Dismissed

Muthoot Vehicle and Asset Finance v. Binu M.R.

Kerala HC13 Feb 2013Crl.L.P./36/2013

Case brief

AI extract

What is this about?

The Kerala High Court dismissed a criminal leave petition seeking special leave to appeal against an acquittal in a cheque dishonour case. Upholding the acquittal, the Court held that the cheque was issued as security and not for discharging a legally enforceable debt, citing the Sudhir Kumar Bhalla precedent. Consequently, the offence under Section 138 did not attract.

What did the court decide?

The criminal leave petition was dismissed, maintaining the acquittal of the accused.

Muthoot Vehicle and Asset Finance Vs Binu M.R. — Cheque Dishonour | Kerala HC (2013)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT:

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THE HONOURABLE MR.JUSTICE V.K.MOHANAN

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WEDNESDAY, THE 13TH DAY OF FEBRUARY 2013/24TH MAGHA 1934

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Crl.L.P..No. 36 of 2013

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AGAINST THE ORDER/JUDGMENT IN ST.CASE No.3724/2009 of J.M.F.C.-II, KOTTAYAM DATED 03-07-2010

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PETITIONER:COMPLAINANT:

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MUTHOOT LEASING AND FINANCE LIMITED,

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NOW RENAMED AS MUTHOOT VEHICLE AND ASSETS FINANCE LTD. KURIAN TOWERS, OPPOSITE SARITHA THEATRE, BANERJI ROAD, ERNAKULAM, REPRESENTED BY ITS POWER OF ATTORNEY HOLDER BABY SUJATHA, W/O.JAISURAJ, SAISURAJ, CUSTOMS COLONY, HOUSE No.25, POONITHURA.P.O., THRIPUNITHURA.

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BY ADV. SRI.S.NIDHEESH

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RESPONDENTS:ACCUSED & STATE :

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BINU.M.R. MOOLASSERIYIL HOUSE, P.O.KANJIRAM, KOTTAYAM, PIN-686031.

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THE STATE OF KERALA, REPRESENTED BY THE PUBLIC PROSECUTOR, HIGH COURT OF KERALA, ERNAKULAM-682031.

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R2 BY PUBLIC PROSECUTOR -SMT.V.H.JASMINE

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THIS CRIMINAL LEAVE PETITION HAVING BEEN FINALLY HEARD ON 13-02-2013, THE COURT ON THE SAME DAY PASSED THE FOLLOWING:

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V.K.MOHANAN, J.

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Crl.L.P.No.36 of 2013

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Dated this the 13^th day of February, 2013

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ORDER

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The complainant in a prosecution for the offence under Section 138 of the Negotiable Instruments Act, 1881 (for short 'the N.I.Act') is the petitioner herein, who seeks special leave under Section 378(4) of the Criminal Procedure Code (for short 'the Cr.P.C.) to file an appeal against the order of the trial court by which the learned Magistrate in his complaint, acquitted the accused under Section 255(1) of the Cr.P.C.

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The case of the complainant is that as per hypothecation agreement, connected with the purchase of vehicle and towards the discharge of the liability due to the complainant, the accused executed and issued Ext.P5 cheque which when presented for encashment returned for the reason 'account closed' and the accused has not repaid the dishonoured cheque amount in spite of a statutory notice served on him and therefore, the accused

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Crl.L.P.No.36/2013

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has committed the offence punishable under Section 138 of the N.I. Act. During the trial of the case PWs.1 and 2 were examined from the side of the complainant and produced Exts.P1 to P10. Though no witness is examined from the side of the defence, Exts.D1 and D2 are produced and marked. The trial court after considering the entire evidence and materials found that Ext.P5 cheque was not issued in discharge of a legally enforceable debt to the complainant as alleged and therefore the accused has not committed the offence punishable under Section 138 of the N.I. Act. Consequently, the accused is acquitted under Section 255 (1) of Cr.P.C. It is the above finding and order of acquittal sought to be challenged by filing an appeal for which the leave of this Court is sought for.

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I have heard Adv.Sri.Nidheesh.S., the learned counsel for the petitioner.

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The learned counsel for the petitioner submitted that, the accused has no case that he had

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Crl.L.P.No.36/2013

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cleared the liability. It is the further submission of the learned counsel that, even if the case of the accused, that Ext.P5 cheque was given as a security, is admitted, in the light of the decision reported in Mohanachandran Nair Vs. P.C.Cheriyan and another 2012(4)KHC 96, offence under Section 138 of the N.I. Act is attracted against the accused and therefore, the findings of the court below is liable to be interfered in case an appeal is entertained and therefore, the petitioner is entitled to get leave as sought for.

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I have carefully considered the submission made by the learned counsel for the petitioner and I have perused the judgment sought to be impugned.

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At the outset it is to be noted that, the transaction between the complainant and the accused is not under dispute. The case of the defence is that entire amount repaid by way of installment and without the concurrence and consent of the accused, the cheque given as security is misused by the complainant against

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Crl.L.P.No.36/2013

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the accused for unlawful gain. It is in the above factual backdrop, the trial court considered the entire case. The trial court after considering the entire evidence and material has found that Ext.P4 alone, as it is not convincing document even though PW.2 admitted that he has prepared the same, cannot be relied and no liability can be fixed upon the accused based upon Ext.P4. The learned Magistrate has specifically found that when PW.1 was cross-examined, the accused disputed Ext.P4 statement of account but no satisfactory explanation is assigned for admitting Ext.P4, from the side of the complainant, as it is only a computer print. In this juncture it is relevant to note that, the specific case of the complainant is that, when the amount due, the same was informed to the accused, and the accused had volunteered to execute Ext.P5 cheque, but no document is produced to that effect. The learned Magistrate has specifically found that to intimate the fact of dues to the accused, no document produced, even after it is admitted

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Crl.L.P.No.36/2013

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by PW.1 that there are materials available in the complainant's institution. It is also observed and found by the learned Magistrate that the vehicle was not seized by the complainant since the accused made payments even after dishonouring the cheque as evident by Exts.D1 and D2. Therefore, to prove the liability of the accused to pay an amount, equal to an amount covered by Ext.P5, the complainant has adduced no evidence. The learned Magistrate has already found that Ext.P4 cannot be relied safely, since even PW.2, who claimed to have prepared Ext.P4, failed to adduce any convincing evidence. So, to prove the liability of the accused, in the above said circumstances, absolutely there is no evidence.

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To circumvent the above situation, the counsel for the petitioner relied on the decision cited supra and submitted that even if Ext.P5 cheque issued as a security the offence under Section 138 of the N.I. Act is attracted. I am unable to sustain the above contention. In the decision reported in Sudhir Kumar Bhalla Vs. Jagdish

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Crl.L.P.No.36/2013

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Chand & etc. AIR 2008 SC 2407, the Hon'ble Apex Court has held that the criminal liability under the provisions Section 138 of the N.I. Act are attracted only on account of the dishonour of the cheques issued in discharge of the liability or debt but not on account of issuance of security cheques. Therefore, the position is well settled and in order to attract the said liability under Section 138 of the N.I. Act it is the bounden duty of the complainant or the holder of the cheque to prove the fact that the cheque in question was issued after its due execution towards the discharge of the liability and cheque given as security cannot be pressed into service to fix penal liability under Section 138 of the N.I. Act. Thus, on examination of facts and circumstances involved in the case, in the light of the above decision, according to me, the trial court is fully justified in its finding and acquitting the accused. Therefore, in the absence of any contention or on the failure of the petitioner to show that the judgment sought to be impugned is tainted due to its perversity or

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Crl.L.P.No.36/2013

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illegality, this Court will not justify in interfering with the order of acquittal and the finding of the court below. Therefore, even if an appeal is entertained there is little scope to interfere with such finding and order of acquittal recorded by the trial court.

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Thus, according to me, the above leave petition is devoid of any merit and accordingly the same is dismissed.

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V.K.MOHANAN, JUDGE

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skj

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True copy

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P.A. to Judge

Muthoot Vehicle and Asset Finance v. Binu M.R.

Case brief

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Muthoot Vehicle and Asset Finance v. Binu M.R.

Case brief

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