{"id":210568,"date":"2010-12-02T00:00:00","date_gmt":"2010-12-01T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-sree-gokulam-chit-and-finance-vs-abdul-hassan-on-2-december-2010"},"modified":"2014-08-16T01:58:51","modified_gmt":"2014-08-15T20:28:51","slug":"ms-sree-gokulam-chit-and-finance-vs-abdul-hassan-on-2-december-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-sree-gokulam-chit-and-finance-vs-abdul-hassan-on-2-december-2010","title":{"rendered":"M\/S.Sree Gokulam Chit And Finance &#8230; vs Abdul Hassan on 2 December, 2010"},"content":{"rendered":"<div class=\"docsource_main\">Kerala High Court<\/div>\n<div class=\"doc_title\">M\/S.Sree Gokulam Chit And Finance &#8230; vs Abdul Hassan on 2 December, 2010<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nCrl.L.P..No. 1139 of 2010()\n\n\n1. M\/S.SREE GOKULAM CHIT AND FINANCE CO.(P)\n                      ...  Petitioner\n\n                        Vs\n\n\n\n1. ABDUL HASSAN, S\/O.MEERAN PILLAI,\n                       ...       Respondent\n\n2. STATE OF KERALA, REPRESENTED BY\n\n                For Petitioner  :SRI.K.S.BABU\n\n                For Respondent  :SRI.RAJESH P.NAIR\n\nThe Hon'ble MRS. Justice K.HEMA\n\n Dated :02\/12\/2010\n\n O R D E R\n                            K.HEMA, J.\n            -----------------------------------------------\n                  Crl. L.P. No.1139 of 2010\n            -----------------------------------------------\n                 Dated 2nd December, 2010.\n\n                             O R D E R\n<\/pre>\n<p>           This petition is filed for granting special leave to file<\/p>\n<p>appeal against an order of acquittal.\n<\/p>\n<p>           2.   The petitioner filed a complaint before the<\/p>\n<p>Magistrate Court against first respondent             herein, alleging<\/p>\n<p>offence under Section 138 of the Negotiable Instruments Act,<\/p>\n<p>on the allegation that the accused\/first respondent            was a<\/p>\n<p>subscriber in two chitties with the stake of Rs.3,00,000\/- each in<\/p>\n<p>favour of the complainant, which is a company dealing in chitty<\/p>\n<p>transactions.    After receiving the prize money, accused<\/p>\n<p>defaulted payment. Towards discharge of the defaulted<\/p>\n<p>payment, he issued a cheque for Rs.4,36,000\/- drawn on<\/p>\n<p>24.12.2007 from the account maintained by him in State Bank<\/p>\n<p>of Travancore.    The complainant presented the cheque for<\/p>\n<p>collection, but it was returned for want of sufficient funds.<\/p>\n<p>Therefore, a lawyer notice was issued demanding payment.<\/p>\n<p>But, the notice was returned with the remarks &#8220;addressee<\/p>\n<p>unclaimed&#8221; and the amount was not paid.                    Hence, the<\/p>\n<p>complaint.\n<\/p>\n<p><span class=\"hidden_text\">Crl. L.P. No.1139\/10              2<\/span><\/p>\n<p>              3.    To prove the prosecution case, PW1 was<\/p>\n<p>examined and Exts.P1 to P8 were marked.            The accused<\/p>\n<p>examined DW1 and marked Exts.D1 and D2 on his side.<\/p>\n<p>According to the accused, he had subscribed for chitty and he<\/p>\n<p>also received Rs.6,00,000\/- in total, out of the two chitty deals.<\/p>\n<p>He had to pay future subscriptions. He paid the entire<\/p>\n<p>subscriptions as per Exts.D1 and D2 chitty pass books. In spite<\/p>\n<p>of the same, complainant filed the complaint, misusing the<\/p>\n<p>blank cheque, which was handed over as security, while<\/p>\n<p>receiving the money.\n<\/p>\n<p>              4.    Learned counsel for petitioner argued that<\/p>\n<p>accused was acquitted mainly for the reason that the<\/p>\n<p>complainant failed to produce documents, evidencing the<\/p>\n<p>transaction.       The complainant is prepared to produce the<\/p>\n<p>documents and an opportunity may be given to establish the<\/p>\n<p>case, it is submitted. It is further pointed out that trial court<\/p>\n<p>found that the amount, which is in balance to be paid is lesser<\/p>\n<p>than the amount shown in the cheque and hence, the<\/p>\n<p>complainant&#8217;s case is improbable. According to petitioner, this<\/p>\n<p><span class=\"hidden_text\">Crl. L.P. No.1139\/10               3<\/span><\/p>\n<p>finding is not correct, since accused is liable to pay interest<\/p>\n<p>also. Adding up the interest to the amount due, it will be the<\/p>\n<p>amount, which is covered by the cheque and in such<\/p>\n<p>circumstances, the findings of the court below are wrong and<\/p>\n<p>unsustainable, it is submitted.\n<\/p>\n<p>              5. Learned counsel for first respondent argued that<\/p>\n<p>the trial court has considered the evidence and facts and<\/p>\n<p>circumstances of this case in detail in paragraphs 11 to 14 and<\/p>\n<p>acquitted the accused giving valid reasons. The complainant<\/p>\n<p>was given sufficient opportunity to produce documents.<\/p>\n<p>Though several adjournments were given for this purpose, the<\/p>\n<p>complainant failed to produce the documents and hence, there<\/p>\n<p>is no justification in giving more opportunity, it is submitted.<\/p>\n<p>              6. It is also argued by learned counsel for accused<\/p>\n<p>that the pass books issued by the company, which are marked<\/p>\n<p>as Exts.D1 and D2 and the admissions made by PW1, who was<\/p>\n<p>examined on behalf of the company would clearly show that the<\/p>\n<p>claim made by the complainant that an amount of Rs.4,36,000\/-<\/p>\n<p>is still due to the complainant is absolutely false. The accused<\/p>\n<p><span class=\"hidden_text\">Crl. L.P. No.1139\/10                  4<\/span><\/p>\n<p>paid the entire amount which is due to the complainant but a<\/p>\n<p>complaint is filed against him misusing a blank cheque, which is<\/p>\n<p>handed over as security, while receiving the money due to the<\/p>\n<p>accused, in the two chitty transactions, it is submitted.<\/p>\n<p>              7. On hearing both sides and on going through the<\/p>\n<p>order under challenge, I find that the trial court has tested the<\/p>\n<p>evidence and materials available on record against probability<\/p>\n<p>and on proper appreciation of evidence, it was found that<\/p>\n<p>complainant failed to substantiate the transaction.            The court<\/p>\n<p>also found improbability in the case set up by the complainant.<\/p>\n<p>Regarding the statement of accounts and the transaction, trial<\/p>\n<p>court observed as follows :-\n<\/p>\n<blockquote><p>              &#8220;Here comes the importance of statement of accounts<\/p>\n<p>              maintained by complainant. During cross examination PW1 do<\/p>\n<p>              admit that company is properly maintaining accounts in all<\/p>\n<p>              deals including the transaction with complainant.     He do<\/p>\n<p>              promised in cross examination that the complainant will<\/p>\n<p>              produce statement of accounts in the course of proceedings.<\/p>\n<p>              But curiously statement of accounts is absent from evidence,<\/p>\n<p>              when there is genuine doubt about the quantum of liability in<\/p>\n<p>              view of the accounts made mentioned on Exts.D1 and D2<\/p>\n<p>              documents.&#8221;<\/p><\/blockquote>\n<p>              8.   I do not find any reason to interfere with the<\/p>\n<p><span class=\"hidden_text\">Crl. L.P. No.1139\/10                    5<\/span><\/p>\n<p>above findings. Though the petitioner would seek for one more<\/p>\n<p>opportunity to produce the document, on the facts and<\/p>\n<p>circumstances of this case. I do not think such an opportunity<\/p>\n<p>need be granted. It is relevant to note that PW1 has admitted<\/p>\n<p>in cross examination that the company is maintaining accounts<\/p>\n<p>for the transaction with the accused, but such documents were<\/p>\n<p>not produced.\n<\/p>\n<p>              9. It is also relevant to note that the trial court found<\/p>\n<p>that the amount covered by the cheque is Rs.4,36,000\/-. But, it<\/p>\n<p>has come out from the evidence, particularly the details in<\/p>\n<p>Exts.D1 and D2 pass books, that some amounts were already<\/p>\n<p>paid and there was remittance of Rs.4,20,310\/- from the<\/p>\n<p>accused. Calculating the payment made and the payment due,<\/p>\n<p>the trial court observed that the accused would not have<\/p>\n<p>handed over a cheque covering an amount of Rs.4,36,000\/-.<\/p>\n<p>The relevant observations are in paragraph 14.<\/p>\n<blockquote><p>               &#8220;Really the sum mentioned on Ext.P3 cheque is equivalent to<\/p>\n<p>               double the actual liability of accused towards complainant.<\/p>\n<p>               Needless to say that no man of common sense and prudence<\/p>\n<p>               will hand over cheque inviting exorbitant liability towards<\/p>\n<p>               another with whom his transaction was strained.     Even if<\/p>\n<p><span class=\"hidden_text\">Crl. L.P. No.1139\/10                    6<\/span><\/p>\n<p>               transaction is not strained, no man with reasonable sense<\/p>\n<p>               will invite unbearable debt in place of his actual liability.<\/p>\n<p>               Therefore, it is quite evident that there is something rotten<\/p>\n<p>               behind this contentions of complainant.       Really speaking<\/p>\n<p>               their  exist   element    of  improbability   rather  to say<\/p>\n<p>               impossibility in the contention of complainant that accused<\/p>\n<p>               has issued cheque for huge sum, whereas liability is much<\/p>\n<p>               meagre.&#8221;<\/p><\/blockquote>\n<p>              10. The trial court further proceeded on to find that<\/p>\n<p>PW1 failed even in reciting the date of issuance of cheque,<\/p>\n<p>Ext.P3. It is also found that there is no evidence to prove that a<\/p>\n<p>demand was made to hand over a cheque towards liability. All<\/p>\n<p>these facts generated doubts about execution of the cheque,<\/p>\n<p>and the trial court entered finding that prosecution failed to<\/p>\n<p>prove its case. The observations in paragraph 12 are relevant.<\/p>\n<p>Those are extracted as follows :\n<\/p>\n<blockquote><p>                &#8220;As admitted by both sides, the character of transaction<\/p>\n<p>                between complainant and accused are two chitty deals with<\/p>\n<p>                stake of Rs.3,00,000\/- each. It is also admitted that after<\/p>\n<p>                remitting certain sum towards subscriptions accused has<\/p>\n<p>                obtained prize money in both chitties on condition that he<\/p>\n<p>                will pay future subscriptions promptly.        According to<\/p>\n<p>                accused he had discharged entire subscriptions, but<\/p>\n<p>                complainant by ignoring to adjust the same against liability<\/p>\n<p>                has ignited this prosecution by materially altering a blank<\/p>\n<p><span class=\"hidden_text\">Crl. L.P. No.1139\/10                   7<\/span><\/p>\n<p>                signed cheque given at the time of securing prize money.<\/p>\n<p>                Whereas PW1 has deposed that accused himself has came<\/p>\n<p>                forward and issued Ext.P3 instrument against existing<\/p>\n<p>                liability. But in what situation the defaulter\/accused has<\/p>\n<p>                came to the office of complainant and issued Ext.P3 cheque<\/p>\n<p>                is not came out in evidence.       Moreover during cross<\/p>\n<p>                examination PW1 do admit that there is no scrap of paper<\/p>\n<p>                available with complainant to see that accused was<\/p>\n<p>                demanded to hand over Ext.P3 cheque towards liability,<\/p>\n<p>                though he claims that a notice was issued for the same.<\/p>\n<p>                Above all PW1 has failed even in reciting the date of<\/p>\n<p>                issuance of Ext.P3 cheque by accused. So all these really<\/p>\n<p>                generates doubt about issuance of cheque as claimed by<\/p>\n<p>                complainant.&#8221;<\/p><\/blockquote>\n<p>              11. On hearing both sides and on going through<\/p>\n<p>impugned order, I do not find any reason to interfere with the<\/p>\n<p>findings of the trial court, which are only acceptable. I do not<\/p>\n<p>find any reason to grant leave.\n<\/p>\n<p>              Petition is dismissed.\n<\/p>\n<\/p>\n<p>                                                      K.HEMA, JUDGE.\n<\/p>\n<p>\ntgs<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kerala High Court M\/S.Sree Gokulam Chit And Finance &#8230; vs Abdul Hassan on 2 December, 2010 IN THE HIGH COURT OF KERALA AT ERNAKULAM Crl.L.P..No. 1139 of 2010() 1. M\/S.SREE GOKULAM CHIT AND FINANCE CO.(P) &#8230; Petitioner Vs 1. ABDUL HASSAN, S\/O.MEERAN PILLAI, &#8230; Respondent 2. STATE OF KERALA, REPRESENTED BY For Petitioner :SRI.K.S.BABU For [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,21],"tags":[],"class_list":["post-210568","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M\/S.Sree Gokulam Chit And Finance ... vs Abdul Hassan on 2 December, 2010 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/ms-sree-gokulam-chit-and-finance-vs-abdul-hassan-on-2-december-2010\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"M\/S.Sree Gokulam Chit And Finance ... vs Abdul Hassan on 2 December, 2010 - Free Judgements of Supreme Court &amp; 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