Full Order Text
Final Order 8 · 20 Nov 2023 · CNR DLNT010001192023
Order Details: COPY OF JUDGMENT Pdf Text: IN THE COURT OF SH. DHIRENDRA RANA, SPECIAL JUDGE (NDPS), NORTH DISTRICT, ROHINI, DELHI. Crl. Appeal no. 9/23 (DLNT01-000119-2023) Rajneesh Madan S/o Sh. Suman Prakash Madan, R/o R-26, Second Floor, Rajouri Garden, New Delhi-110027. …....... Appellant VS Kamlesh S/o Sh. Narayan Sonkar R/o 13/55, Ground Floor, Subhash Nagar New Delhi-110027. .........Respondent Date of Institution : 06.01.2023 Date of Reserving the Judgment : 13.10.2023 Judgment Pronounced on : 20.11.2023 JUDGMENT 1. This is a Criminal Appeal preferred by the Appellant herein (accused before the Ld. Trial Court) against the judgment dated 08.08.2022 and order on sentence dated 28.11.2022 passed by the Ld. MM, North, Rohini Courts, in Complaint case no. 3706/18 under section 138 N.I Act titled as Kamlesh Vs Rajneesh Madan whereby the accused / appellant herein has been sentenced to undergo simple imprisonment for a period of eight months and to pay fine of Rs. 5,50,000/- to the complainant and in default of Page 1/20 Rajneesh Madan Vs Kamlesh -- 1 of 20 -- payment of fine, the accused / appellant to undergo SI for a period of two months. 2. For the sake of convenience, I would be referring to parties as per their nomenclature before the trial court. Therefore, Rajneesh Madan would be referred to accused / convict and Kamlesh would be referred to complainant. 3. The facts in brief are that the complainant is a trader engaged in trading of fruits and is running his business from his shop at 12/1, Subhash Nagar, New Delhi in the name and style of Amit Fresh Fruit. The accused is also doing business of fruits and is operating from Azadpur Mandi and is known to the complainant for many years and they also reside in the adjacent areas of Subhash Nagar and Rajouri Garden. 3.1 The accused approached the complainant in the month of March, 2017 and requested for a friendly loan of Rs. 3,00,000/- for one year. Initially the complainant refused but on repeated requests made by the accused, complainant advanced a loan of Rs. 3,00,000/- on 15.03.2017. At the time of taking the loan, the accused assured the complainant to repay the loan within one year. But on repeated requests, the accused issued cheque bearing no. 000056 dated 15.04.2018 of Rs. 3,00,000/- drawn on Punjab & Sind Bank, Rajouri Garden Branch, Delhi. On presentation, the cheque got dishonoured with remarks “Funds Insufficient” vide cheque returning memo dated 05.06.2018. Thereafter, complainant sent legal notice dated 27.06.2018 with a request to make the payment within 15 days. But Page 2/20 Rajneesh Madan Vs Kamlesh -- 2 of 20 -- despite service of legal notice, accused failed to make the payment. Hence, the complaint was filed by the complainant before the Ld. Trial Court on 13.08.2018. 3.2 The Ld. Trial Court after conclusion of the trial, passed the impugned judgment 08.08.2022 thereby convicting the accused and order on sentence dated 28.11.2022 was passed against the convict. 4. Feeling aggrieved, the appellant/accused challenged the impugned judgment and order on sentence on the following grounds: (a) Ld. Trial Court failed to appreciate that there is lot of contradiction in the complaint filed by the complainant and his statements made during cross examination. (b) Ld. Trial Court failed to appreciate that during cross examination, complainant stated that he knows the accused since year 2016 and he met the accused at Azadpur Mandi where the consignment of sweet Tamarind (imli) of the accused used to come through container and accused used to import the same from foreign country. However, in the complaint, complainant has stated that accused is also doing the business of fruits and is operating from Azadpur Mandi and he knew the complainant from many years. He stated in his complaint that he advanced the loan of Rs. 3,00,000/- to the accused on 15.03.2017. During cross examination, Page 3/20 Rajneesh Madan Vs Kamlesh -- 3 of 20 -- complainant stated that he paid the said amount of Rs. 3,00,000/- to the accused in cash but he has no documentary proof to show that he advanced the said loan to the accused. Further, as per the version of the complainant, cheque in question was given to the accused by filling all particulars in the cheque, however, during his cross examination, complainant admitted that when the cheque in question was issued, only amount and signature were present on the cheque. The complainant further stated that word ‘Kamlesh’ and date on the said cheque was got written by him from one person Mr. Yadav at Azadpur Mandi and he presented that cheque on the same date. It is submitted that during cross examination, complainant had stated that house of accused at Rajouri Garden is approximately 100 meters away from his shop and this fact is sufficient to prove that complainant misused the cheque in question and it was not given against any liability as the complainant has not furnished any documentary proof to show that he advanced the alleged loan to the accused. (c) Ld. Trial Court has failed to appreciate specific contention of accused that he has not taken any loan from the complainant as he had no need to take the alleged loan amount from the complainant. (d) Ld. Trial Court failed to appreciate the fact that Page 4/20 Rajneesh Madan Vs Kamlesh -- 4 of 20 -- complainant stated that he advanced the loan of Rs. 3 lac in cash to the accused on 15.03.2017 and the said loan amount had not been disclosed by the complainant in his Income Tax Return despite being Income Tax Assessee and if the complainant advanced the said loan in cash to the accused then why he agreed to receive the said alleged loan amount by way of cheque from the accused, in addition to that there was nothing to show that the complainant was in possession of the money to give as a loan to accused to whom he was not even related or acquainted for a long time. (e) The Ld. Trial Court failed to appreciate that if the accused issued the cheque in question to the complainant in discharge of his liability, then he could issue the same by filling the name of the complainant and date also or the complainant could get filled up his name and date on the cheque in question from the accused at the relevant point of time or by visiting the house of accused, which was not far away from his shop. The complainant also failed to explain as to why he got filled up his name and date on cheque in question from one Mr. Yadav at Azadpur Mandi. (f) Ld. Trial Court failed to appreciate that complainant had failed to prove his case against the accused beyond reasonable doubt. The complainant had Page 5/20 Rajneesh Madan Vs Kamlesh -- 5 of 20 -- failed to prove any entry in his bank account showing withdrawal of any amount during the relevant period or to advance the huge loan amount. (g) Ld. Trial Court failed to consider that the complaint case was not filed within the stipulated period under the provisions of section 138 NI Act as the legal notice dated 27.06.2018 was served upon the accused on 28.06.2018, hence, 15 days from the receipt of said legal notice had expired on 12.07.2018. Accordingly, the complaint was to be filed till 11.08.2018 but the complaint case was filed on 16.08.2018 without any application for condonation of delay. (h) Ld. Trial Court has committed grave error by sentencing the accused to undergo simple imprisonment of eight months and further fine of Rs. 5,50,000/- to be paid to the complainant and the said sentence is against the principle of natural justice and is on higher side. 5. The Ld. Counsel for the accused argued on the lines of grounds pleaded in the appeal and prayed for setting aside the judgment passed by Ld. Trial Court. In support of his arguments, Ld. Counsel for the accused has relied upon the judgments titled as Jai Bhagwan Panwar Vs Sangeeta Rani, Crl L.P. No. 14 of 2013 decided on 21.08.2014 ; Satish Kumar Vs State of NCT of Delhi & Anr., Crl. L.P. 95/2006 decided on 01.08.2013 ; Inderjit Narula Vs Page 6/20 Rajneesh Madan Vs Kamlesh -- 6 of 20 -- Rohit Dua & Anr, Crl L.P. 540/14 decided on 28.01.2015 and M/s Pinak Bharat & Company Vs Anil Ramrao Naik etc., Crl Appeal no. 1630/2011 decided on 02.12.2022. 6. Per contra, Ld. Counsel for the complainant has rebutted all the aforementioned contentions. According to him, Trial court has meticulously evaluated the entire situation in alignment with established principles governing the evaluation of evidence and in adherence to the law. He asserts that this case justifiably invoked statutory presumptions, which accused failed to disprove in any conceivable manner. 6.1 Ld. Counsel for the complainant has argued that there is no delay in filing the complaint and the same was filed within the limitation period and the Ld. Trial Court vide order dated 18.10.2018 clarified that the complaint was filed within limitation as it was filed on 13.08.2011 (Monday) which was preceded by Sunday (12.08.2011) and Second Saturday (11.08.2011). 6.2 Further, in the appeal, the accused has admitted to have been served with the legal notice dated 28.06.2018 but during the entire trial, he had denied receiving of legal notice. 6.3 It is stated that in the notice framed under section 251 Cr. PC, accused had taken a defence that cheque in question was given to the complainant on his representation for a deal of Kiwi fruit which was to be imported by some importer, however, the said deal could not be finalized. Additionally, he contends that the claim of accused that the cheque in question was given for security purpose and Page 7/20 Rajneesh Madan Vs Kamlesh -- 7 of 20 -- misused, lacks substantiation. 6.4 Lastly, it is submitted on behalf of the complainant that there is no infirmity or illegality in the impugned judgment and order on sentence which calls for any interference and the present appeal is liable to be dismissed. In light of these arguments, he prays for the dismissal of the appeal. 7. I have given my thoughtful consideration to the rival contentions and carefully perused the entire record. I have also gone through the case laws relied upon on behalf of accused and complainant. ANALYSIS AND FINDINGS: 8. Having thoroughly considered both parties arguments and carefully examined the records, I now record my findings. 9. As per section 118(a) of the NI Act, until the contrary is proved, the presumption shall be made of consideration that every negotiable instrument was made or drawn for consideration. As per Section 139 of NI Act, it shall be presumed, unless the contrary is proved, that the holder of a cheque received the cheque, of the nature referred to in Section 138 of NI Act for the discharge, in whole or in part, of any debt or other liability. Indisputably, accused can always rebut the same. 10. In Rangappa v. Sri Mohan, (2010) 11 SCC 441, a three Page 8/20 Rajneesh Madan Vs Kamlesh -- 8 of 20 -- Judge Bench of the Apex Court observed that if the accused in a complaint under Section 138 of the NI Act admits his signatures on the cheque, presumption that the cheque pertains to a legally enforceable debt or liability arises under Section 139 of the NI Act. Such presumption is rebuttable in nature and the onus is on the accused to raise a probable defence. 11. While explaining the nature of presumption given under section 118 (a) of the NI Act, the Apex Court in Bharat Barrel & Drum Mfg. Co. v. Amin Chand Pyarelal, (1999) 3 SCC 35 held as under: - "12. Upon consideration of various judgments as noted hereinabove, the position of law which emerges is that once execution of the promissory note is admitted, the presumption under Section 118(a) would arise that it is supported by a consideration. Such a presumption is rebuttable. The defendant can prove the non existence of a consideration by raising a probable defence. If the defendant is proved to have discharged the initial onus of proof showing that the existence of consideration was improbable or doubtful or the same was illegal, the onus would shift to the plaintiff who will be obliged to prove it as a matter of fact and upon its failure to prove would disentitle him to the grant of relief on the basis of the negotiable instrument. The burden upon the defendant of proving the non-existence of the consideration can be Page 9/20 Rajneesh Madan Vs Kamlesh -- 9 of 20 -- either direct or by bringing on record the preponderance of probabilities by reference to the circumstances upon which he relies. In such an event, the plaintiff is entitled under law to rely upon all the evidence led in the case including that of the plaintiff as well. In case, where the defendant fails to discharge the initial onus of proof by showing the non-existence of the consideration, the plaintiff would invariably be held entitled to the benefit of presumption arising under Section 118(a) in his favour. The court may not insist upon the defendant to disprove the existence of consideration by leading direct evidence as the existence of negative evidence is neither possible nor contemplated and even if led, is to be seen with a doubt. The bare denial of the passing of the consideration apparently does not appear to be any defence. Something which is probable has to be brought on record for getting the benefit of shifting the onus of proving to the plaintiff. To disprove the presumption, the defendant has to bring on record such facts and circumstances upon consideration of which the court may either believe that the consideration did not exist or its non-existence was so probable that a prudent man would, under the circumstances of the case, shall act upon the plea that it did not exist." 12. In Basalingappa v. Mudibasappa, (2019) 5 SCC 418, the Page 10/20 Rajneesh Madan Vs Kamlesh -- 10 of 20 -- Supreme Court, after evaluating various precedents, summarized the principles as under: - "25 We having noticed the ratio laid down by this Court in the above cases on Sections 118(a) and 139, we now summarize the principles enumerated by this Court in following manner: 25.1. Once the execution of cheque is admitted Section 139 of the Act mandates a presumption that the cheque was for the discharge of any debt or other liability. 25.2. The presumption under Section 139 is a rebuttable presumption and the onus is on the accused to raise the probable defence. The standard of proof for rebutting the presumption is that of preponderance of probabilities. 25.3. To rebut the presumption, it is open for the accused to rely on evidence led by him or the accused can also rely on the materials submitted by the complainant in order to raise a probable defence. Inference of preponderance of probabilities can be drawn not only from the materials brought on record by the parties but also by reference to the circumstances upon which they rely. 25.4. That it is not necessary for the accused to come in the witness box in support of his defence, Section 139 imposed an evidentiary burden and not a persuasive burden. Page 11/20 Rajneesh Madan Vs Kamlesh -- 11 of 20 -- 25.5. It is not necessary for the accused to come in the witness box to support his defence." 13. It is thus settled law that the burden to rebut the presumption under Section 139 NI Act is on the accused. Such burden is, admittedly, to the extent of "preponderance of probabilities". It has also repeatedly been observed that the accused can rely on the evidence brought on record by the complainant to rebut the presumption, and it is not necessary that he must lead separate/direct evidence. For substantiating plea of non-existence of consideration or there being no liability at all, appellant is required to bring some material or had to demonstrate hollowness in the case of complainant. Mere bald and unsubstantiated assertions shall never be sufficient to disprove the presumption. Thus, accused is obliged to set up a probable defence. It cannot be premised on the mere ipse dixit of the accused. 14. Reference be also made to judgment - Lekh Raj Sharma v. Yash Pal Gupta, 2015 SCC OnLine Del 10074, wherein our own High Court has held that once the signatures on the cheque is admitted, accused cannot escape his liability on the ground that the same had not been filled in by him. When a blank cheque is signed and handed over, it means that the person signing it has given implied authority to the holder of the cheque, to fill up the blanks which he had left. 15. While the established legal principles remain uncontested, it should be noted that the accused can indeed rebut the presumption Page 12/20 Rajneesh Madan Vs Kamlesh -- 12 of 20 -- raised against him. 16. In the present case, it is evident and unequivocal that the accused has acknowledged his signature on the subject cheque. I have seen the said cheque Ex. CW-1/1. It bears the signature of accused, which he has never contested. However, he maintains that he did not fill the date and same was given to the complainant for security purpose. It is pleaded that complainant approached the accused and gave a proposal to get a good deal of kiwi, six months prior to the date of the cheque in question. Accused handed over the cheque in blank condition to the complainant for that kiwi deal which was never materialized and complainant misused the cheque by filing the present case. It is argued that accused and complainant are residing in vicinity and if cheque was issued towards discharge of legal liability, then complainant could have approached the accused for filling the remaining particulars in the cheque instead of getting the same filled by somebody else at Azadpur Mandi. 17. Given that the accused acknowledges his signature on the cheque, the statutory presumption comes into play. He cannot then raise an objection that he did not fill the date and name on the cheque. Under Section 20 of the NI Act, when an individual hands over a blank cheque to another, he inherently grants the holder the authority to complete the pertinent details. 18. At the time of framing of notice u/s 251 Cr. PC and statement under section 313 Cr. PC, accused pleaded that he had issued the cheque in question to the complainant and the said cheque bears his Page 13/20 Rajneesh Madan Vs Kamlesh -- 13 of 20 -- signature. He stated that the cheque in question was given to the complainant without name and date, on the representation of complainant that he had a good deal of kiwi. While stating so, accused has admitted issuance of cheque. The only aspect remains to be pondered over is whether or not complainant has misused the cheque by getting filled the remaining particulars from one Mr. Yadav at Azadpur Mandi. 19. The law is settled that if a person issues a cheque after signing the same, then he permits the holder of cheque to fill in the remaining particulars and the conduct of the accused is squarely covered by Section 20 of NI Act. In Surya Laxmi Cotton Mills Ltd Vs Ms Rajver Industries Limited (2008 II) AD, SC 381, it was held by the Hon’ble SC that if a person gives duly signed but a blank or partly written cheque, he deem to have given implied authority to the holder to fill up the particulars in it and complete it and thus, make him liable for the payment mentioned in it. Applying the ratio of the Hon’ble Supreme Court to the present case, it is not in dispute that cheque in question was not signed by the accused. Complainant was at liberty to fill the remaining particulars personally or through someone else as he is an illiterate person. Why would he approach the accused to get the particulars filled in the cheque so much so, when the accused had duped him by taking a handsome loan and did not repay the same. Hence, I find no merit in the contention of the accused that complainant has misused the cheque by not getting it filled from the accused and from somebody else. Page 14/20 Rajneesh Madan Vs Kamlesh -- 14 of 20 -- 20. Moreover, the story of the Kiwi deal proposed by the accused has been adequately dealt with by the Ld. Trial Court and observed that the same lacks substance for want of evidence. It is admitted case of the accused that he used to import fruits from foreign and if that was the case, then how come he issued a cheque of a particular amount to the complainant without having any details of the said deal. It is nowhere mentioned as to from whom the kiwi was to be purchased, on which date it was to be purchased and how many meetings took place between the parties for the said purpose. Accused is a well educated businessman and it could have been natural conduct on his part to enquire about his cheque or the status of kiwi deal from the complainant. There is no communication on behalf of accused in this regard. Ld Trial Court has rightly observed that the conduct of the accused in this regard is highly unnatural and improbable of a educated businessman. Therefore, the theory of kiwi deal has fallen flat for want of evidence which has not been led by the accused in defence. Hence, this defence is of no avail to the accused and accordingly, he cannot escape from liability to pay the cheque amount to the complainant. 21. Ld. Counsel for the accused has tried to put up a case that the case is not maintainable against the accused as the complainant did not disclose the alleged loan in his ITR. It is stated that the alleged transaction was barred by section 269 SS of the Income Tax Act and being illegal transaction, the alleged debt was not legally enforceable and recoverable. Page 15/20 Rajneesh Madan Vs Kamlesh -- 15 of 20 -- 22. The issue raised by accused is that the complainant has not mentioned the loan transaction in his ITR and moreover, he allegedly gave the loan of Rs. 3 lacs in cash to the accused. This issue has been deliberated over in judgment Guddo Devi @ Guddi Vs Bhupender Kumar in Crl Revn P. 1246/2019 and Crl. M. (Bail) 2090/2019 by the Hon’ble DHC wherein it is held that any person violating section 269 SS of the Income Tax Act would attract legal consequences under the said act but same does not render the said debt unenforceable or precludes the lender from recovering the same. In the present case also, the loan transaction was not disclosed by the complainant in his ITR. Therefore, mere absence of mentioning the loan transaction in ITR or advancing the loan in cash to accused may attract consequences to the complainant but his complaint cannot be dismissed on these grounds which is otherwise maintainable under NI Act. Hence, argument on this aspect is misconceived and accordingly, stands rejected. 23. During the course of arguments, a doubt has been raised on behalf of accused about the financial capacity of the complainant to lend the loan to the accused and doubts were raised regarding the source of his income. It is stated that complainant has not placed on record any evidence to prove the fact that he withdrew the alleged loan amount from any bank for advancing the loan to the accused in or around the alleged time of advancing the loan. The argument of defence regarding the complainant's available funds, lacks substantive merit. There is no suggestion in the cross examination of CW-1 that he was not capable enough to lend Rs. 3 lacs to the Page 16/20 Rajneesh Madan Vs Kamlesh -- 16 of 20 -- accused. This ground has been raised only in this appeal and seems to be an after thought. Moreover, the aspect of financial status of the complainant to grant loan has been dealt with in judgments titled as Rohitbhai Jivanlal Patel Vs. State of Gujarat, (2019) 18 SCC 10; and P. Rasiya Vs. Abdul Nazer, 2022 SCC Online SC 1131. 24. It is also argued on behalf of accused that complaint is time barred as the limitation period to file the complaint got expired on 11.08.2018 whereas the complaint was taken up by the court on 16.08.2018. The argument is misconceived on the basis of facts. The legal notice was served, as per the tracking report on the accused, on 28.06.2018. The period of limitation started running from 29.06.2018 If we calculate 45 days from 29.06.2018 then the last day to file the complaint was 12.08.2018 which was a public holiday being Sunday. As per record, the complaint was filed on 13.08.2018. However, it was taken up by Ld. MM on 16.08.2018 but it was none of the fault of the complainant as he had filed the complaint on 13.08.2018 and same was well within the limitation period as per NI Act. Moreover, an application for condonation of delay was moved on behalf of complainant but same was not pressed as complaint was within limitation period. The Ld. MM issued the summons to the accused after considering the limitation period and other circumstances. Therefore, I find no merit in the argument that complaint is time barred. 25. The question has also been raised on behalf of accused that complainant has failed to produce any documentary proof that he Page 17/20 Rajneesh Madan Vs Kamlesh -- 17 of 20 -- advanced loan of Rs. 3 lacs to the accused. It is further pointed out that it is nowhere mentioned in the complaint that loan was advanced in cash, however, this fact has been admitted during cross examination of the complainant. It is also pleaded that accused being a well to do businessman, had no reason or occasion to take loan from the complainant. 25.1 All these aspects are based upon probabilities which are not sufficient enough to rebut the presumption accrued in favour of complainant by virtue of NI Act. In the complaint, complainant has not specified whether loan was advanced in cash or by some other mode but when it was enquired during his cross examination on behalf of accused, then he made it clear that the loan was advanced in cash. As stated above, dealing in cash for more than Rs. 20,000/- may attract penal consequences as per Income Tax Act but the complaint cannot be dismissed merely on this ground. It is correct that the complainant has not placed on record any documentary proof to support loan transaction but similar standard has to be applied to the accused. He also failed to produce any documentary proof that he handed over the cheque to the complainant as security for deal of kiwi fruit. Accused cannot blow hot and cold at the same time. He is insisting upon the complainant to produce documentary proof whereas he is completely silent as to why he did not obtain any acknowledgment from the complainant at the time of handing over the alleged security cheque. It is a matter of record that accused has not led any evidence to support his theory of kiwi fruit deal and handing over security cheque to the complainant. As far Page 18/20 Rajneesh Madan Vs Kamlesh -- 18 of 20 -- as need of accused to obtain from the complainant is concerned, it could have been supported by the accused on the basis of documentary evidence to show his financial status, if he was serious enough to make the court believe his stand. Mere bald submissions which are not corroborated from the conduct as well as documents, are of no consequence in this case. Therefore, all these aspects are unsubstantiated for want of concrete and reliable evidence. 26. After considering the evidence presented by both parties and thoroughly reviewing the records, it is evident that there is no legal irregularity in the conclusions drawn in the impugned order. I am of the firm opinion that the Trial Court's decision to find the accused guilty under Section 138 of the NI Act is entirely justified and the Ld. Trial Court has dealt with all defences put up by the accused appropriately on the basis of case laws and apt reasoning. 27. Regarding the sentence, it is noted that the convict was sentenced undergo simple imprisonment of eight months and also to pay fine of Rs. 5,50,000/- to be paid as compensation to the complainant and in the event of non-payment, the convict was directed to further undergo simple imprisonment for a period of two months. However, when the appeal was admitted, the accused was instructed to deposit 20 % of the compensation amount in the form of FDR (Rs. 1,10,000/-) in favour of the court and same was complied with by the accused. As far as submission of complainant is concerned against the order on sentence that the accused should have been sentenced with imprisonment for a period of one year Page 19/20 Rajneesh Madan Vs Kamlesh -- 19 of 20 -- with fine twice the amount of cheque and the sentence and compensation is inadequate, I am of the considered view that Ld. Trial Court has passed the order on sentence after considering all the mitigating circumstances involved in the present case. 28. Considering the facts and circumstances of this case, all the grounds pleaded on behalf of the appellant have been dealt with by the Ld. Trial Court with proper reasoning and I find no illegality or infirmity in judgment dated 08.08.2022 and order on sentence dated 28.11.2022 which requires any interference. Therefore, the impugned judgment is hereby upheld. The appeal is dismissed accordingly. 29. A copy of this judgment along with trial Court record be sent back to the Trial Court. 30. A copy of this judgment be supplied to the appellant free of cost. Announced in the Open Court (Dhirendra Rana) on 20.11.2023 Addl. Sessions Judge/ Spl. Judge (NDPS), North District, Rohini Courts, Delhi. Page 20/20 Rajneesh Madan Vs Kamlesh -- 20 of 20 --
