Full Order Text
Final Order 1 · 15 Sept 2023 · CNR MHMM190036292018
Order Details: Copy of Judgment Pdf Text: 1 C. C. No.4401187/SS/2018 Received on : 01.03.2018 Registered on : 01.03.2018 Decided on : 15.09.2023 Duration : 05 Y. 06 M. 14 D. IN THE COURT OF THE METROPOLITAN MAGISTRATE, 44TH COURT, ANDHERI, MUMBAI. (Presided over by Sujitkumar C. Tayde) C. C. No.4401187/SS/2018 C.N.R.No.MHMM190036292018 Exh. No. 22 Mrs. Reena Rane, Age about – 42 Yrs., R/o. Room No.1. Usha Nivas, Bhandarwada, Marol, Andheri (East), Mumbai – 400 059. ....Complainant V/s. Mr. Sunil Umesh Shellar, Age about – 40 Yrs., R/o. 2/4, Jadhav Chawl, Sham Nagar, Near Knowledge House, Andheri (East), Mumbai – 400 060. ....Accused Complaint for the Offence Punishable Under Section 138 of The Negotiable Instruments Act. Learned advocate of the complainant : Smt. Vipula Naik Learned advocates of the accused : Shri A.M.Takekar & Pandharinath Palekar (Sujitkumar C. Tayde), M.M.44th Court, Andheri, Mumbai. -- 1 of 19 -- 2 C. C. No.4401187/SS/2018 J U D G M E N T (Delivered on 15/09/2023) The accused is alleged to have issued the cheque which was returned unpaid due to insufficiency of fund in the account maintained by him. Thus, the accused stands prosecuted for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881(Hereinafter it is referred as 'N.I. Act', in short). The facts of the case lie in a narrow compass as under: 2. The complainant had purchased a car bearing registration no.MH02CR5434 on loan and she paid down payment of Rs.1,00,000/ to the concerned bank in this regard. However, she could not manage to pay the E.M.I. in respect of the said loan. Therefore, she raised loan from private financier. Thereafter, she decided to clear loan which she had taken from the private financier. Therefore, she put an advertisement in OLX App on 07/11/2017 regarding the sale of her said car. 3. The accused was in need of a car and therefore, on 11/11/2017, he approached to the complainant and put his offer to purchase the said car. Having inspected the car and the documents, the accused agreed to buy the said car. He issued a cheque bearing no.001708 for sum of Rs.3,50,000/ towards the said transaction. The accused got the possession of the said car alongwith the relevant documents from the complainant. (Sujitkumar C. Tayde), M.M.44th Court, Andheri, Mumbai. -- 2 of 19 -- 3 C. C. No.4401187/SS/2018 4. Having received the said cheque, the complainant deposited it in Axis Bank, Andheri, on 18/11/2017. But the same was dishonoured by the banker for the reason of “Insufficient fund” in the account maintained by the accused. The complainant intimated the accused in this regard. The accused requested her to deposit the said cheque again and assured that the cheque would be cleared. 5. Having got the assurance regarding the clearance of the cheque, the complainant again presented the said cheque for encashment on 21/12/2017 with her banker. But unfortunately the said cheque was again dishonoured for the same reason i.e. “Insufficient fund”. Hence, the complainant issued the statutory demand notice through her advocate to the accused on 16/01/2018 by registered post. But the said notice was returned on 18/01/2018 with the remark of “Unclaimed”. 6. In short, according the complainant, the accused committed offence punishable under section 138 Negotiable Instrument Act by issuing the cheque which was dishonoured for want of sufficient fund in the account maintained by the accused. Hence, the complainant knocked the doors of this Court by filing the present complaint on hand. 7. The learned predecessor in office issued process against the accused as per Section 142(a) of the Negotiable Instruments Act. In response the summons, accused appeared. The contents of particulars (Exh.No.07) for the offence punishable under section 138 of the Negotiable Instruments Act were readover and explained to the (Sujitkumar C. Tayde), M.M.44th Court, Andheri, Mumbai. -- 3 of 19 -- 4 C. C. No.4401187/SS/2018 accused in his vernacular language. The accused pleaded not guilty and claimed to be tried. 8. In order to prove the guilt of the accused, the complainant examined herself by way of filing affidavit in lieu of examinationin chief (Exh.No.08) under section 145(1) of the Negotiable Instruments Act. Besides oral evidence, the complainant relied upon the following documentary evidence. Description of documents Exh.No. Original Delivery Note 10 Original cheque 11 Cheque Memo 12 Courier receipt 13 Bank Statements 14 Collectively Postal receipt and demand notice 15 & 16 Unclaimed notice with acknowledgement 17 9. In view of the incriminating evidence placed on record, the statement of the accused came to be recorded under Section 313 of the Code of Criminal Procedure vide Exh.No.19 wherein the accused has taken stand that he did not receive the legal notice. The accused further submitted that the cheque belongs to his friend and the complainant filed false case to recover the amount from him. 10. The learned advocate for the complainant, Smt. Vipula Naik, filed her written note of argument vide Exh.No.21 and submitted (Sujitkumar C. Tayde), M.M.44th Court, Andheri, Mumbai. -- 4 of 19 -- 5 C. C. No.4401187/SS/2018 that the complainant succeeded to establish the guilt of the accused and therefore, she prayed to punish the accused in accordance with Law. 11. Per contra, the learned advocate for the accused, Shri A. M. Takekar in his well searched argument submitted that the accused has successfully rebutted the presumption under Section 139 of N. I. Act and therefore, the accused is liable to be acquitted. 12. Having heard the learned advocates for both the sides, I perused the record. In view of the accusation and the defence following points arise for my determination. In the light of evidence, I record my findings thereon with reasons as under: POINTS FINDINGS 1. Does complainant prove that disputed cheque was issued by the accused for discharging legally enforceable liability? : Proved 2. Does the complainant prove that the cheque was returned unpaid due to insufficiency of fund in the account maintained by the accused? : Proved 3. Does the complainant prove that she had issued the statutory demand notice to the accused within limitation? : Proved 4. Does the complainant prove that the accused failed to pay the cheque amount in spite of being served with the notice within the statutory limitation? Proved (Sujitkumar C. Tayde), M.M.44th Court, Andheri, Mumbai. -- 5 of 19 -- 6 C. C. No.4401187/SS/2018 5. Whether the accused succeeded in rebutting the presumption arising out of section 139 of the Negotiable Instruments Act? : Disproved 6. Whether the offence punishable under section 138 of the Negotiable Instruments Act is made out against accused ? : In affirmative 7. What order ? : The accused is convicted for the offence punishable under section 138 of the Negotiable Instruments Act as per final order :R E A S O N S: 13. In the present case on hand, the accused is alleged to have committed the offence punishable under section 138 of the Negotiable Instruments Act. In order to prove the offence punishable under section 138 of the Negotiable Instruments Act, the following mandatory ingredients are required to be satisfied: i) A person must have drawn a cheque on an account maintained by him in a bank for the payment of certain amount of money to another person from out of that account for the discharge in whole or in part, of any debt or other liability. ii) That the cheque has been presented to the bank within a period of six months from the date, on which it is drawn or within period of its validity, whichever is earlier. iii) That the cheque is returned by the bank unpaid, either because the amount of money standing to the credit of the account, is insufficient to (Sujitkumar C. Tayde), M.M.44th Court, Andheri, Mumbai. -- 6 of 19 -- 7 C. C. No.4401187/SS/2018 honour the cheque or that exceeds and amount arranged to be paid from that account by an agreement made with the bank. iv) The payee or the holder in due course of the cheque makes a demand for the payment of said amount of money by giving a notice in writing, to the drawer of the cheque, within 30 days of the receipt of the information by him from the bank regarding dishonour of the cheque as unpaid. v) The drawer of the said cheque fails to make payment of said amount of money to the payee or holder in due course of the cheque within 15 days from the receipt of the said notice. vi) The payee or holder in due course lodged written complaint in the court within 30 days thereafter. vi) The drawer of the said cheque failed to rebut the presumption under section 118 and 139 of the Negotiable Instruments Act. Keeping in mind these ingredients, I proceed to determine the points noted above. AS TO POINT NO.1: (Does complainant prove that disputed cheque was issued by the accused, in favour of the complainant for discharging legal enforceable liability?) 14. It is the case of the complainant that the accused agreed to buy her car and he paid the consideration amount in this regard by way of the cheque for sum of Rs.3,50,000/ bearing no.001708 for discharging legally enforceable liability. Therefore, before appreciating the evidence in this regard, let us have a glance at the term of legally enforceable liability. 15. A liability is a legally binding obligation payable to another (Sujitkumar C. Tayde), M.M.44th Court, Andheri, Mumbai. -- 7 of 19 -- 8 C. C. No.4401187/SS/2018 entity. Legally enforceable means capable of being enforced from a legal point of view. In the present case on hand, the complainant deposed that she intended to sell her car and therefore, she published the advertisement in this regard on the OLX App. It is pertinent to note here that while conducting the crossexamination, the accused did not deny this fact. On the other hand, the accused has come with the specific stand that he and his friend Vishal approached the complainant to purchase the said car. Thus, the suggestion given by the accused impliedly suggests that there was transaction between the complainant and the accused in respect of sale and purchase of the said car. 16. In the present case on hand the complainant has filed the cheque on record which is said to have been issued by the accused. In fact, in view of section 139 of the Negotiable Instruments Act, it shall be presumed, unless the contrary is proved, that the holder of the cheque received the cheque, of the nature referred to in Section 138, for the discharge, in whole or in part, of any debt or other liability. So also section 118 of the Negotiable Instruments Act, there is a presumption that the cheque was issued for certain consideration. 17. Though the complainant was crossexamined at length, yet the accused did not deny the fact that the cheque in question does not bear his signature. In such circumstances, I am guided by the ratio laid down by the Hon'ble Apex Court, in the case of M/s. Kalamani Tex and another V/s. P. Balsubramaniyam [Criminal Appeal No. 123 of 2021] the Hon'ble Apex Court held that the Negotiable Instruments Act mandates that onces the signature(s) of an accused on the cheque/ (Sujitkumar C. Tayde), M.M.44th Court, Andheri, Mumbai. -- 8 of 19 -- 9 C. C. No.4401187/SS/2018 negotiable instrument are established, then these 'reverse onus' clauses become operative. 18. It is the stand of the accused that the delivery note (Exh.No.10) filed on record does not bear his signature. In fact, having gone through this document, it appears that one Vishal Chalke executed the said delivery note regarding the delivery of the car bearing registration no.MH02CR5434. 19. In fact, the crossexamination of the complainant discloses that it is the stand of the accused that he and said Vishal Chalke approached the complainant to purchase the said car. So also it is the stand of the accused that he and said Vishal Chalke are the partners and they intended to purchase the said car in partnership. From these premises, it can be inferred that the partner of the accused namely Vishal Chalke might have executed the delivery note of the said car on behalf of the accused. 20. Apart from this, the accused has never challenged the delivery note by taking a stand that it is a fabricated document. Hence, even though the said delivery note does not bear the signature of the accused, still the accused cannot be escaped from the liability in respect of the cheque given by him in favour of the complainant towards the said transaction. 21. It is pertinent to note here that the said delivery note was executed on 12/11/2017 and the cheque in question was issued on (Sujitkumar C. Tayde), M.M.44th Court, Andheri, Mumbai. -- 9 of 19 -- 10 C. C. No.4401187/SS/2018 18/11/2017. In such circumstances, in my opinion, if the accused had no concern with the said sale and purchase of the car, then there was no any reason for him to issue the cheque after execution of the delivery note (Exh.No.10) in favour of the complainant. Thus, the chronological events (i.e. meeting of the accused and his partner with the complainant regarding the sale and purchase of the car, execution of delivery note by his partner and issuance of the cheque) give rise to inference that the cheque in question was issued by the accused in order to discharge his liability as deposed by the complainant. 22. In fact, it is not the stand of the accused that the complainant obtained the said cheque by playing mischief or by plying fraud with him. So also while conducting the crossexamination of the complainant, no suggestion was given to the complainant in this regard. In such circumstances, it can be inferred that the accused issued the cheque in question voluntarily. Moreover, the accused has not denied his signature made on the said cheque. In such scenario, I am guided by the ratio laid down by the Hon'ble Apex Court, in the case of Bir Sing V/s. Mukesh Kumar reported in (2019) 4 SCC 197 wherein it is held that “The cheques duly signed and voluntarily made over to payee, was in discharge of debt or liability arises irrespective of whether cheque was post dated or blank cheque for filing by payer or any other person in the absence of evidence of undue influence”. 23. In view of the discussion noted above, I have come to the conclusion that the complainant has proved that disputed cheque was (Sujitkumar C. Tayde), M.M.44th Court, Andheri, Mumbai. -- 10 of 19 -- 11 C. C. No.4401187/SS/2018 issued by the accused, in favour of her for discharging legal enforceable liability. Hence, I record my finding in affirmative for Point No.1. AS TO POINT NO.2: (Does the complainant prove that the cheque was returned unpaid with endorsement of “Funds insufficient”?) 24. It is the case of the complainant that the Cheque No. 001708 which had been issued by the accused was dishonoured due to insufficiency of fund in the account maintained by the accused. The complainant deposed that after having received the said cheque, she deposited the same in the Axis Bank. But the said bank returned the cheque with the endorsement fund insufficient. In order to corroborate the oral testimony in this regard, the complainant filed the computer generated copy of cheque return memo (Exh.No.12) and her bank account statement (Exh.No.13). These documents have presumptive value unless it is rebutted. These documents specifically disclose that the cheque in question was dishonoured due to insufficiency of fund in the account maintained by the accused. 25. In fact, the documents filed by the complainant (i.e. cheque return memo and bank statement filed at Exh.12 & 13 respectively) have not been disputed by the accused. Moreover, no any rebuttal evidence has been lead by the accused in this regard. Therefore, in my opinion, the oral testimony of the complainant is duly corroborated by the documentary evidence. Hence, it can be held that the complainant proved the fact that the cheque was returned unpaid due to insufficiency of fund in the account maintained by the accused. Resultantly, I record finding in affirmative for Point No.2. (Sujitkumar C. Tayde), M.M.44th Court, Andheri, Mumbai. -- 11 of 19 -- 12 C. C. No.4401187/SS/2018 AS TO POINT NO.3 & 4: (Does the complainant prove that he had issued the statutory demand notice to the accused within limitation demanding the cheque amount?) (Does the complainant prove that the accused failed to pay the cheque amount in spite of being served with the notice within the statutory limitation?) 26. In view of Section 138 (b) of the Negotiable Instruments Act, the payee or the holder in due course of cheque, is required to make a demand for the payment of the amount of money by giving a notice in writing, to the drawer of the cheque within 30 days from the receipt of information by him from the bank regarding the return of the cheque as unpaid. So let us scan the evidence in this regard. 27. According to the evidence of the complainant, after having received intimation regarding the dishonour of the cheque, she issued the notice to the accused on 16/01/2018 by registered post. In order to support her oral evidence, the complainant filed the office copy of the statutory demand notice (Exh.No.16). So also she filed the postal receipt (Exh.No.15) and the envelope in which the said notice was sent. In fact, the said envelope was returned with the endorsement of “unclaimed”. 28. It is pertinent to note here that the address of the accused mentioned in the postal receipt and the said envelope is exactly similar to the address noted in the complaint. Therefore, it can be presumed that the notice was sent on the proper address of the accused. (Sujitkumar C. Tayde), M.M.44th Court, Andheri, Mumbai. -- 12 of 19 -- 13 C. C. No.4401187/SS/2018 29. In the case of Malanbai Ratnaparkhi V/s. Govinda R. Motade reported in 2002 Cr.L.J.1188, the Hon'ble Bombay High Court held that “Once the notice is shown to have been dispatched by post and the envelop in which such notice was sent, was carrying correct address of the sendee written on it, the presumption would arise in favour of the sender to the effect that such notice was duly served upon the sendee unless that presumption is rebutted by necessary evidence alongwith the fact that the sendee was not responsible for such nonservice”. 30. It is settled that where a notice is not claimed even though sent by registered post, with the aid of Section 27 of the General Clauses Act, the drawer of the cheque may be called upon to rebut the presumption which arises in favour of service of notice. In the present case on hand the accused did not adduce any cogent evidence to rebut the said presumption. Hence, it can be presumed that the said notice was served on the accused within the statutory period of 30 days. 31. Having gone through the record, it transpires that the accused failed to make the payment of the money to the complainant in due course of the cheque within 15 days from the receipt of the said notice. It is admitted portion that the accused has not made full and final payment of the cheque amount till passing this Judgment. 32. In view of the discussion of the above, I have no hesitation to hold that the complainant had issued the statutory demand notice to the accused within prescribed period and the accused failed to pay the (Sujitkumar C. Tayde), M.M.44th Court, Andheri, Mumbai. -- 13 of 19 -- 14 C. C. No.4401187/SS/2018 cheque amount to the complainant within the statutory period of limitation. Hence, I record my finding in affirmative for Points No.3 and 4. AS TO POINT NO.5: (Whether the accused succeed in rebutting the presumption arising out of section 139 of the Negotiable Instruments Act?) 33. In the case of Goa Plast Pvt. Ltd., V/s Chico D'souza (2003 SCC (Cri)499, the Hon'ble Supreme Court considered the object behind section 138 and 139 of the Negotiable Instruments Act and held that the entire burden is on accused to show that cheque was not issued for any debt or liability as mentioned in the complaint. It is settled that the standard proof of rebutting the presumption is preponderance of probabilities. Having regard to this settled position, I turn to make the scrutiny of the evidence placed on record to determine whether the accused rebutted the presumption under section 139 of the Negotiable Instruments Act. 34. At the outset, it is pertinent to note here that the accused neither stepped into the witness box nor did he produce any documentary evidence to establish his defence. But it is settled that even though the accused does not examine himself, yet he can establish his defence from the crossexamination of the witnesses of the complainant and from the other material placed on record. Having regard to this proposition, I turn to make the scrutiny of the evidence placed on record. 35. It is pertinent to note here that the accused has taken a (Sujitkumar C. Tayde), M.M.44th Court, Andheri, Mumbai. -- 14 of 19 -- 15 C. C. No.4401187/SS/2018 stand that he had given the cheque to his partner Vishal who misused it. In fact, while conducting the crossexamination the complainant, the accused suggested that he and his said friend Vishal had approached her for the deal of sale and purchase of the car. In fact, the accused did not initiate any legal proceeding against his partner Vishal who is alleged to have misused the said cheque. Moreover, it is not the stand of the accused that the complainant misappropriated or misused the said cheque in collusion with his said partner Vishal. In such scenario, for want of cogent and relevant evidence, the defence raised by the accused does not appear to be probable. 36. The accused has stated in his statement recorded under section 313 of Code of Criminal Procedure that the complainant filed this false case against him because she knows that she can not recover the amount from his partner Vishal who is in jail. But this defence is not digestible because the cheque in question does not bear signature of said Vishal and therefore, the complainant is not supposed to initiate legal proceeding against said Vishal for dishonour of the cheque in dispute. In short, the defence taken by the accused does not hold water. On the other hand, the complainant had succeeded to discharge her burden to prove that the cheque in question was issued by the accused towards the legal debt or liability as contemplated under Section 138 of the Negotiable Instruments Act. 37. It would not be out of place mentioned here that the accused had not raised another specific stand except the denial of the positive evidence adduced by the complainant. (Sujitkumar C. Tayde), M.M.44th Court, Andheri, Mumbai. -- 15 of 19 -- 16 C. C. No.4401187/SS/2018 38. In the backdrop of the discussion noted above, I have come to the conclusion that the accused utterly failed to rebut the presumption as contemplated under Section 139 of the Negotiable Instruments Act. Hence, I record my finding in negative for Point No.5. AS TO POINT NO.6: 39. In view of the positive finding for Point No.1 to 4, it can be held that the complainant has duly proved her claim by adducing cogent and relevant evidence. Hence, it can be concluded that the offence punishable under section 138 of the Negotiable Instruments Act is made out against the accused. 40. I explained the accused that he is guilty for the offence of dishonour of the cheque. He is further intimated that the N.I.Act has provided punishment to the offence of imprisonment up to two years or fine up to twice the amount of the cheque in dispute or both. Thereafter, I asked the accused to clarify his stand on the nature and quantum of the sentence, if any. Therefore, the accused is called upon to make his submission on the quantum of punishment. Hence, I take pause to hear the accused. Sd/ (Sujitkumar C. Tayde) Metropolitan Magistrate, DATE: 15.09.2023 44th Court, Andheri, Mumbai. 41. The accused submitted that he is responsible member of his family and therefore, leniency may be shown. The learned advocate for (Sujitkumar C. Tayde), M.M.44th Court, Andheri, Mumbai. -- 16 of 19 -- 17 C. C. No.4401187/SS/2018 the accused Shri A. M. Takekar also prayed to show leniency while slapping the punishment. 42. At the time of passing judgment, neither the complainant nor her advocate remained present. 43. Having heard the learned advocate for the accused on the quantum of punishment, I perused the record. 44. Having regard to the conduct of the accused and the nature of the offence, I do not find any special reason or justification to extend the benefit of probation to the accused as per the provision of Probation of Offender Act. 45. In the case of M/s. Kalamani Tex and another V/s. P. Balsubramanian, decided in Special Leave Petition (Cri) No.1876/2018 dated 10/02/2021, the Hon'ble Apex Court has given certain guidelines and for ready reference relevant paras from said judgment are quoted below: “As regard to the claim of compensation raised on behalf of the respondent, we are conscious of the settled principles that the object of Chapter XVII of the NIA is not only punitive but also compensatory. The provisions of NIA envision a single window for criminal liability for dishonour of cheque as well as civil liability for realization of the cheque amount. It is also well settled that there needs to be a consistent approach towards awarding compensation and unless there exist special circumstances, the Courts should uniformly levy find up to twice the (Sujitkumar C. Tayde), M.M.44th Court, Andheri, Mumbai. -- 17 of 19 -- 18 C. C. No.4401187/SS/2018 cheque amount along with simple interest at the rate of 9% per annum.” 46. In the case of Kaushalya Devi Massand V/s. Reookishori Khore, (Criminal Appeal No.723/2011), the Hon'ble Supreme Court observed that an offence under Section 138 of N.I.Act cannot be equated to any offence under the Indian Penal Code as Section 138 attracted liability to civil wrong that has been given criminal overtone. 47. In the present case on hand the complainant has been waiting for justice since last five years. The complainant being woman has been attending the Court regularly to get her legal claim. In fact, the record shows that the accused not only tried to avoid his liability but also took lame excuses and denied to perform his part of contract. Thus, having regard to the ratio laid down in citation supra and the nature of the case, following order would meet the ends of the justice: O R D E R 1] The accused Mr. Sunil Umesh Shellar, Age – 40 Yrs., R/o. 2/4, Jadhav Chawl, Sham Nagar, Near Knowledge House, Andheri (East), Mumbai – 400 060, is hereby convicted for the offence punishable under Section 138 of the Negotiable Instruments Act in view of Section 255 (2) of the Code of Criminal Procedure. 2] The accused is sentenced to pay fine of Rs.6,00,000/ (Rs. Six Lac Only) for having committed the offence punishable under section 138 of the Negotiable Instruments Act. In default of payment of fine, the accused shall suffer simple imprisonment (Sujitkumar C. Tayde), M.M.44th Court, Andheri, Mumbai. -- 18 of 19 -- 19 C. C. No.4401187/SS/2018 for period of three months. 3] The amount of fine of Rs.6,00,000/ (Rs. Six Lac Only) which is imposed on the accused shall be paid to the complainant/victim under Section 357 (3) of the Code of Criminal Procedure within two months from today. 4] The amount of compensation as noted above shall be paid to the complainant, subject to expiry of the appeal period or the orders of Honourable Appellate Court (if any). 5] The accused has not spent any period in the custody during the trial. Hence, setoff under section 428 of the Code of Criminal Procedure, 1973 is not given to the accused. 6] The copy of this Judgment be provided free of cost to the accused immediately after it is prepared in view of section 363 (1) of the Code of Criminal Procedure, 1973. 7] The accused is informed about his right of appeal against this judgment within a statutory period. 8] The Judgment is dictated on dais and pronounced in open Court. (Sujitkumar C. Tayde) Date : 15.09.2023 Metropolitan Magistrate, 44th Court, Andheri, Mumbai. (Sujitkumar C. Tayde), M.M.44th Court, Andheri, Mumbai. -- 19 of 19 --
