TaxTMI 
TaxTMI 
2015 (12) TMI 1335
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....icant- complainant was a Co-operative Society and the present complaint has been filed on behalf of complaint by Birinder Singh, who being District Manager and principal officer was duly competent and authorized to file the complaint. Accused-respondent No.1-firm is engaged in the business of milling of paddy/rice and respondents No.2 & 3-accused were partners of respondent No.1. 3. The respondents-accused were issued paddy/rice by the applicant through its District Manager for milling of paddy/rice for the years 1999- 2000. Respondent No.1-accused did not mil the paddy/rice as per agreed terms. The rice was stored in the premises of respondent No.1-accused who failed to supply the rice due against respondents-accused. 4. On 25.02.2001, respondent No.2-accused issued cheque No.702252 for Rs. 12,00,000/- drawn at Punjab and Sind Bank, Nabha Branch on account of security against the shortage of rice from paddy from crop for the years 1999-2000, stored for custom milling of paddy supplied by the applicant and stored in the premises of respondent No.1-accused. Applicant deposited abovesaid cheque on 28.02.2001 with its banker State Bank of Patiala, Branch Nabha for encashment. The sa....
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..... However, since the learned trial Court failed to appreciate the true factual as well as legal aspect of the matter, the impugned judgment of acquittal is not sustainable in law. He further submits that because of inadvertence on the part of the concerned officials of the applicant-Department, incorrect averments were taken in the complaint to the effect that cheque in question was issued by the accused on account of security against storage of rice, but the said inadvertent averment was explained and clarified during the course of leading evidence. Since the learned trial Court failed to appreciate this material aspect of the matter, impugned judgment of acquittal was based on a misconceived approach and liable to be set aside. He prays for allowing all these eight applications, by setting aside the impugned judgments of acquittal. 9. Per contra, learned counsel for the respondents-accused submit that it was not an inadvertent mistake but the averments were taken in the complaint correctly to the effect that the accused issued the cheque in question only on account of security against storage of rice and not to discharge their financial liability. They further submit that learne....
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....question was issued?, whether the cheque issued on account of security can attract the provisions of Negotiable Instruments Act? CW6 Waryam Singh has deposed in cross-examination that he has brought physical verification reports of M/s Arti Rice Mills which was conducted on 15.08.2000 to 08.05.2001 and 31.03.2001. He had further deposed that these physical verifications were issued by concerned authorities after physically verifying of stock of paddy and rice. He has further deposed that on 31.03.2001 after physical verification some paddy was found short but rice equivalent to quantity of paddy was present at the spot. He has further deposed that accused has milled paddy without prior permission of the complainant but after calculating of quantity of rice and paddy, total quantity was found intact. Further, accused have examined Paramjit Kaur Assistant Accountant of complainant department as DW3 who has deposed to the effect that physical verification of stocks of Arti Rice Mills was conducted on 15.08.2000, 31.03.2000 and 31.03.2001 and it was found that the stocks of paddy were short but equivalent quantity of rice derived out of paddy was present. He has further deposed that p....
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....ount of security as is in the present complaint, same does not attract provisions of section 138 of the Negotiable Instrument Act, as for the provisions of section 138 of the Negotiable Instrument Act cheque must have been issued for discharge of existing liability or debt. In the present case, first of all complainant itself has mentioned in the pleadings that cheque in question was issued on account of security and further in view of the fact that complainant has failed to prove any shortage in the stock at the time of physical verification, so it cannot be said that accused were under existing liability or debt at the time of issuance of cheque in question." 13. When a pointed question was put to learned counsel for the applicant, as to how the averments taken in the complaint to the effect that cheque in question was issued on account of security against shortage of rice and not in discharge of financial liability, was factually incorrect and whether any action was taken against the erring officers/officials of the applicant- Department, learned counsel for the applicant had no answer and rightly so, it being a matter of record. Under these circumstances, it can be safely conc....
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..... If two reasonable or possible views can be reached - one that leads to acquittal, the other to conviction - the High Courts/appellate courts must rule in favour of the accused. 40. This Court in a recently delivered judgment State of Rajasthan v. Naresh @ Ram Naresh 2009 (11) SCALE 699 again examined judgments of this Court and laid down that "An order of acquittal should not be lightly interfered with even if the court believes that there is some evidence pointing out the finger towards the accused. This Court has dealt with the scope of interference with an order of acquittal in a number of cases." 41. Careful scrutiny of all these judgments lead to the definite conclusion that the appellate court should be very slow in setting aside a judgment of acquittal particularly in a case where two views are possible. The trial court judgment can not be set aside because the appellate court's view is more probable. The appellate court would not be justified in setting aside the trial court judgment unless it arrives at a clear finding on marshalling the entire evidence on record that the judgment of the trial court is either perverse or wholly unsustainable in law." 16. The law l....