High Court Karnataka High Court

M/S Shreyas Financiers vs M/S N R Babu & Brso on 14 July, 2008

Karnataka High Court
M/S Shreyas Financiers vs M/S N R Babu & Brso on 14 July, 2008
Author: K.Ramanna
3.NJ>1r2AvEEN KUMAR,
MAJOR,   _

FA'I'HER's NAME NO'? KNOWN 1

TO THE APPELLANT',

No.66, 3342 CROSS,

mm 'A' MAIN, Sm BLOCK, V
JAYANAGAR,    V     
BANGALORE--56€) 044.  ' .. RES?' NI}EN"I'S

(BY SR1 M.M.AsHoKAf; ;xpv.;_r""_  

THIS CRLA. I8_FILED.wU,!S;V378{AA§ C1?;v¥'.C.1v_'f'RAYING TO SET
ASIDE me GRDEIQOE' A;cQ:Jr1fm:, ~m,23;;~:,'2oos mssmn us:
c.c:.re0.238/02 on ma FELEL op 'ms---- A'DI)L.C.J.M. swam -
ACQUITTING 'I__'.i~~i'E" R1a;s§?0N9.j:;:N=r1A:*,ca;sEn FOR THE or-'muss
P/UjS.188   'V    

TH;$"APi>Eé;:, C51': Fd1é"HéAI2ING THIS DAY, COURT
DELIVERED 'I'__I~£.!?. re*c:s:V.r,,_<_:i'£.*;1ns::§,_;__ --

 .' ifi§§HENT

  "is.  by the appellant cha1.k:n$'ng the

 of acquittal dated 23-03-2006 made by

me, ';&;de11;'  Magistrate, Bangalon: Bistrict,

   the rcspondcnts for the oflbncc

 sundar SCC.138 of NJ. Act holding that the

 notice has nod: bacn sent to the respondents within

‘i5–ti;ays from the date ofdishozaour ofchcqucs in question.

2. The case cf the appcliant in brief is that the appellant

is a partnership firm so also Respondent No.1, Respondent

%aPP°a’*%j%

N032 and 3 are partners of Rcspondcnt Neal H

respondents have borrorwead Rs.i,€){):,’0’O(}f«-.

said loan amount they issued sevtm (of ._

When the sand’ cheques were itcd fVGIf_ czafiéazsfiiifigéhi ” V

were returned with “bank crxlgiorscpm-sJu::;.t’v’i1i;~a115i35’1<$iactntv1i113:§is' dated
6/ 11/2000. Thcmfom 'gpt issued legal
notice an 22/11/$_-{3£!Q. any reply
from the V' against all
the V Court acquitted the
mspondcliifi 0._11A1§na:miatory provision of Sec.

1333;] of NLE.._f§ct complied with. Hence, this

A by the kxarsmd counsel 1231' the appcilant

§§ho is a oompiainant before the trial Court

pmseniégd Ex.-.=..P~1 to 11-7 to its Banker, 1'31 turn the

u for callcction to the Bankrxr of the mspondcmt.

"jchoqucs were returned with an cndoxscnktnt

j – ..':"}fls'i1ficicn.t Funds" as per Ex.P~8 dated 6/11/2000 to the

Banker of the appcliant. The Banker of the appcilant in turn

sent tha same to the appellant on 8/ 11/2000. Therefore notice

, r
.' _'L._,, _f,,,.

“”””” M

fix’

4′ ” . 3

has been issued to the axzcuscd Within 15 days .617.’

mecipt of intimation from its bank. Thcmfmr: it u V’

the trial Ceurt has committed a::¢'”é1’1*r:rA_§n

analyzing and assessing the end’ cnéaxg 1 ztshc

wrongly acquitted the rcspondkfinifi. ‘p1’* a-per ‘V

masons. Thcztfozt, appeal is §3iidvv«thc’§ord¢x’ of
acquittal is to ix set asiacmi is mat though the

mspo11dentsissucd_A’€”_i;t: £31′ but he has

bormwed *¢:1;*cziLp’i*i§>r’ and that he could not
rctalisc t1::é.sa_ m e it is prayed that in case this

Court allowéi ‘«:€iC!11blfl thx: cheques amount be

4_ . Tficzcfggp, he prays for allowing the appeal.

V Counsel for the appcliasnt has relied on

. . the acgim in case of M19 MUNOTH INVESTMENTS

v:a; :.M/s. PUTTUKOLA PROPERTIES L’r1:>., AND

.’_A.=e$r<3%:'}i'ELr2 mportcd in AIR 2001 5.0. 2752, wherein it has been

"Inter afia pmvidcs that the payee has to
make demand for the paymcnt of money by
giving a notice "to the drawer of the cheque

/I9:

./ ‘
‘ .

nut produced any bank statement before the :;’;:5% _

further argued that both the appellant as wcfigzs.

Bank are located very close to OH»;

Thcrcforc the date mentioned m_;’:”:_;;.1>-.9′ ind–i;u.e§t¢s; t§;.~i:’s: ,

was ciciivercd on 6-11-2000. Th(éi’x?é$z*s,_ they fight
in acquitfing the msponeiegt ; to be
dismissczd. ‘ ” – A .%

6. In ‘ counsel for the
rcspondcnt Court in the case of

RAN._m*HA.BALASfi’i§R;§M»§fi1g§ra__Am:> ANOTHER vs. snanmr

emu? ANLj”.QTHé3R$”‘§§cJp«§:&ted in ILR 2007 KAR 765 and’

4.\,Vanomez%f &ez::sion of OM SHAKTHI sags? AND

‘-.M1 NjoR r:*yi’ Caégbzj’ C0-OPERATIVE SOCIETY L’I’D., vs. M.

vE’s5_K;tTESi§”_~V_:cp§r£cd in ILR 2097 KAR 5125. He further

submifam the Court has got discretion to ilnpasc fine

” N ” af§iim:1:;t anti “not: the doubit: amount and the Court could either

‘saenifiixczzfi the aocusad or impose fine amount. Therefore, it is

130:-fixandatoxy provision to impose doubftc the fine amount, for

fisfhich he referred to another co»-oniinatc Bench dcrcision of this

Court: reported in IL}? 2008 KAR 1300.

‘fs
‘J. ___ /z)’

– 3::-/’

/’

7. Having heard the learned counsel f:§i*”‘§:s£.it}{ _

parties. Now, the point that arises for

dcaision is vcritxcthcr the Judgment Qf

by the trial Court is perverse, ingtmjrect ‘§IIcga1!? – 1 S

3. it is an undisputcd”Vi’Z€=L:V;T§3;’ that is a
Firm who filnti a Rcspfifidfifit No.i~
partnership firm and Rcsp<'§r§dE;1'f%'I%';§$:. its partners.

Admittedly, the by Rfisponxicnt
Nos.2 and 3 v’§;?c3$};A3c;:1fient No.1. When the
chcqucs ..p:£:scntcd for encashmcnt tlm

same were mfdofscmcnt-Ex.P.8 as “insuficittnt

fizndsfl ; ” ‘I?’.hc1’cVf<5x"z::, ' i-'1pp£€:}1ant herein on the basis of the

f§x«.._P.9 issued by its banktzr informed the

cheques presented for oeficctions bcfcm

the Co-cxpcrativc Bank Ltd.., Avenue Road,

~ but the clzmqucs which went: sent for coflecfion of

of Inésia, Bangaiom were returned as "insixficicnt

. Ex.P~9 is the endorsement issued by the appcliant

._"4I}:'ankcr Whcrein the date 6/ 1. 1/ 2&0 has been mentioned. But

aoczsrding to the appellant he has received the endorsement

I I:

‘Z’
>/'”‘

/””/W

I.

fiom its banker 031 8/11/2000 to that eflbct ~..

tmdomcmcnt on EX.P.9, thetm-after

flfififlfi 1’33 the individual names of Rcspoxfisnt

Well as Respondent No.1 on to
N.Sm’ya Bhagwan came afivvéniifimcmcnt
“not claimed”. Thcrcforc, 4′ against
Respondent ‘A

9. ‘i”he7 the respcrndents
has assigzxzdv fith”e’ap§3ci1ant~ct3111p1ainant has
not (:’OII1}$1i_6!;i’– provisions of Sec. 138(1)] of

NJ. Act. ThE:L..§:h::qiic3″V to P–? were presented by the

_ uto its buafn-k:c;* for encashment. Since the chcqucs in

V. Equ ¢sa7§fi1a the respondents pertain to Union Bank of

1n¢12a,*’%%§::i.«s:;éi;;;&¢ banker of the appenam sent it for

<;oIicc°ti<m. \Exs3P*8 and 17-9 are: the cmiorscmcnts issued by

" .. nqspeéfifie bankers to the appellant. Ex.P-8 an

'::.tid'-<:§rssIficnt sent by flit? rcspeudcnfs banker to: the appellant

Ex.P–9 issued by the appeilant Banker. The only

–«cfifiesfion left for considerafioxa is Whether the legal :::1::atioc smxt

by the appellant is within 15 days from the date of mceipt of

endarstztmcnt from its banker. The tria} Court on xéfu

the endorsement mentioned in EXP-8 came to thé

that the endorscmcnt is dated 6} 1 1/ ‘iaraflfajéct

has not presented the cheque: befcmm cf” ._

Whcrc the respondents have a he ”

presented the cheque hefoyet its i;¢::,, SuB1’a.ma1’j1ycswara
Comparative Bank Ltd. Ci’ _ date has been
mentioned as 6/ 1 1;2<;_ro0, i:a¢l'g:g;gia::sc ;ficn§f":,f'thc resfiench-mt
banktzr was 01; 6 smit 133 t:IjéVVQappc}Iant's banker
i.e, Subrimaxxyesfifiaia. Bank Li:d., and in mm the

same: was siagtéé tg as per Ex.P.9, which was

_.the i-an 8/11/2002. If the receipt of the

V$iidn:;£:;n;3i1tvEX.P«9 is fakcn as 8/ 11/ 2000 then tbs legal

isésued by the appellant to the

:espo::4e1e:n:'is+,§;§+;i:11in the statutory period. Thc iaw laid down

by :11; Azpezxz; Court in case of ms. MUNOTH INVESTMENTS

3&3. M/S. PUTTUKOLA PROPERTIES L'I"D., AND

ff ,a:~;<f§T1»iER reported in AIR 2001 s.c. 2752 referred supra, is

appiicabIc to the facts 0:' the case on hand.

I 1

10. As fiar as the cantcntrion taken by +-

ctmnscl that the person who has the 13.-9 ‘

authmtisation to file a complain’ t is c’;:onc:en ed;..i11. flift.

cast: the complaint was libel .by..__ *

Ramamurthy, for and on behalf of There
is no need to produce of -;?Q1ttg:fijiL§;_’¢3ii”a11tho1isation from
other partnezrs. The; law in the case of

RANJITI-IA EALASUBEAMANEAN: A’1~::§’ ANCYMER vs. SHANTH!

GROUP AND. — i”11~!~Li% 2007 KAR 765 is not
app}icabI;§;_ S0 by this Court in the case

of OM sfihmm ‘S£;fi;’.ST.’:_”..’AND MINQRITY CREDIT co-

4._VVDPER&’§ffi/E s0(iI1a3<r$zV1____m).,vs. M. VENKATESH reported in

V. *- IL£z is 3130 not made applicable to the fmts of

th€.caiga::; "'fii~v_..V(}?Qj;"'SHAKTHI SC/ST AND MINORITY CREDIT

V V} SO~OPERATiV!§ SOCIE'I'Y'S 1:rz:::., case the complaint is flied by

" M pxgsidéni ofthc Sociacty, therefore he has tn produce power

Qf 'amriiey or authorisatioxx to file a complaint. Since the

pmsidcnt has filed the complaint Without authoriisatism, this

rightly dismissed the appeal preferred by the appcllallb

complainant in the said case but in the instant case

.» \..

‘ :;w”

‘:7. _4—3″‘>- ff

A;

-1}-

considezdng the fact that the appclkant is a

and complaint filxzd y its managing partner then; Vii)’ _&

file any authorisation to fik: tht: <:0mpmV':int ' A

11. The trial Court ca1cu§atingA *i:hx f'(;;:1usc ‘QfAact*2oif1=.ift:3%v’V’

film’ g a compiaint from ?/1 1/atotallyvh
9 of the complaint it is spc;«r:i_f:§<:a1ly.A £a'*'a':¢.=:;*.'5_1:'::<."lVV by' the' that
the cause of action fior –;iiffcn:nt dams

11.6., 6/ I 1/ 2000 and. :8}; 1/ can not resist

service of €152» mi Lfiawfgéflgc, the appellant send
the notice Wh_'i'v::h by the respondents. It is not

the case of tiic._ :'t:s3p{$r;<ie3:t the address to which notice

_s¢nt In behalf a reference is made to a

'«:3.cc:Ai$i:;«.n:V of'? tfi1c~ iH'a1:;'blc Apex Court in the cam of C.€§.AL.AVI

HAJ:_é?S ,%«PA£7;;9E1fr$3 MUHAMMED AND ANOTHER reported in

(-2.2007) ""6 scfcz Thcrcfam it couzd be said that the

H " " 4.it:sipe:usicnté."'ca.. $111011 contend that then: is no proper sermon' of

-izofiee. The trial Court without pmper apprcciaticn of

VT jjdccumcnts placed on rczcard cam: to a wrong conclusion in

” the respondents. Hence this appeal is to has allowed

V. by setting the order of acquittai passed by the trial court.

12. Counsel for thr: appellant vchemt;Iatl.3f: .. V’

since the cheques have been issued in W139?

not cncashcd on account ef {he ,

Court may impose sentence igicublcV”t31é”fi11é’:’:Eamount

Imposing of he amouz;.€i*..Ais

Thercfom taking into ” km and
circumstances gf fine in all of
Rs.80,{}OG/-

13. .– The Judgment
and oxtitifigf the trial Court acquitting the

rcapondrcnts asiiic and Respondent Nos. .1 to 3 am

for the §§fi’cvfiv<v:_g;__'p'unishabIe under Sec.l38 of N .1. Act.

and 3 are sentenced to pay fine of

default of payment of fine amount thcy

shall . for thzvcc months cash. Aftnr dcpasiting the

..an:'1ou1"r£.of Rs.80,000/-, by Respondent N032 and 3 the

be payable to the appcizam herein. In

Sd/–

Judge

Lr