IN THE HIGH COURT OF KARNATAKA, KALABURAGI BENCH DATED THIS THE 1^ST DAY OF AUGUST, 2025 BEFORE THE HON'BLE MRS JUSTICE M G UMA CRIMINAL APPEAL NO. 200277 OF 2024 (378(Cr.PC)/419(BNSS))

BETWEEN:

SRI ALLISAB S/O NABISAB PATEL, AGED ABOUT 51 YEARS, OCC: AGRICULTURE, R/O. NANDYAL VILLAGE, TQ. BABALESHWAR, DIST. VIJAYAPUR.

…APPELLANT (BY SRI S. S. MAMADAPUR, ADVOCATE)

AND:

SRI AYUB S/O MOHOMMAD YUSUF NALABAND, AGED ABOUT 47 YEARS, OCC: BUSINESS, R/O. NALABAND GARDEN MOHASIN MANJIL, NEAR BADIKAMAN, VIJAYAPURA-586101.

…RESPONDENT (BY SRI J. AUGUSTIN, ADVOCATE)

THIS CRIMINAL APPEAL IS FILED UNDER SECTION

378 (4) OF CR.P.C (OLD), U/S. 419(4) OF BNSS PRAYING TO SET ASIDE THE JUDGMENT DATED 22.03.2024 PASSED BY THE HON’BLE IV ADDL. DISTRICT AND SESSIONS JUDGE, VIJAYPUR IN CRIMINAL APPEAL NO. 39/2023 AND RESTORE THE JUDGMENT OF CONVICTION DATED 20.03.2023 PASSED BY THE HON’BLE III ADDL. CIVIL JUDGE AND JMFC, VIJAYPUR IN CC NO. 6430/2020 AND CONSEQUENTLY CONVICT THE RESPONDENT FOR THE OFFENCE PUNISHABLE UNDER SECTION 138 OF NI ACT.

THIS APPEAL, COMING ON FOR FURTHER HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MRS JUSTICE M G UMA ORAL JUDGMENT (PER: HON'BLE MRS JUSTICE M G UMA)

The appellant being complainant in C.C.No.6430/2023 on the file of the learned III Addl. Civil Judge and JMFC-I, Vijayapura, [for short ‘the Trial Court’] is impugning the judgment dated 22.03.2024 passed in Criminal Appeal No.39/2023 on the file of the learned IV Addl. District and Sessions Judge, Vijayapur, [for short, ‘the First Appellate Court’] allowing the appeal, and setting aside the judgment of conviction and order of sentence against the respondent dated 20.03.2023 convicting him for the offence punishable under Section 138 of Negotiable Instrument Act (for short ‘N.I.Act’) sentencing him to pay fine of Rs.8,50,000/- with a default sentence.

2. Parties are referred to as per their ranking before the Trial Court for the sake of convenience.

3. The facts of the case in brief are that:

The complainant has filed the private complaint in P.C.No.506/2020 before the Trial Court against the accused under Section 200 of Cr.P.C. alleging the commission of offence punishable under Section 138 of NI Act. It is the contention of the complainant that he was having cordial relationship with accused who is a business man. Since the accused was in need of money, he requested the complainant to pay hand loan of Rs.8,00,000/-. Accordingly, the complainant lent an amount of Rs.8,00,000/-. The accused promised to repay the same within six months. The complainant demanded back the amount during September 2019 and later, the accused issued the cheque bearing No.537874 dated 21.07.2020 for Rs.8,00,000/- drawn on State Bank of India, Vijayapur Branch towards the discharge of legally enforceable debt. When the cheque was presented for encashment, the same was dishonored as there was insufficient funds in the account of the accused. A legal notice was issued by the complainant informing the accused regarding dishonor of the cheque amount and calling upon him to repay the cheque amount. The accused issued reply notice denying borrowing of the amount and contended that blank cheque was issued out of confidence in the complainant for business purpose. Since the accused had not repaid the cheque amount, the complainant has filed the private complaint against the accused requesting the Trial Court to take cognizance of the offence. The trial Court took cognizance of the offence and registered case in C.C.No.6430/2020 and summoned the accused. The accused has appeared before the Court and pleaded not guilty and claimed to be tried.

4. The complainant examined himself as PW-1 and got marked Exs.P-1 to P-7 in support of his contention. The accused denied all the incriminating materials available on record in his statement under Section 313 Cr.P.C. examined DW-1 and got marked Ex.D-1. The Trial Court, after taking into consideration all these materials on record, came to