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High Court of Karnataka overturned an acquittal in a cheack dishonour case, convicting the accused under sec 138 of NI act imposing fine and simple imprisonment.

Title: Smt H Bhagyalakshmi v Smt Cheluvamma

Citation: CRL.A No. 2104 of 2018

Decided on: 15.12.2023

Corum: Justice S Rachaiah

 Facts of the case

The accused in the present case was an acquaintance of the complainant- a teacher who lent the appellant a sum of Rs. 2.5 Lacks towards the appellants granddaughter’s education and other family necessities. The complainant paid for the same through two instalments of 30,000 each and paid through check the remaining 1,90,000 by the way of cash upon the request of appellant in the presence of three witnesses. However even after the lapse of one year the amount was not repaid back to the complainant.

Upon the complainant insist to repay the said amount, the accused in the month of June 2017 issued a cheque and asked the complainant to present the same for encashment. When the said cheque was presented for encashment, it came to be dishonoured as “could not be proceeded due to alteration”

Subsequently the complainant served legal notice to the appellant in spite of which the amount was not returned nor was a response given to the legal notice. Hence, it constrained the complainant to lodge a complaint against the accused before the Jurisdictional Magistrate.

Legal Provision

The Accused was convicted under Section 138 of Negotiable instrument act which imposes Punishment upon dishonour of checks for insufficiency of funds but was paid compensation through section 357-A of Code of Criminal Procedure (CrPC) to compensate victims of crime who have suffered loss or injury due to this that crime.

Issue

i)Whether the finding of the Trial Court in recording the acquittal of the accused for the offence punishable under Section 138 of N.I Act is justified?

ii) Whether the appellant has made out grounds to interfere with the said findings?

Court analysis and decision

The High Court of Karnataka considering various Precedents, allowed the appeal and set aside the order given by the Trial court which came to the conclusion that the cheque has been altered, however there is no such averment in the endorsement of the bank. In the absence of such averment, the Trial Court continued the recording of the acquittal on the same ground which appears to be not proper and perverse.

The court all ordered for the conviction of the appellant under section 138 of the negotiable instrument act for a period of one year and imposed a fine amount of Rs. 3 Lacks.  However, the court also awarded compensation for the complainant a sum of Rs. 2,90,000 and a balance of Rs. 10,000 which must be adjusted towards the exchequer of the state later through Sec 357-A CrPC which establishes the government compensation scheme for the victim.   

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Written by- Namitha Ramesh

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