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2023 Supreme(Mad) 3193

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
P. DHANABAL, J.
A.N. Jegadeesan - Appellant
Versus
S. Manikandan - Respondent
Crl. A. (MD)No. 177 of 2017
Decided On : 27-09-2023

Advocates appeared: For the Appellant :I. Saliyakhan, Advocate. For the Respondent:S. Prabha, D. Ramesh Kumar, Advocates.

The main legal point established in the judgment is the importance of complying with statutory requirements, including the issuance of notice within the limitation period for the first presentation of the cheque, and the legal presumption of a legally enforceable debt or liability under Section 139 of the Negotiable Instruments Act.

Headnote:

Negotiable Instruments Act - Cheque Bounce - Section 138, Section 142 - The court discussed the presentation of cheques for collection, notice issuance, and legal presumptions under Section 139 of the Negotiable Instruments Act. The judgment of acquittal was based on the failure to issue notice within the limitation period for the first presentation of the cheque and the absence of cause of action. The court emphasized the need to comply with statutory requirements and the presumption of a legally enforceable debt or liability under Section 139.

Fact of the Case:

The appellant, a cloth merchant, filed a complaint under Section 138 of the Negotiable Instruments Act against the respondent for dishonor of cheques. The trial court convicted the respondent, but the appellate court acquitted him based on the presentation of cheques for collection and notice issuance.

Finding of the Court:

The court found that the appellant failed to issue notice within the limitation period for the first presentation of the cheque, leading to the absence of cause of action. The appellate court's judgment of acquittal was upheld based on the failure to comply with statutory requirements.

Issues: The issues revolved around the presentation of cheques for collection, notice issuance, and the existence of cause of action under Section 138 of the Negotiable Instruments Act.

Ratio Decidendi: The court emphasized the need to issue notice within the limitation period for the first presentation of the cheque and highlighted the presumption of a legally enforceable debt or liability under Section 139 of the Negotiable Instruments Act.

Final Decision: The Criminal Appeal was dismissed, confirming the judgment of acquittal passed by the appellate court. The bail bond, if any, executed by the appellant was cancelled.

JUDGMENT

(Prayer: This Criminal Appeal is filed under Sections 378(2) of Cr.P.C., to call for the records pertaining to the case in C.A.No.50 of 2016 on the file of the VI Additional District & Sessions Court, Madurai by judgment dated 15.02.2017 and set aside the same.)

1. This appeal has been filed by the appellant to set aside the judgment of acquittal passed in C.A.No.50 of 2016 dated 15.02.2017, on the file of the VI Additional District and Sessions Judge, Madurai by reversing the judgment and conviction passed in S.T.C.No.648 of 2013 dated 07.06.2016 on the file of the Judicial Magistrate No.I, Fast Track Court, Madurai wherein the trial Court convicted the appellant for the offence under Section 138 r/w. 142 of Negotiable Instruments Act and sentenced him to undergo one year simple imprisonment and to pay a compensation of Rs.5,60,000/-. Aggrieved by the said judgment and conviction, the respondent herein preferred an appeal in Crl.A.No.50 of 2016 before the VI Additional District and Sessions Court, Madurai and the Additional District and Sessions Court reversed the judgment and conviction passed in S.T.C.No.648 of 2013, by allowing the appeal and acquitted the accused by a judgment dated 15.02.2017. Against which, the appellant has preferred this present Criminal Appeal.

2. The case of the appellant is that the appellant is running a readymade cloth business under the name and style of Sreekamadenu Textiles. The accused used to purchased readymade clothes from the appellant upon credit and settled the bill amount as short term installments. The accused on 10.10.2009 and on 21.09.2010 received readymade garments worth Rs.4,15,760/- from the complainant under bill no.4 and received textiles worth Rs.1,48,990/- from the complainant under bill no.22. Upon demand, the accused issued cheque for Rs.1,15,000/- on 18.08.2011 and issued second cheque for Rs.1,15,000/- on 25.08.2011 and issued third cheque for Rs. 1,15,000/- on 29.08.2011 and issued 4th cheque for Rs.2,15,000/- on 17.09.2011 drawn of ICICI Bank, Pondicherry for a total amount of above Rs.5,60,000/-. When the above cheques were presented for collection on 11.11.2011, the above said cheques were returned as 'account closed' on 24.11.2011 and the same was received from the bank on 28.11.2011. Notice was issued by the appellant on 23.11.2011 and the same was received by the accused on 26.12.2011. Thereafter, the respondent neither repaid amount nor issued reply. Thereby, the complainant filed a private complaint under Section 138 of Negotiable Instruments Act. The trial Court has taken cognizance for the offence under Sections 138 of Negotiable Instruments Act and issued summons and on summons, the respondent/accused appeared before the trial Court. The trial Court framed charges for the offences under Section 138 of Negotiable Instruments Act. After framing charges, the charges were read over and explained to the accused but the accused denied the charges.

3. The appellant had examined P.W.1 and P.W.2 and marked Exs.P.1 to P.14 and on the side of the accused, no one was examined and marked Exs.D.1 to D.5. After examination of witness, the accused was examined under Section 313(1) (b) of Cr.P.C., with regard to incriminating circumstances found in the prosecution evidences. The accused denied the evidences.

4. Upon perusing the oral and documentary evidence, the trial Court found the respondent guilty for the offence punishable under Section 138 r/w. 142 of Negotiable Instruments Act and sentenced him to undergo one year simple imprisonment and to pay a compensation of Rs.5,60,000/- by a judgment, dated 07.06.2016. Aggrieved by the said conviction and judgment, the appellant filed a criminal appeal in C.A.No.50 of 2016 before the VI Additional District and Sessions Court, Madurai. The appellate Court reversed the judgment and conviction and allowed the appeal through its judgment dated 15.02.2017.

5. Aggrieved by the said judgment, this revision case has been filed on the

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