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The Thiruchengode Agricultural Producers v. S.Krishnamoorthi

Madras HC10 Dec 2025CRL A/173/2021

Case brief

AI extract

What is this about?

Dishonour of cheque; Section 138 Negotiable Instruments Act; Section 378 Cr.P.C.; criminal appeal by complainant co-operative marketing society; agricultural produce auction bidder liability; trial Court dismissal/acquittal; one-time settlement dated 22.01.2024; principal and 9% interest paid; demand draft payment; appeal dismissed; acquittal confirmed; Thiruchengode; Namakkal District; Tiruppur District; Judicial Magistrate Fast Track Court; High Court of Judicature at Madras; Justice M. Nirmal Kumar; decision date 10-12-2025.

What did the court decide?

In view of the settlement arrived at between the parties, nothing survives for further adjudication in the appeal. ¶¶36

The Thiruchengode Agricultural Producers Vs S.Krishnamoorthi — Cheque Dishonour | Madras HC (2025)

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CRL A No.173 of 2021

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED: 10-12-2025

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CORAM

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THE HONOURABLE MR JUSTICE M. NIRMAL KUMAR

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CRL A No. 173 of 2021

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The Thiruchengode Agricultural Producers Co-operative Marketing Society Ltd, S.351, Rep. by its Authorized and Approved Person, General Manager (incharge), Rajagopalan, Velur Road, Thiruchengode, Namakkal District.

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Appellant/Complainant

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S.Krishnamoorthi Proprietor Krishna Agency, 4/15, Dr.Thottam, Nathakkadaiyoor Post, Kangeyam Taluk, Tiruppur District.

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Respondent/Accused

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Prayer : Criminal Appeal filed under Section 378 of Cr.P.C., praying to set aside the order passed by the learned Judicial Magistrate, Fast Track Court, Thiruchengode in S.T.C.No.218 of 2012 dated 22.01.2021 by allowing this appeal.

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https://www.mhc.tn.gov.in/judis

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CRL A No.173 of 2021

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For Appellant : Mr.M.Thirumoorthy For Mr.L.P.Shanmugasundaram For Respondent : Mr.K.Premkumar

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JUDGMENT

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The appellant-Co-operative Society initiated private complaint under Section 138 of the Negotiable Instruments Act in S.T.C.No.218 of 2012 against the respondent for dishonouring the cheque, which was issued in discharge of liability to the tune of Rs.4,04,710/-. The trial Court, by the judgment dated 22.01.2021, dismissed the complaint, against which the present appeal is filed.

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2.The contention of the learned counsel for appellant is that the appellant/society, for the benefit of the agriculturists for facilitating the sale of produce, conducted auction. The respondent participated in the auction and he became the successful bidder. He collected the agriculture produce, undertook to pay the amount, which was covered under invoices but failed to pay. Thereafter the respondent issued cheque in discharge of the liability, which got dishonoured. Hence, following the statutory procedure, complaint filed.

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3.In support of the case, the complainant examined one Madhaiyan, General Manager of the Society as PW1 and marked Exs.P1 to P14. On the side

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https://www.mhc.tn.gov.in/judis

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of the defence, DW1 to DW4 examined. DW4 is the respondent/accused and he marked 25 documents as Exs.D1 to D25. The trial Court on a wrong appreciation of the facts dismissed the complaint, against which, the present appeal is filed.

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4.The learned counsel for the respondent/accused submitted that he is still a member of the Society and after some negotiation, the issue between the respondent and appellant-Society got settled and now he paid back the entire cheque amount. He further submitted that there was a one time settlement on 22.01.2024, wherein it was agreed that Principal amount of Rs.3,24,763.24 along with 9% interest of Rs.3,36,840.55, in total, Rs.6,61,603.79, out of which, 25% is Rs.1,65,401/- and the same was paid on 22.01.2024. Thereafter the balance 75%, i.e., Rs.4,96,203/- paid by way of demand draft on 22.07.2024 and the issue got resolved.

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5.Both the learned counsel for the appellant and respondent admitted about the settlement and the learned counsel for appellant produced a letter dated 01.12.2025 issued by the Managing Director of the Society confirming the same, which is extracted hereunder:

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6.In view of the settlement arrived at between the parties, nothing survives for further adjudication in the appeal. Hence, the Criminal Appeal stands dismissed and acquittal of the respondent by the trial Court is hereby confirmed.

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10-12-2025

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Index:Yes/No Speaking/Non-speaking order Internet:Yes Neutral Citation:Yes/No rsi

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