2021 (5) TMI 974 - HC - Indian Laws

High Court Upholds Convictions under Section 138 of Negotiable Instruments Act

S. Kantharaju Versus Laxmi Financiers

S. Kantharaju Versus Laxmi Financiers - TMI Issues:1. Conviction under Section 138 of the Negotiable Instruments Act, 1881.2. Validity of legal notice and its timing.Issue 1: Conviction under Section 138 of the Negotiable Instruments Act, 1881:The accused availed a loan but failed to repay, leading to the issuance of a cheque that was dishonored twice due to insufficient funds. The complainant sent a legal notice demanding payment, which the accused did not fulfill. The Trial Court and Sessions Judge's Court both convicted the accused under Section 138 of the N.I. Act. The evidence of PW-1, the complainant, remained unchallenged, establishing the accused's guilt. The judgments were deemed appropriate, considering the evidence and the gravity of the offense.Issue 2: Validity of legal notice and its timing:The accused argued that the legal notice was sent beyond the statutory one-month period and was not marked as an exhibit in the Trial Court. However, the evidence showed that the notice was sent within the statutory period after the second dishonor of the cheque. Even though the legal notice was not marked as an exhibit, the accused's reply acknowledged its receipt, validating its sending. The non-marking of the notice did not affect the case's strength. The courts found the notice valid and timely, supporting the complainant's case.In conclusion, the High Court dismissed the Criminal Revision Petition, upholding the judgments of the Trial Court and Sessions Judge's Court. The accused's conviction under Section 138 of the N.I. Act was deemed appropriate based on the unchallenged evidence and the legal validity of the notice. The court found no grounds for interference, affirming the lower courts' decisions and ordering the transmission of the order to both courts for further action.