M.S. SRIKARA RAO Vs. H.C. PRAKASH

JUDGEMENT

(1.) The material facts not in dispute are that, the respondent complainant (for convenience hereinafter referred to as 'the complainant') had filed C.C.No. 286/2004, in the Court of JMFC, Koppa against the petitioner-accused (for convenience hereinafter referred to as 'the accused'), under S.138 of Negotiable Instruments Act, 1881 (for short 'the Act'), in relation to bounced cheque for Rs. 12,00,000/-, which had been issued by the accused. By a Judgment dated 15.2.2007, the accused was convicted and sentenced to pay fine of Rs. 24,00,000/- to the complainant. Assailing the said Judgment, the accused filed Crl.A.No.20/2007 in the Sessions Court at Chikmagalur. During the pendency of the said appeal, an endeavour having been made to resolve the dispute between the parties, an agreement having been reached, the parties entered into a compromise. The appellantaccused agreed to pay a sum of Rs. 12,00,000/-, as against the fine amount of Rs. 24,00,000/-. Out of the agreed amount, the accused paid by cash Rs. 4,00,000/-, to the complainant and assured to pay the balance amount of Rs. 8,00,000/-, in installments. Towards payment of the said balance amount, the accused issued four post dated cheques bearing Nos.0706011, 0706012, 0706013 and 0706014, drawn on Chikmagalur-Kodagu Grameena Bank, Agalagandi branch. The complainant presented for encashment, the cheque bearing No.0706012, dated 12.3.2008, for Rs. 2,50,000/-, which bears signature of the accused. The bank returned the cheque on 12.3.2008, with an endorsement 'payment stopped by the drawer'.

(2.) The learned Trial Judge, noticing the admissions of the accused/DW-1, that he was convicted in C.C. No.286/2004 and was ordered to pay fine/compensation of Rs. 24,00,000/- to the complainant; the appeal filed thereagainst; the issuance of cheque Ex.P1 to the complainant and also his liability to pay the amount in terms of the compromise entered into the criminal appeal, held that the cheque/Ex.P1 was issued to the complainant in order to discharge the legal liability. The contention that the demand notice Ex.P3/P6 was not given/served was repelled. The cheque amount having not been paid, the accused was found guilty. Accused was convicted for the offence under S.138 of the Act and was sentenced to undergo imprisonment for a period of 6 months and pay fine of Rs. 5,000/- and in default of payment of fine amount, to undergo simple imprisonment for a period of one month.

(3.) Assailing the said Judgment, the accused filed Crl.A.No.109/2009, in the Sessions Court at Chikmagalur.