HIGH COURT OF KERALA
V.K.MOHANAN, J
AMBIKA – Appellant
Versus
MOHANANA AND ANOTHER – Respondent
CRIMINAL REVISION PETITION 2111/2010
Negotiable Instruments - Conviction - Act Section List - Section 138, Section 357(1) of Cr.P.C - The court confirmed the conviction under Section 138 of the Negotiable Instruments Act, emphasizing compensatory over punitive measures in the case of cheque dishonor and modified the sentence to enhance the fine amount while setting aside imprisonment.
Fact of the Case:
The accused issued a cheque for Rs. 80,000 to discharge a debt, which was dishonored due to insufficient funds. The complainant filed a complaint, leading to conviction and a fine by the trial court, confirmed by the appellate court.
Issues: Whether the conviction under Section 138 of the Negotiable Instruments Act was legally justified and if so, whether the sentence imposed should include imprisonment or just a fine.
Ratio Decidendi: The court reaffirmed that in dishonor of cheques, a compensatory remedy is preferred over punitive measures, especially considering the circumstances of the accused.
Final Decision: Conviction upheld; imprisonment set aside; fine increased to Rs. 1,00,000 with 3 months to pay.
O R D E R
The accused in a prosecution for an offence u/s.138 of the Negotiable Instruments Act is the revision petitioner, as she is aggrieved by the order of conviction and sentence imposed by the courts below.
2. The case of the complainant is that the accused/revision petitioner, towards the discharge of a debt due to the complainant, issued a cheque dated 17.6.2004 for an amount of Rs.80,000/-, which when presented for encashment dishonoured for want of sufficient fund in the account maintained by the accused and the cheque amount was not repaid inspite of a formal demand notice and thus the revision petitioner has committed the offence punishable u/s.138 of the Negotiable Instruments Act . With the said allegation, the complainant approached the Judicial First Class Magistrate-III, Kollam by filing a formal complaint, upon which cognizance was taken u/s.138 of the and instituted S.T.No.22/2007. During the trial of the case, Pws.1 & 2 were examined from the side of the complainant and Exts.P1 to P6 were marked. From the side of the defence Dws.1 and 2 were examined and also produced Exts.D1 to D3 documents. On the basis of the available materials and evidence on record, the trial court has found that the cheque in question was issued by the revision petitioner/accused for the purpose of discharging her debt due to the complainant. Thus accordingly the court held that, the complainant has established the case against the accused/revision petitioner and consequently found that the accused is guilty and thus convicted her u/s.138 of the . On such conviction, the trial court sentenced the revision petitioner to undergo simple imprisonment for a period of one month and ordered to pay a fine of Rs.80,000/- to the complainant. The default sentence is fixed as 10 days simple imprisonment. It is also ordered that on realization of the fine amount, the same shall be paid to the complainant under Sec.357(1) of Cr.P.C.
3. Though an appeal was filed by the accused/revision petitioner challenging the above conviction and sentence, by judgment dated 29.5.2010 in Crl.A.No.46/2009, the court of Sessions Judge, Kollam dismissed the appeal confirming the conviction and sentence imposed by the trial court. It is the above conviction and sentence are challenged in this revision petition.
4. I have heard the learned counsel appearing for the revision petitioner and also perused the judgments of the courts below.
5. Reiterating the stand taken by the accused/revision petitioner during the trial and appeal, submitted that the complainant has not established the transaction and also the execution and issuance of the cheque. But no case is made out to interfere with the concurrent findings of the trial court as well as the lower appellate court. Therefore, I find no merit in the revision petition and accordingly the conviction was endorsed by the courts below against the revision petitioner u/s.138 of Negotiable Instruments Act .
6. The learned counsel for the revision petitioner submitted that a breathing time may be granted to the revision petitioner to pay the fine amount.
7. Having regard to the facts and circumstances involved in the case, I am of the view that the said submission of the learned counsel can be considered favourably but subject to other facts and circumstances involved in the case. As per the records, a sum of Rs.80,000/- which belonged to the complainant is with the revision petitioner since 17.6.2004. The revision petitioner is a lady, house wife. The Apex Court in the decision in Damodar.S.Prabhu v. Sayed Babalal.H [J.T. 2010 (4) SC 457] has held that in the case of dishonour of cheques, the compensatory aspect of the remedy shall be given preference than the punitive aspect. Therefore, considering the legal position and the other relevant facts which I indicated earlier, I am of the view that the sentence of imprisonment awarded against the revision petitioner, who is a lady can be set aside and at the same time the fine
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