ORDER

OF

Digitally signed by

GURURAJ D

Location: High

Court of Karnataka

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CONVICTION DATED 19.01.2019 PASSED BY THE XV ADDITIONAL

JUDGE AND 23^RD CMM COURT OF SMALL CAUSES, MAYO HALL,

BANGALORE IN C.C.NO.50688/2017 BY ALLOWING THIS REVISION

PETITION.

THIS PETITION, COMING ON FOR HEARING, THIS DAY, THE

COURT MADE THE FOLLOWING:

ORDER

The petitioner - accused in CC.No.50688 of 2017 on the

file of the learned XV Additional Judge and 23^rd CMM, Court of

Small Causes, Mayo Hall Unit, Bengaluru (hereinafter referred

to as 'the Trial Court' for brevity), is impugning the judgment of

conviction and order of sentence dated 19.01.2019 convicting

him for the offence punishable under Section 138 of Negotiable

Instruments Act (for short 'NI Act') and sentencing to undergo

simple imprisonment for a period of six months and to pay fine

of Rs.10,000/- in default, to undergo simple imprisonment for a

period of 30 days and also to pay compensation of

Rs.51,00,000/- within two months from the date of the order,

failing which, the complainant is at liberty to recover the said

amount as per Section 421 of Cr.P.C., which was confirmed

vide judgment dated 19.01.2021 passed in Criminal Appeal

No.25043 of 2019 on the file of the learned LVII Additional City

Civil and Sessions Judge, Mayo Hall Unit, Bengaluru (CCH-58)

(hereinafter referred to as 'the First Appellate Court' for

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brevity) by dismissing the appeal. The Criminal Appeal

No.25095 of 2019 preferred by the complainant was allowed in

part enhancing the compensation amount by Rs.50,000/- and

directing the accused to pay compensation of Rs.51,50,000/-,

within two months.

2.

Brief facts of the case are that, the complainant

filed a complaint against the accused alleging commission of

offence punishable under Section 138 of NI Act. It is

contended that the complainant is a registered Company

carrying on wholesale business in textiles. The accused has

been buying goods from the complainant on credit basis in the

regular course of business. The accused was due a sum of

Rs.1,50,00,000/- towards the value of goods supplied by the

complainant to him. It is contended that the accused has issued

8 cheques drawn on State Bank of India, towards repayment of

the said amount. The bank account was already closed,

therefore the cheques which was presented for encashment

were dishonored. The complainant issued the legal notice

calling upon the accused to repay the cheque amounts. Inspite

of service of notice, the accused has neither repaid the said

amount nor replied to the legal notice. Thereby, he has

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committed the offence punishable under Section 138 of NI Act.

Accordingly, the complainant prayed the Trial Court to take

cognizance of the offence and to take legal action against the

accused.

3.

The Trial Court took cognizance of the offence and

registered CC.No.50688 of 2017 and summoned the accused to

appear before the Court. The accused appeared before the Trial

Court in response to the summons and pleaded not guilty for

the accusations made against him. The complainant examined

PW1 and got marked Exs.P1 to 40 in support of his contention.

The accused has denied all the incriminating materials available

on record in his statement recorded under Section 313 of

Cr.P.C. He also examined DW1 and DW2 and got marked

Exhibits D1 to D18 in support of his defence. The Trial Court

after taking into consideration all these materials on record,

came to the conclusion that the complainant has proved the

guilt of the accused and accordingly, passed the impugned

judgment of conviction and order of sentence convicting and

sentencing him as stated above.

4.

Being aggrieved by the same, the accused has

preferred Criminal Appeal No.25043 of 2019, while the

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complainant has preferred Criminal Appeal No.25095 of 2019

seeking enhancement of compensation. The First Appellate

Court on re-appreciation of the materials on record, dismissed

Criminal Appeal No.25043 of 2019 preferred by the accus