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2023 Supreme(Online)(KER) 28519

HIGH COURT OF KERALA
V. G. Arun, J
V. MOHANAN – Appellant
Versus
SYAMALA – Respondent
Crl.Rev.Pet 485 2023



Advocates:
RAJESH SIVARAMANKUTTY, ARUL MURALIDHARAN, M.C. ASHI, PUBLIC PROSECUTOR

The dishonor of a cheque due to insufficient funds satisfies the conditions outlined in Section 138, holding the issuer liable for the offense upon failure to pay after a demand notice.

Headnote:

Instruments - Negotiable Instruments Act - Section 138 - The court upheld the trial court's conviction of the petitioner for dishonoring a cheque, confirming the legal interpretations of Section 138 regarding insufficient funds and the consequences of non-payment after a demand notice.

Fact of the Case:

The revision petitioner was accused of issuing a cheque for Rs.4,50,000/- that was dishonored due to insufficient funds. Following demand notice and failure to pay, a complaint was filed under Section 138 of the Negotiable Instruments Act.

Issues: Whether the trial and appellate courts correctly applied the legal principles concerning the dishonor of the cheque and the issuance of a demand notice under Section 138.

Ratio Decidendi: The courts correctly assessed the evidence, confirming that the dishonor of the cheque constituted a breach under Section 138 and maintained the conviction despite the revision petition.

Final Decision: The revision petition is dismissed; time for compensation payment is extended to eight months.

ORDER

Dated this the 13th day of April, 2023 The revision petitioner is the accused in S.T. No.531 of 2015 of the Chief Judicial Magistrate’s Court, Palakkad. The case originated from a complaint filed by the 1st respondent alleging commission of the offence under Section 138 of the Negotiable Instruments Act . The allegation was that, in full and final settlement of the debt due to the complainant, the revision petitioner issued cheque for Rs.4,50,000/- which, on presentation, was dishonoured with the endorsement 'insufÏcient funds’. Despite issuance of demand notice, the revision petitioner failed to pay the cheque amount. Hence, the complaint.

2. The trial court, on evaluation of evidence and consideration of the legal contentions, found the revision petitioner guilty and thereupon, convicted and sentenced him to undergo simple imprisonment for seven months and to pay compensation of Rs.7,03,000/-, with default sentence of simple imprisonment for three months. The appellate court, after detailed consideration of the legal and factual contentions, allowed the appeal in part, afÏrming the conviction and modifying the substantive sentence to imprisonment till rising of the court and also reducing the compensation amount to Rs.4,60,000/-. Hence, this revision petition.

3. Heard, learned Counsel for the petitioner and the 1st respondent/complainant.

4. Although detailed arguments were advanced by the learned Counsel for the petitioner, assailing the trial and appellate court judgments, a careful scrutiny of those judgments reveals that the trial court had properly appreciated the evidence and correctly applied the legal principles. That judgment having been modified in appeal, after re-appreciation of evidence and re-consideration of the legal contentions, I find no reason to interfere with the concurrent findings by invoking the revisional jurisdiction.

5. Learned Counsel for the petitioner raised an alternative plea to enhance the time for paying the compensation.

6. I find the request to be reasonable.

The Criminal Revision petition is accordingly dismissed and the revision petitioner is granted eight months time for paying the compensation amount. If the compensation is not paid within the extended time, the revision petitioner shall undergo simple imprisonment for six months. The non-bailable warrant, if any pending against the revision petitioner shall be kept in abeyance for eight months.

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