IN THE HIGH COURT OF JUDICATURE AT MADRAS DATE : 03.06.2024 CORAM THE HONOURABLE MR. JUSTICE M.DHANDAPANI CRL. A. NO. 513 OF 2024 M/s. Sree Gokulam Chit & Finance Co. (P) Ltd., rep. By its Vice Chairman, Mr. V.C.Praveen Regional Office at :

Sree Gokulam Towers

100 Feet Road, 7^th Street Gandhipuram, Coimbatore – 12 Corporate Office at :

No.66, Arcot Road, Kodambakkam Chennai 600 024. .. Appellant - Vs -

M.Rajkumar .. Respondent Criminal Appeal filed under Section 378 of the Code of Criminal Procedure against the judgment in C.C. No.33 of 2017 dated 5.2.2024 passed by the Judicial Magistrate No.I, Fast Track Court, Magisterial Level, Coimbatore.

For Appellant : Mr. L.Rajasekar

JUDGMENT

Assailing the order in and by which the complaint initiated by the appellant u/s 138 of the Negotiable Instruments Act (for short ‘the Act’) had come to be dismissed, the present appeal is directed against the said judgment.

2. It is the case of the appellant that the respondent was a subscriber in a chit having a chit value of Rs.25,00,000/- and was paying a monthly subscription of Rs.1,25,000/- with a tenure of 20 months commencing from

11.11.2011 and termination date of 11.06.2013.

3. It is the further case of the appellant that the respondent became the successful bidder and the prize value of the chit of Rs.18,74,900/- was paid to the respondent on 19.03.2012. However, the respondent was irregular in payment of monthly subscription and committed default and the respondent had a default outstanding of Rs.22,18,625/- towards the chit along with interest.

4. It is the further case of the appellant that due to the said default committed by the respondent, the appellant called upon the respondent several time to pay the due amount and after repeated requests the respondent issue a cheque bearing No.395184 dated 16.03.2016 drawn on M/s.Dena Bank, Coimbatore, for a sum of Rs.22,18,625/-, but on presentation of the same for encashment with the appellant’s banker, M/s.Axis Bank, the same was returned with endorsement “Funds Insufficient”, which was intimated on 22.03.2016. Upon return of the cheques as dishonoured, the appellant issued legal notice dated 11.04.2016 u/s 138 (b) of the Act calling upon the respondent to pay the amount of the cheque, failing which legal action would be taken to realise the said amount, the receipt of which was acknowledged on 21.04.2016. However, neither there was any reply nor any payment was made by the respondent prompting the appellant to file the complaint.

5. Originally the complaint was taken on file and numbered as C.C.

No.816/2016 on the file of the learned Judicial Magistrate-I, Coimbatore, but upon transfer to the Judicial Magistrate-I, Fast Track Court, Magisterial Level, Coimbatore, the case was renumbered as C.C. No.33/2017.

6. Upon cognizance being taken, summons were issued to the accused and on their appearance, copy of the complaint was provided to the accused, who pleaded not guilty and contended that a false case has been foisted upon them.

7. Before the Court below, the appellant examined one witness as P.W.1 and marked Exs.P-1 to P-10. On the side of the respondent no oral evidence was tendered, but one document, Ex.D-1 was marked through P.W.1. The Court below, on consideration of the evidence, both oral and documentary, held that the appellant has not proved the case against the respondent and, accordingly, acquitted the respondent. Aggrieved by the same, the present appeal has been preferred by the appellant.

8. Learned counsel appearing for the appellant submitted that there is a clear admission that the respondent had partaken in the chit and had become the successful bidder and had been paid the bid amount. However, he committed default in paying the chit amount regularly after receiving the bid amount. It is the further submission of the learned counsel that upon constant follow up, the respondent agreed to pay the defaulted amount and had given the cheque, which had since been dishonoured, leading to the f