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2015 Supreme(P&H) 236

IN THE HIGH COURT OF PUNJAB AND HARYANA
Before
The Hon’ble Mr. Justice Paramjeet Singh
CRR-2594 of 2014 (O & M)
Balbir Singh
v.
Raj Krishan
{Decided on 03/03/2015}

Advocates:
For the Petitioner:Mr. Neeraj Madaan, Advocate.
For the Respondent:Mr. Peeush Gagneja, Advocate.

Headnote:Dishonour of Cheque--Loan entry in Account books—Account books/bahi entries are not the instruments of advancement of loan which can legally be enforced, as recognised in the N.I. Act.

       Dishonour of Cheque--Acquittal--Security Cheque--Complainant advanced loan to a farmer with promise to sell his produce to him and got signatures on blank papers/cheque--Accused acquitted.

       (A) Negotiable Instruments Act, 1881, S.138--Loan entry in Account books--Dishonour of Cheque--Held; that account books/bahi entries are not the instruments of advancement of loan like pronote, bonds, or Bill of exchange etc. which can legally be enforced, as recognised in the N.I. Act--The entries in account books are only relevant under Section 34 of the Indian Evidence Act, but such statements shall not alone be sufficient evidence to charge any person with liability--Evidence Act, 1872, S.34. (Para 20)

       (B) Negotiable Instruments Act, 1881, S.138--Dishonour of Cheque--Acquittal--Security Cheque--Dispute between complainant, a agricultural produce trader and accused, a farmer--Complainant contended that he used to advance loans to farmers and charge interest who sell or promise to sell their produce accused acquitted on following grounds:-

       (i) As per complainant he was dealing in money lending business to the public at large, however, is not having money lender’s licence therefore such advancement of loan is illegal;

       (ii) There is no disclosure about the date of demand of loan and giving of loan in complaint itself--Where as accused as taken defence that cheque was given as security;

       (iii) Once the dispute arose that entries are forged and fabricated, the trial Court yet decided the case in a summary trial and no proper opportunity to the petitioner was afforded to defend his case which has prejudiced his right;

       (iv) Defence led by the petitioner clearly indicates that the complainant was in a dominating position and has been advancing loans after getting their signatures on blank papers/cheques;

       (v) Evidence on record clearly indicates that post dated cheque was in fact to ensure that the petitioner would sell his next crop to the complainant and as such it was given as a security--In fact, this is the mode adopted by the commission agents to always keep farmers in their cluthes. (Paras 20 to 24)

       (C) Negotiable Instruments Act, 1881, S.138--Dishonour of Cheque--Advancement of Loan--Plea that complainant was doing business of money lending without licence--Plea raised for first time in High Court--Held; this is a legal issue and can be raised at any stage--Punjab Registration of Money-Lender Act, 1938. (Para 23)

       

JUDGMENT

Mr. Paramjeet Singh, J.:- The genesis of factual matrix lies over a dispute between a commission agent (respondent-complainant) and a farmer (petitioner-accused) which ended up in filing of a complaint under Section 138 of the Negotiable Instruments Act, 1881 (in short, ‘N.I.Act). Now-a-days, the people prefer to carry and execute a small piece of paper called cheque than the currency worth of cheque. The N.I.Act is a promptitude remedy to keep a close watch on the economic offence of cheating a person to whom a cheque is issued towards discharge of a debt.

2. Present criminal revision has been preferred by the petitioner against judgment dated 19.05.2014 passed by the Additional Sessions Judge, Fazilka, thereby dismissing the appeal filed by the petitioner against the judgment of conviction and order of sentence dated 20.03.2012 passed by the Judicial Magistrate Ist Class, Abohar, vide which the petitioner has been convicted for an offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (in short, ‘N.I.Act’) and sentenced to undergo rigorous imprisonment for a period of two years and to pay a fine of Rs.2,500/-, in default to undergo simple imprisonment for one month.

3. In nutshell, the case set up by the complainant as emanating from the record is to the effect that he was doing the business of commission agent at Abohar under the name and style of M/s Sidana Traders and he is the sole proprietor of his business. The complainant maintains true, proper and regular account books in the ordinary course of his business and strikes balance daily. The complainant advances loan to such agriculturalists, who sell or promise to sell their agricultural produce through him and interest is charged as per prevalent rate in the area of Mandi Abohar. The petitioner-accused used to sell the crop through the complainant and he has created a separate account in his name in the account books of complainant showing debit/credit entries as per dealings with the parties. Allegedly, on 26.05.2004, the petitioner visited the shop of complainant and after going through his account and understanding the entries and outstanding balance towards him, gave post dated cheque bearing No.220614 dated 30.11.2004 for Rs.9,45,000/- in discharge of recoverable debt out of his account No.4483 with Punjab National Bank in favour of the complainant and assured that the cheque amount will be paid by the bank on presentation of the same by the complainant. On 30.11.2004, when the complainant presented the said cheque, it was returned back by the petitioner’s banker on the ground of “Insufficiency of Funds” in the account of petitioner vide cheque return memo dated 03.12.2004, which was intimated to the complainant on 08.12.2004. The complainant approached the petitioner on 08.12.2004 and requested him to pay the cheque amount. The petitioner-accused was also served with legal notice dated 15.12.2004 vide which specific demand of Rs.9,45,000/- was made. The accused received the legal notice but paid nothing to the complainant. Therefore, the complaint was filed.

4. On the basis of preliminary evidence, notice of accusation for commission of an offence punishable under Section 138 of the NI.Act was served upon the petitioner-accused to which he pleaded “not guilty” and claimed trial.

5. To prove his case, the complainant himself stepped into the witness-box as PW 3 besides examining Ved Parkash, Clerk, Punjab National Bank as PW 1, Ashok Kumar, Clerk, Canara Bank as PW 2.

6. Statement of the accused was recorded under Section 313 Cr.P.C. The accused denied all the incriminating circumstances appearing against him in the complainant’s evidence and claimed to be innocent. In his defence, the accused examined Naveen Kumar, Clerk, Market Committee as DW 1 and Nachattar Singh as DW 2 and thereafter closed his defence evidence.

7. Vide impugned judgment of conviction and order of sentence dated 20.03.2012, the trial Court convicted and sentence



























































































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