R.Sadasivam Vs M.Pongaliappan — Cheque Dishonour | Madras HC (2025)

R.Sadasivam Vs M.Pongaliappan — Cheque Dishonour | Madras HC (2025)

What the court decided

AI extract

Outcome

Criminal Revision Case allowed in part: the sentence of imprisonment alone is set aside; the conviction stands with the fine of Rs.1,000/- (also paid) and the cheque amount of Rs.17,87,625/- recorded as already paid towards full satisfaction.

Issue for consideration

Whether the conviction order passed in C.A.No.55 of 2019 dated 05.10.2021 (confirming the conviction in C.C.No.304 of 2010 dated 26.04.2019 under Section 138 NI Act) should be set aside. +1 more

Court's answer

Only the sentence of imprisonment imposed vide the judgment dated 26.04.2019 in C.C.No.304 of 2010 and confirmed in the judgment dated 05.10.2021 in Crl.A.No.55 of 2019 stands set aside; the conviction and the monetary components (fine of Rs.1,000/-, also paid, and cheque amount of Rs.17,87,625/-, recorded as paid) stand.

Ratio / Principle

Since the respondent/complainant accepted in the enquiry that he received the amount from the petitioner/accused towards the full and final satisfaction of Crl.R.C.No.612 of 2022, the enquiry established that the entire cheque amount was received, and the complainant neither turns up before this Court nor instructs his counsel to agree to a compromise, interest of justice is best served by modifying the punishment to one relating to the fine of the cheque amount alone, recording that the cheque amount of Rs.17,87,625/- is already paid.

Detailed headnote1 paragraphs

Negotiable Instruments Act, 1881 - S.138 - Conviction - Sentence of imprisonment set aside on verified settlement. Pending this Criminal Revision (Sections 397 & 401, Cr.P.C.) against the conviction under S.138 NI Act (two years Simple Imprisonment, fine of Rs.1,000/- and compensation of the cheque amount Rs.17,87,625/-) imposed in C.C.No.304 of 2010 (Judicial Magistrate, Avinashi, 26.04.2019) and confirmed in C.A.No.55 of 2019 (II Additional District & Sessions Judge, Tiruppur, 05.10.2021), the parties negotiated out of court and the complainant executed a receipt acknowledging receipt of the amount towards full satisfaction. As the receipt carried no amount and counsel lacked instructions, the Court directed (order dated 28.04.2025) the Deputy Superintendent of Police, Avinashi to enquire; the enquiry confirmed receipt of the entire cheque amount of Rs.17,87,625/- and execution of the receipt, though the complainant claimed a further Rs.5,00,000/- per a panchayatdar negotiation and thereafter neither appeared nor instructed counsel. Held: interest of justice best served by modifying the punishment to the fine of the cheque amount alone; payment of Rs.17,87,625/- and of the Rs.1,000/- fine recorded; only the sentence of imprisonment stands set aside. Criminal Revision Case allowed in part. (Single judge: D. Bharatha Chakravarthy; decision 06.06.2025; no neutral citation.)

Crl.R.C.No.612 of 2022

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 06.06.2025

CORAM :

THE HON'BLE MR.JUSTICE D.BHARATHA CHAKRAVARTHY

Crl.R.C.No.612 of 2022

R.Sadasivam .. Petitioner

Versus

M.Pongaliappan .. Respondent

Prayer: Criminal Revision Case is filed under Section 397 and 401 of Cr.P.C., to call for the records and pleased to set aside the conviction order passed in C.A.No.55 of 2019, dated 05.10.2021, on the file of the learned II Additional District and Sessions Judge at Tiruppur, and confirmed the conviction order passed in C.C.No.304 of 2010, dated 26.04.2019, on the file of the Judicial Magistrate Court, Avinashi.

For Petitioner : Mr.G.Shanmugam

For Respondent : M/s.Sureka, for Mr.V.Vijayakumar

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ORDER

This Criminal Revision Case is directed against the judgment of the learned II Additional District and Sessions Judge, Tiruppur, dated 05.10.2021 made in C.A.No.55 of 2019, thereby, confirming the conviction and sentence imposed on the petitioner/accused vide judgment in C.C.No.304 of 2010. By the judgment in C.C.No.304 of 2010, the learned Judicial Magistrate, Avinashi had convicted the petitioner for the offence under Section 138 of the Negotiable Instruments Act, 1881 and imposed a sentence of two years Simple Imprisonment and a fine of Rs.1,000/- and also directed the payment of the cheque amount being Rs.17,87,625/- as compensation.

Pending this Revision Case, it seems that the petitioner/accused

and the respondent/complainant negotiated out of Court and the respondent/complainant has executed a receipt stating that he received amount from the petitioner/accused towards full satisfaction of the Criminal Appeal in Crl.R.C.No.612 of 2022 before this Court. The said receipt was produced and the matter was sought to be closed. At that time, since no amount was mentioned in the receipt and since the learned Counsel for the

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Crl.R.C.No.612 of 2022

respondent/complainant also did not have direct instructions from the complainant, this Court, by the order, dated 28.04.2025, directed the Deputy Superintendent of Police, Avinashi to conduct an enquiry and submit a report.

Pursuant thereto, the Deputy Superintendent of Police, Avinashi had conducted an enquiry. In his enquiry, the complainant had stated that it is true that there were negotiation talks and the entire cheque amount of Rs.17,87,625/- was received and that he executed the said receipt. However, as per the negotiation held between them in the presence of panchayatdars, another sum of Rs.5,00,000/- has to be paid by the petitioner/accused to him. Today also, the respondent/complainant has not instructed his learned Counsel before this Court in that regard. The learned Counsel for the petitioner/accused submits that she has no direct contact with the complainant.

In view thereof, since, in the enquiry, the respondent/complainant

accepted that he has received the amount from the petitioner/accused towards the full and final satisfaction of Crl.R.C.No.612 of 2022 and it turns

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Crl.R.C.No.612 of 2022

out in the enquiry that the entire cheque amount is received by the respondent/complainant and in the circumstances, where the respondent/complainant is not turning up before this Court or instructing the learned Counsel to agree for a compromise, I am of the view that interest of justice would be best served in view of the above facts to modify the punishment as to one relating to the fine of the cheque amount alone. The fact that already cheque amount, being Rs.17,87,625/- is paid is recorded.

The other sum of Rs.1,000/-, imposed as fine, is also paid. Therefore, the sentence of imprisonment, imposed vide the judgment, dated 26.04.2019 in C.C.No.304 of 2010 and confirmed in the judgment, dated 05.10.2021 in Crl.A.No.55 of 2019 alone stands set aside.

This Criminal Revision Case is allowed in part accordingly.

06.06.2025

Neutral Citation : no grs

To

The II Additional District and Sessions Judge, Tiruppur.

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Crl.R.C.No.612 of 2022

The Judicial Magistrate, Avinashi.

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D.BHARATHA CHAKRAVARTHY, J.,

grs

Crl.R.C.No.612 of 2022

06.06.2025

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