2021 (5) TMI 839

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....st Class Magistrate-III, Palakkad against the 1st respondent alleging offence punishable under Section 138 of the Negotiable Instruments Act. The appellant is a leasing and financing company giving out loans, among other things, for purchase of vehicles. In the complaint preferred before the trial court, it is alleged that the 1 st respondent had availed a loan for Rs. 2,49,000/- for purchasing a vehicle, agreeing to repay the amount in 60 instalments, at the rate of Rs. 5,976/- per month. In order to ensure monthly repayment, he had executed and issued post-dated cheques, authorising the appellant to present the same one by one, every month. But he defaulted repayment and the cheques were dishonoured due to insufficiency of funds. After fu....

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.... cheque by the accused stand proved by the evidence adduced by the complainant'. However, it is found that, in the absence of reliable evidence as to the effect that the cheque was dishonoured due to insufficiency of funds in the account of the accused, the complainant failed to prove an offence under Section 138 of the Negotiable Instruments Act. On that premise the conviction and sentence were interfered with and the appeal was allowed. Against that finding, the appellant moved a Criminal Leave Petition to this Court and after obtaining leave the appeal was taken on file. Though notice was served on the accused, he has not appeared nor a lawyer has been engaged. 4. I heard the learned counsel for the appellant and also the learned Pu....

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....n fact, the cheque return memo issued by the Bank of India from where the cheque was issued, was not produced before the court. According to the learned counsel for the appellant, that was a mistake on his part. Of course, from Ext.P3 lawyer notice, it is quite evident that the reason for the return of the cheque has clearly been intimated to the alleged drawer, the 1st respondent. Still, when such an aspect was highlighted before the appellate court, the court took serious note of it and interfered with the conviction and the sentence imposed on the 1st respondent. 7. Having regard to the contentions urged before this Court by the learned counsel for the appellant and also taking into account the quantum of amount involved, it seems that ....