Allowed

Sri. Amit Rathore v. Ms. Kiranashree Electricals

Karnataka HC16 Jun 2022CRL.P/5575/2019

Case brief

AI extract

What is this about?

Held that the criminal proceedings under Section 138 of the Negotiable Instruments Act were quashed because there was no material to substantiate the existence of a legally recoverable debt. The cheque was returned after an RTGS transfer was made by the accused on the same date.

What did the court decide?

Criminal petition allowed and proceedings in C.C.No.12745/2019 quashed.

Sri. Amit Rathore Vs Ms. Kiranashree Electricals — Cheque Dishonour | Karnataka HC (2022)

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 16^TH DAY OF JUNE, 2022

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BEFORE

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THE HON’BLE Mr. JUSTICE HEMANT CHANDANGOUDAR

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CRIMINAL PETITION No.5575 OF 2019

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BETWEEN :

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SRI. AMIT RATHORE, S/O SUNDARLAL RATHORE, AGED ABOUT 56 YEARS, NO.96, 1^ST MAIN, EX-SERVICEMAN COLONY, R.T.NAGAR, BENGALURU – 560 032.

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...PETITIONER (BY SRI.M.C.NANAIAH, SENIOR COUNSEL FOR SMT.RACHITA NANAIAH M., ADVOCATE)

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AND :

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MS. KIRANASHREE ELECTRICALS, NO.301, 11^TH CROSS, WILSON GARDEN, BENGALURU – 560 027. REPRESENTED BY ITS PROPRIETOR,

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MR. SURESH SHARMA B, S/O BANSARILAL SHARMA, R/AT NO.460, SARAROSE APARTMENT, FLAT NO.202, 12^TH CROSS, WILSON GARDEN, BENGALURU SOUTH, BENGALURU – 560 027.

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...RESPONDENT

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(BY SRI.TRIVIKRAM S., ADVOCATE)

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THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF CR.P.C. PRAYING TO QUASH THE ENTIRE PROCEEDINGS IN C.C.NO.12745/2019 FOR THE OFFENCES PUNISHABLE UNDER SECTIONS 138 OF NEGOTIABLE INSTRUMENT ACT PENDING ON THE FILES OF HON'BLE XX ADDITIONAL CHIEF METROPOLITAN MAGISTRATE, BENGALURU.

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THIS CRIMINAL PETITION COMING ON FOR ADMISSION, THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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Respondent had filed a private complaint under Section 200 of Cr.P.C. alleging that the accused quote a sum of Rs.83,90,511/- towards contract work and towards part payment of the said amount, a cheque for a sum of Rs.10,00,000/- was issued by the accused in favour of the complainant. It is further alleged that the said cheque when presented with his banker, was returned for technical reasons and thereafter on the assurance given by the accused that the cheque would be cleared, the complainant represented the cheque with his banker and thereafter

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the cheque was returned with an endorsement "stop payment".

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Learned Magistrate after recording the sworn statement of the complainant took cognizance of the offence punishable under Section 138 of the Negotiable Instruments Act and issued summons to the petitioner. Taking exception of the same, this petition is filed.

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Sri.M.C.Nanaiah, learned Senior Counsel appearing for Smt.Rachita Nanaiah.H., learned counsel for the petitioner submits that immediately after the cheque was returned for technical reason, the accused has remitted the cheque amount through RTGS to the bank account of the complainant and hence, he submits that in the absence of any legally recoverable debt, the complaint filed by the complainant is not maintainable.

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On the other hand, learned counsel for the respondent-complainant submits that the amount which was transferred to the account of the complainant through RTGS was towards the part payment of the amount which was due to the complainant and the cheque returned for technical reason was re-presented towards payment of balance amount due to the complainant. Hence, he submits that the cheque which was issued in favour of the complainant was towards legally recoverable debt and the learned Magistrate has rightly taken cognizance.

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I have considered the submissions made by

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the learned counsel for the parties.

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6. Admiteddly, the cheque in question when

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presented for realization was returned for technical reason. It is also admitted that on the very same date, the accused transferred a sum of Rs.10,00,000/-

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to the account of the complainant through RTGS. The complainant has not placed any material before the learned Magistrate to substantiate his claim that an amount of Rs.83,90,511/- was due for payment towards service rendered in favour of the accused. There is no material placed that the cheque was represented towards recovery of balance amount payable by the accused in favour of the complainant. In the absence of any material that the cheque was re-presented towards legally recoverable debt, the learned Magistrate has committed an error in taking cognizance of the offence punishable under Section 138 of the Negotiable Instruments Act.

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In view of the preceding analysis, I am of the considered view that the continuation of the impugned criminal proceedings against the petitioneraccused would be a futile exercise and so as to secure the ends of justice, it would be appropriate to quash

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the impugned proceedings. Accordingly, I pass the following:

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ORDER

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i. Criminal petition is allowed.

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ii. The impugned proceedings in

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C.C.No.12745/2019 pending on the file of XX Addl.

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CMM Court, Bengaluru is quashed.

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It is made clear that any observation made in this order shall not come in way of parties in taking any appropriate steps for recovering the alleged amount due from the accused in accordance with law.

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Sd/- JUDGE

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RKA

Sri. Amit Rathore v. Ms. Kiranashree Electricals

Case brief

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Sri. Amit Rathore v. Ms. Kiranashree Electricals

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