one month S.I - Trial Court acquitted the second accused, Director of Company - Case of the prosecution is that on behalf of first accused company, cheques dated were issued to complainant - Cheques were presented before Bank and same were returned as there was no sufficient fund in account of first accused - On same date, notice was issued - Then within prescribed period complaint was also lodged before trial Court – Criminal revision as well as in criminal appeal is whether filing of case on successive cause of action is permissible - Complainant having filed a complaint and after quashing of same by this Court, he re-presented same cheque and created fresh cause of action and on that cause of action present case has been filed - Held, In this case on hand, previous complaint filed by complainant for dishonour of cheque without adding company as a party was quashed by this Court - After quashing of that complaint, complainant re-presented cheque again second time to Bank and same was also dishonoured - On such dishonour, complainant issued notice and preferred present complaint - Contention of learned counsel appearing for petitioner in the criminal revision is that second cause of action for dishonour of same cheque is not maintainable - Earlier complaint was quashed on technical ground that company was not added as a party - Trial Court has rightly acquitted A2 on the ground that he is impleaded only because he is the Director of the company - There is no evidence that he was incharge of and was responsible to company for conduct of business at the time of committing offence - Hence, no interference is required in criminal appeal - Criminal Revision Petition is partly allowed

JUDGMENT :

This Criminal Revision has been filed by the third accused as revision petitioner challenging the conviction and sentence passed against him in Crl.A.No.62 of 1996 on the file of the IV Additional Sessions Judge, Chennai, dated 10.03.1997.

2. Criminal Appeal in Crl.A.No.306 of 1997 has been filed by the complainant as appellant challenging the acquittal of the second accused Prakash H.Mehtani in the Judgment passed by the learned VII Metropolitan Magistrate in C.C.No.5585 of 1994, dated 30.04.1996.

3. In the cheque bounce case filed against the company, Director and the Regional Manager, the trial Court convicted the company and the Regional Manager, namely A1 and A3 and sentenced the first accused company to pay a fine of Rs.25,000/- and in default directed A3 to undergo 3 months SI. For third accused, awarded imprisonment of RI for 3 months and to pay a fine of Rs.15,000/-, in default to undergo one month S.I. The trial Court acquitted the second accused, the Director of the Company.

4. Against the acquittal of the second accused, Criminal Appeal has been filed before this Court. Against the conviction and sentence passed against A1 and A3 by the trial Court, appeal in C.A.No.62 of 1996 has been preferred before the IV Additional Sessions Judge, Chennai and the first appellate Court also confirmed the conviction and sentence of A1 and A3. Hence, A3 has preferred Criminal Revision before this Court against his conviction and sentence.

5. The case of the prosecution is that on behalf of the first accused company, cheques for Rs.5,00,000/- and Rs.4,92,393/-, dated 05.06.1994 were issued to the complainant. The cheques were presented on 15.11.1994 before the Bank and the same were returned on 17.11.1994 as there was no sufficient fund in the account of the first accused. On the same date, notice was issued. Then within the prescribed period complaint was also lodged before the trial Court.

6. After questioning the accused, three witnesses were examined and 26 Exhibits marked on the side of the complainant. With respect to incriminating evidence, accused were questioned under Section 313 (1) (b) of Cr.P.C and they denied their complicity with the offence. The trial Court after analysing the evidence convicted A1 and A3 and acquitted A2 as aforesaid.

7. The only point that arises in this criminal revision as well as in criminal appeal is whether filing of the case on successive cause of action is permissible. The complainant having filed a complaint and after quashing of the same by this Court, he re-presented the same cheque and created fresh cause of action and on that cause of action the present case has been filed.

8. The learned counsel appearing for the revision petitioner brought to the notice of this Court, the Judgment of the Hon'ble Supreme Court in Uniplas India Ltd., v. State (Govt. of NCT of Delhi), reported in 2001 (3) CTC 309, wherein it has been held that if dishonour of cheque has once snowballed into a cause of action it is not permissible for a payee to create another cause of action with the same cheque.

9. The learned counsel appearing for the first respondent in Criminal Revision argued that so long as cheque is valid and so long as it is dishonoured upon presentation to bank, holders right to prosecute drawer for default committed by drawer remains valid and exercisable by relying the Judgment of the Hon'ble Supreme Court in MSR Leathers v. S.Palaniappan, reported in (2013) 1 SCC 177. The Three Judges Bench of the Hon'ble Supreme Court overruling the decision in Sadanandan Bhadran's case [(1998) 6 SCC 514] has held as follows :

"33. Applying the above rule of interpretation and the provisions of Section 138, we have no hesitation in holding that a prosecution based on a second or successive default in payment of the cheque amount should not be impermissible simply because no prosecution based on the first default which was followed by a statutory notice and a failure to pay had not been launched. If the ent








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