TaxTMI 
TaxTMI 
2023 (11) TMI 669
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....138 of the Negotiable Instruments Act, though modified and reduced the sentence to certain extent. 2. CC No. 117 of 2002 was based on a complaint filed by M/s. Shrachi Securities Ltd.-the 1st respondent herein, against the revision petitioner herein alleging an offence punishable under Section 138 of the Negotiable Instruments Act. The complainant/1st respondent was a company registered under the Companies Act engaged in various businesses including hire purchase. The revision petitioner availed hire purchase loan of Rs. 1,00,000/- from the complainant company for purchasing KL-01/C-8209 mini bus. The amount was agreed to be repaid in 24 monthly installments. The revision petitioner defaulted the repayments, and so, the complainant issue....
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....cts and evidence, the trial court found the revision petitioner guilty under Section 138 of the Negotiable Instruments Act and he was convicted and sentenced to undergo simple imprisonment for three months and to pay Rs. 1,24,500/- as compensation under Section 357(3) of Cr.P.C., and in default to undergo simple imprisonment for one month. He was also directed to pay Rs. 1,000/- as cost under Section 359 of the Cr.P.C., and in default to undergo simple imprisonment for ten days. 5. Aggrieved by the conviction and sentence, the revision petitioner preferred Crl. Appeal No. 549 of 2003. The appellate court found that the vehicle covered by the hire purchase agreement was seized by the complainant/1st respondent and it was sold. It was furt....
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....ignature in Ext.P3 cheque. But according to him, it was given as a security when he availed the hire purchase loan in the year 1997. In order to substantiate that fact, he would point out that the cheque was not written in hand, and it was typewritten. If that cheque was given by the revision petitioner, towards discharge of a debt due from him, in normal course, he may fill up the cheque in his own hand writing, specifying the date and amount. PW1-the power of attorney holder of the 1st respondent deposed before the trial court that, on receipt of notice sent from the company, the revision petitioner reached their office and he himself typed the cheque at the office. That statement is difficult to be believed as there is no chance for a co....
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.... after seizing the vehicle and that notice is dated 07.08.1998. Ext.D1 notice says that the vehicle was seized on 30.06.1998 and if he is not interested in releasing it, he has to forward its RC Book. When he reached their office, in the year 1998, in pursuance to Ext.D1 notice, the respondent asked for Rs. 5,000/- to close that matter, but it was not paid by him. He never went to the office of the 1st respondent in the year 2002, and never issued Ext.P3 cheque dated 06.02.2002, after typewriting the contents. There is nothing to show issuance of any notice in the year 2002, or to show that the revision petitioner went to the office of the 1st respondent in the year 2002. The fact that seizure and sale of the vehicle covered by the hire pur....
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.... fact that by effecting seizure of the vehicle, the owner had exercised the option availed to him under the agreement. the post-dated cheques in the hands of the owner will become instruments, for which consideration had failed. Paragraphs 20 and 21 of the decision Sudha Beevi's case cited (Supra) read thus: "20. A perusal of various clauses in Annexure A8 agreement, in particular clauses 8 and 9, would clearly show that the owner is not entitled to present any of the post dated cheques for encashment after termination of the agreement, especially after the vehicle was re-possessed by him. Even though the post dated cheques issued by the hirer were supported by consideration at the time when they were issued, they had ceased to....
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....ludes the alleged balance amount payable under the agreement after adjusting the sale proceeds of the vehicle and all other expenses in connection with the transaction between the parties. Thus it is clear that the complainant/owner has already initiated steps to recover the liabilities from the hirer as provided under clause 9 of the agreement. In that view of the matter, the criminal proceedings initiated against the petitioner cannot be sustained." 12. In the case cited supra the seizure and sale of the vehicle was after issuance of the cheque. But in the case on hand, the facts are different. Here the case of the 1st respondent is that the cheque was issued after seizure and sale of the vehicle, and after adjusting the sale price tow....