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2022 Supreme(Telangana) 700

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
G. Radha Rani
M/s. Arihant Distributors – Petitioner
Versus
The State of Telangana - Respondent
Criminal Revision Case No.482 of 2019
Decided On : 27-12-2022

Advocates:
Advocate Appeared:
For the Petitioner: M.V.V. Baswa Raj

Headnote:

Negotiable Instruments Act - Section 79 and 138 - Cheques dishonoured - Insufficiency of funds – Appeal against Conviction – Held, documentary evidence would clearly prove that cheques were issued by accused towards discharge of legally enforceable debt and when the cheques were presented to the bank, same were returned vide cheque return memo, marked under Exs.P14 and P17 for insufficient funds and when legal notice was issued to accused, he received same vide postal acknowledgment as per Ex.P27, but failed to give any reply or failed to pay due amount to complainant - Fact that accused failed to reply to statutory notice under Section 138 of NI Act would lead to inference that there was merit in complainant's case - Apart from raising any probable defence, appellant-accused was not able to contest the existence of a legally enforceable debt or liability - Court does not find any merit in contention of the learned counsel for the revision petitioner-accused for setting aside the judgments of courts below - Criminal Revision Case is dismissed

ORDER :

This Criminal Revision Case is filed by the petitioner-accused aggrieved by the judgment dated 22.03.2019 passed in Criminal Appeal No.552 of 2017 on the file of the III Additional Metropolitan Sessions Judge, Hyderabad confirming the judgment of conviction and sentence passed by the II Special Magistrate, Hyderabad in C.C.No.56 of 2016 dated 05.05.2017 for the offence under Section 138 of the Negotiable Instruments Act (for short “NI” Act).

2. The case of the respondent No.2-complainant was that the complainant was a distributor for air coolers manufactured by Usha International Limited for the entire State of Telangana. The revision petitioner-accused placed separate orders for supply of air coolers towards his requirement and was due and payable an amount of Rs.9,95,464/- to the complainant and towards discharge of the said liability, issued two cheques bearing No.801924, dated 06.08.2016 for Rs.4,00,000/- and cheque bearing No.801925, dated 08.08.2016 for Rs.4,61,664/- drawn on Mahesh Bank, Himayathnagar, Hyderabad. When the said cheques were presented, they were returned dishonoured due to insufficiency of funds vide cheque return memos of the bank. The complainant got issued legal notice dated 22.08.2016, calling upon the accused to pay the amount of the cheques within 15 days from the date of receipt of the legal notice. The accused received the legal notice sent through Registered Post Acknowledgment Due on 27.08.2016. Inspite of receipt of the legal notice, the accused failed to pay the amount demanded in the notice nor issued any reply notice, as such the complainant filed the complaint.

3. The case was tried by the II Special Magistrate, Hyderabad. The complainant examined himself as PW.1 and Exs.P1 to P29 were marked on his behalf. The accused failed to adduce any oral or documentary evidence on his behalf.

4. The learned II Special Magistrate, on considering the oral and documentary evidence on record, found the accused guilty for the offence under Section 138 of the NI Act and sentenced him to undergo rigorous imprisonment for a period of six (06) months and to pay compensation of Rs.9,00,000/- to the complainant within three months from the date of the order on 05.05.2017.

5. Aggrieved by the said conviction and sentence recorded by the II Special Magistrate, the accused preferred an appeal. The appeal was heard by the III Additional Metropolitan Sessions Judge, Hyderabad vide Criminal Appeal No.552 of 2017 and vide judgment dated 22.03.2019, dismissed the appeal confirming the order passed by the II Special Magistrate, Hyderabad dated 05.05.2017 in C.C.No.56 of 2016.

6. Aggrieved further, the accused preferred this revision contending that the lower appellate court dismissed the appeal without considering the facts of the case. The lower appellate court failed to appreciate that the mandatory notice under Section 138(b) of the NI Act was not issued as per the procedure laid down under law. The complainant issued the notice, demanding the interest. The defence set up by the complainant was civil in nature. The complainant demanded more than the cheque amount and future interest @ 24% per annum till the date of payment, which was against the law. The complainant had not placed any records like stock registers and supply registers available in his office before the trial court to substantiate his contention of supply of air coolers to the appellant on various dates under different invoices. The lower appellate court reproduced the orders of the trial court without appreciating the law and facts and prayed to set aside the judgment dated 22.03.2019 in Criminal Appeal No.552 of 2017 on the file of the III Additional Metropolitan Sessions Judge, Hyderabad.

7. Heard the learned counsel for the revision petitioner and the learned counsel for the respondent-complainant.

8. The learned counsel for the revision petitioner contended that a single case was filed for both the cheques. The cheques issued by the revision petit

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