Revision by a convict under Section 138 NI Act whose cheque was dishonoured for 'Account closed'. The High Court held such endorsement does not absolve liability and that unrebutted presumption favoured the complainant. Revision dismissed at admission stage, conviction confirmed.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
NC: 2024:KHC:20731 CRL.RP No. 74 of 2021
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF JUNE, 2024
BEFORE
THE HON'BLE MR JUSTICE V SRISHANANDA CRIMINAL REVISION PETITION NO. 74 OF 2021
BETWEEN:
ABBAS S/O. ABDUL GAFFAR AGED ABOUT 32 YEARS OCC: MOTOR REWINDING MECHANIC R/AT TYAREKOPPA VILLAGE KOTEGANGURU SHIVAMOGGA TALUK-577 204.
…PETITIONER
(BY SMT. POOJA KATTIMANI, ADVOCATE FOR SRI. DINESH KUMAR RAO .K, ADVOCATE)
AND:
Digitally signed by CHAITHRA A Location: HIGH COURT OF KARNATAKA
HARISH .H.N S/O H.N. MURTHY AGED ABOUT 42 YEARS R/AT VATSALYA, 2ND CROSS NINGAPPA BADAVANE URUGADURU SHIVAMOGGA CITY-577 203.
…RESPONDENT
(BY SRI. SHIVAKUMAR SWAMY .S.G, ADVOCATE FOR SRI. S.V. PRAKASH, ADVOCATE)
THIS CRL.RP IS FILED U/S.397 R/W 401 CR.P.C PRAYING TO SET ASIDE THE ORDER DATED 24.11.2020 PASSED BY THE 2ND ADDITIONAL SESSIONS JUDGE, SHIVAMOGGA IN CRL.A.NO.39/2019 CONFIRMING THE JUDGMENT AND ORDER DATED 09.01.2019 PASSED BY THE JMFC III COURT, SHIVAMOGGA IN C.C.NO.140/2016 (CONVICTING THE PETITIONER FOR THE
NC: 2024:KHC:20731 CRL.RP No. 74 of 2021
OFFENCE P/U/S 138 OF THE N.I ACT) AND ACQUIT THE PETITIONER OF CHARGES LEVELED AGAINST HIM.
THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER
Heard Smt. Pooja Kattimani, learned counsel for the
revision petitioner and Sri. Shivakumar, learned counsel for Sri. S.V.Prakash for the respondent.
suffered an order of conviction under Section 138 of the Negotiable Instruments Act in C.C.No.140/2016 which was confirmed in Crl.A.No.39/2019.
3. The facts in brief are as under:
A complaint came to be lodged by the respondent
under Section 200 of Cr.P.C. alleging commission of offence punishable under Section 138 of N.I. Act contending that accused had availed a hand loan with a promise to repay the same with interest at 24% per annum or 2% per month agreeing to repay the same at the earliest. On repeated demands towards repayment of
NC: 2024:KHC:20731 CRL.RP No. 74 of 2021
the principal amount of Rs.2,00,000/- coupled with interest at 24%, accused passed on a cheque bearing No.695231 dated 03.11.2010 in a sum of Rs.3,30,000/drawn on IndusInd Bank, Shivamogga Branch, which on presentation came to be dishonoured with an endorsement ‘Account closed’. Thereafter legal notice came to be issued and the same is served on the accused on 02.12.2010. There was no compliance to the demand of notice nor there was any reply. Accordingly, complainant filed a complaint for taking action against the accused.
aforesaid offence and secured the presence of the accused. Plea was recorded, accused pleaded not guilty and accordingly trial was held.
he got himself examined as PW.1 and placed on record six documentary evidence which were exhibited and marked as Exs.P-1 to P-6 comprising of original cheque, bank
NC: 2024:KHC:20731 CRL.RP No. 74 of 2021
endorsement, legal notice, postal acknowledgment and letter issued by the post office.
Section 313 Cr.P.C. was also recorded and accused has denied all the indiscriminatory materials that were put to him.
8. Thereafter learned trial Judge heard the matter
in detail and passed an order of conviction imposing fine of Rs.3,30,000/with default sentence of simple imprisonment for a period of one year and the entire amount of Rs.3,30,000/- was ordered to be paid as compensation to the complainant.
and sentence, the accused preferred appeal before the
District Court, Shivamogga in Crl.A.No.39/2019. The learned Judge of the First Appellate Court after securing the records heard the parties in detail and by judgment dated 24.11.2020 dismissed the appeal of the accused and confirmed the order of conviction and sentence. Thereafter accused is before this Court in this revision.
NC: 2024:KHC:20731 CRL.RP No. 74 of 2021
accused was in due in a sum of Rs.3,30,000/- and
therefore, sought for allowing the revision petition.
‘funds insufficient’. Admittedly, the cheque is dishonoured with endorsement ‘Account closed’. If at all accused has closed the account much earlier to its presentation, it was incumbent on the accused to make a declaration before the bank authorities that he has retained the cheque leaf that was handed over to the complainant and should have instructed the Banker not to honour the same. No such request has been made by the accused.
NC: 2024:KHC:20731 CRL.RP No. 74 of 2021
NC: 2024:KHC:20731 CRL.RP No. 74 of 2021
infirmity whatsoever so as to admit the revision petition for further consideration. Accordingly, the following:
ORDER
Admission declined. Revision petition dismissed .
SD/JUDGE
CA List No.: 1 Sl No.: 20
2 issues framed by the court
Whether dishonour with 'Account closed' endorsement attracts liability under Section 138 NI Act.
Whether the accused rebutted the presumption under Section 139 NI Act.
5 provisions across 2 enactments
Abbas S/o Abdul Gaffar
Harish .H.N S/o H.N. Murthy
V Srishananda
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
