The court upheld the conviction under Section 138 of the Negotiable Instruments Act, emphasizing the presumption of liability and the validity of the complaint filed by an authorized agent.

JUDGMENT :

(Amarjot Bhatti, J.)

Petitioners M/s Sidhi Vinayak Agencies, through its Proprietor Ajay Sharma and Ajay Sharma in his personal capacity filed present criminal revision against impugned judgment dated 02.09.2023 and quantum of sentence dated 04.09.2023 passed by learned Additional Sessions Judge, Ludhiana, whereby appeal filed by appellant M/s Sidhi Vinayak Agencies, through its Proprietor Ajay Sharma was dismissed and judgment of conviction and quantum of sentence dated 13.02.2020 passed by learned Judicial Magistrate Ist Class, Ludhiana was upheld and petitioners were sentenced to undergo rigorous imprisonment for a period of two years and to pay compensation of Rs. 60 lacs for the offence punishable under Section 138 of Negotiable Instruments Act.

2. Brief facts of the case are M/s Kalatmika Designs Private Limited was a private company and was having a business of import and export of yarn and readymade garments. Accused No. 2 Ajay Sharma had earlier represented to complainant that his firm M/s Sidhi Vinayak Agencies was a partnership concern and he and his wife Manju Sharma were its working partners and were incharge of firm and responsible for conduct and business of accused No. 1 firm. Accused firm along with accused No. 2 had been purchasing goods from complainant company and had been making part payments and so there existed current, open mutual running account between complainant and accused firm. According to statement of account of complainant company, there was outstanding amount of more than Rs. 1 crore. In order to discharge partial legal liability, accused No. 2 issued a cheque bearing No. 925347 dated 05.10.2012 for Rs. 5,29,518/-, drawn on State Bank of Bikaner and Jaipur, Branch Madhopuri Chowk, Ludhiana, in favour of complainant company. However, said cheque was dishonoured due to closure of account. Thereafter, he again issued six cheques and assurance was given to complainant that cheques bearing No. 000298, 000299 and 000300 dated 25.10.2012 for 20 lacs each would be honoured on pr ¹ esentation on 25.10.2012. The complainant presented above said three cheques with his banker, but same were dishonoured vide memo dated 26.10.2012 with remarks “Payment Stopped”. Thereafter, legal notice dated 05.11.2012 posted on 20.11.2012 was sent, calling upon accused to make payment of amount mentioned in cheques within 15 days from the date of receipt of legal notice. Despite service of said legal notice, accused did not make payment within the stipulated period. Thereafter, complaint was filed.

3. After leading preliminary evidence by complainant through its authorized agent Sh. Yogesh Malhotra, accused were ordered to be summoned to face trial for the offence punishable under Section 138 of Negotiable Instruments Act, vide order dated 21.01.2013.

4. Finding prima-facie case against accused for offence punishable under Section 138 of the Act, notice of accusation was served upon accused No. 2, to which he pleaded not guilty and claimed trial and accordingly, case was fixed for evidence of accused.

5. In order to prove its case, complainant company initially examined in chief its Authorized Agent Sh. Yogesh Malhotra as CW-1 and thereafter, examined Deepak Bhandari, authorized vide Resolution dated 05.08.2014 as CW-1 and Ranjit Singh, Clerk, Excise and Taxation Department as CW-2 and thereafter, closed the evidence.

6. Statement of accused was recorded under Section 313 Cr.P.C. to which he pleaded innocence and false implication.

7. In defence, accused examined Shyam Babu Parsad, Clerk of Vijaya Bank (now known as Bank of Baroda) as DW-1, Singhasan Rani, Clerk, Office of Registrar Companies, Punjab & Chandigarh as DW-2 and Ankit Katyal, Single Window Operator, PNB as DW-3 and closed the evidence.

8. After hearing arguments advanced by learned counsel for complainant and learned counsel for accused, learned trial Court convicted accused No. 2 Ajay Sharma and sentenced under Section 138 of Negotiable Instruments Act v