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2025 Supreme(Mad) 5524

IN THE HIGH COURT OF JUDICATURE AT MADRAS
D.BHARATHA CHAKRAVARTHY, J.
Chandrasekar – Appellant 
versus
M/s. Blue Star Creators, Rep. by its Proprietor K.Varadharajan – Respondent
Crl.R.C.No.319 of 2021
Decided on : 07-07-2025

Advocates Appeared:
For the Appellant : Mr.C.S.Saravanan
For the Respondent: Mr.Ma.Pa.Thangavel

A conviction under Section 138 of the Negotiable Instruments Act can be upheld when liability beyond reasonable doubt is proven despite defenses of coercion or payment issues.

Headnote:(A) Criminal Procedure Code - Section 397, 401 - Negotiable Instruments Act - Section 138 - Accused convicted for issuing dishonoured cheques - The accused issued a cheque for Rs.2,20,924/- and another for Rs.3,00,000/- which bounced due to 'account blocked' - The trial Court conviction was upheld, with the sentence modified from six months to three months - The court found the complainant proved their case beyond reasonable doubt and the defense of coercion was rejected. (Paras 1-8)

(B) Liability of Cheques - The significant issue was whether the cheques were issued willingly, given that the account was blocked. The court emphasized that the evidence presented sufficiently established liability, countering the defense's claims. (Paras 4-7)

(C) Modification of Sentence - The petitioner is directed to pay the cheque amount with interest within 60 days, failing which he will serve imprisonment - The court identified an oversight in the trial Court regarding payment of the second cheque. (Paras 8)

Table of Content
1. the legal framework surrounding cheque dishonour and liability. (Para 1)
2. dishonoured cheques issued against liability established. (Para 2 , 3)
3. arguments related to coercion in cheque issuance. (Para 4 , 5)
4. court evaluates evidence credibility. (Para 6)
5. established banking proofs substantiate liability. (Para 7)
6. final decision ensues from revisional findings. (Para 8)

ORDER :

D.BHARATHA CHAKRAVARTHY, J.

1. This criminal revision is filed by the petitioner/accused to set aside the judgment dated 08.12.2020 made in C.A.No.371 of 2019 on the file of I Additional District and Sessions Judge, Coimbatore, confirming the judgment of conviction for the offence under Section 138 of the Negotiable Instruments Act , made in C.C.No.284 of 2017 on the file of Judicial Magistrate, Fast Track Court No.2, Coimbatore. As a matter of fact, while confirming the judgment of the trial Court, the sentence of imprisonment has been partly modified by reducing the same from six months to three months.

2. The case of the respondent/complainant is that the complainant had paid through banking channels to the account of the accused a total sum of Rs.14,50,000/- towards supply of iron rods. After receiving the said amount, goods for a sum of Rs.9,29,075/- alone were supplied. The accused, towards the liability to repay the balance amount of Rs.5,20,924, issued a cheque dated 15.07.2016 for Rs.2,20,924/- and another cheque dated 05.08.2016 for a sum of Rs.3,00,000/-. Upon presenting the said cheques for collection, the same returned dishonoured with the endorsement "account blocked". Thereafter, the complainant issued a demand notice. Since there was neither any reply nor payment, the complaint was filed. Upon the complaint being taken on file, summons was issued and the accused appeared and denied the charges and stood trial.

3. In order to prove the allegations, the complainant examined himself as P.W.1 and marked Exs.P.1 to P.8. Upon being questioned under Section 313 of the Code of Criminal Procedure, the accused denied the evidence as false. No evidence was let in on the side of the defence. The trial Court proceeded to hear the learned counsel on both sides and found that the complainant has proved the case beyond reasonable doubt that the cheques were issued in discharge of liability and rejected the case of the defence that the cheques were obtained by force at the police station and accordingly, convicted the accused and directed the payment of a sum due under the first cheque, that is, Rs.2,20,924/- with 6% further interest to be deposited as compensation and also imposed a sentence of simple imprisonment for a period of six months. Aggrieved thereby, the petitioner/accused filed C.A.No.371 of 2019. The learned I Additional District Judge, Coimbatore, after re-appraising the evidence and considering the case of the parties, confirmed the conviction, however, reduced the sentence of simple imprisonment from six months to three months.

4. Heard Mr.C.S.Saravanan, learned counsel for the petitioner/accused. The learned counsel would submit that when the accused has proved to the level of pre-ponderence of probability through the cross-examination of the complainant that the cheques were obtained at the police station, the trial Court ought to have seen that there is not any voluntary action of issuing the cheques, especially when the account itself was blocked and therefore, ought not to have convicted the accused for the offences.

5. Per contra, Mr.Ma.Pa.Thangavel, learned counsel appearing for the respondent/complainant, would submit that the Courts below have rightly convicted the accused upon due appreciation of evidence and there is nothing for this Court to interfere in exercise of revisional jurisdiction.

6. I have considered the rival submissions made on either side and perused the material records of this case.

7. It can be seen that the invoices pursuant to which the complainant is said to have paid the amount, were mark

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