U SASIDHARAN Vs. M N THANKACHAN

JUDGEMENT

(1.) As the above two appeals arose out of a common judgment dated 24.11.2006 in S.T.Nos.107 and 108 of 2004 of the court of the Judicial First Class Magistrate-III, Kochi and particularly, when the parties to the above appeals are one and the same, the above appeals are heard together and being disposed of by this common judgment.

(2.) The appellant in the above appeals is the complainant in two separate prosecutions launched against the first respondent/accused for the offence punishable under Section 138 of the Negotiable Instruments Act,1881 (for short 'the N.I.Act'). The appellant is aggrieved by the above common judgment since the accused is acquitted under Section 255(1) of the Cr.P.C. in both the above cases by the above common judgment.

(3.) The above cases were tried together and S.T.No.107 of 2004 was treated as the leading case. The allegation in S.T.No.107 of 2004 is that the complainant is a film distributor by name M/s. Ullattil Cine Media represented by its Proprietor Mr.U.Sasidharan whereas the accused is a film producer company by name M/s.Egna Films represented by its Managing Director and the sole proprietor Mr. M.N.Thankachan. As per the case of the complainant, the accused entered into an agreement with the complainant firm on 18.12.2003, for the selling the rights of distribution, exhibition and exploitation of the motion picture namely 'Symphony'. The areas of distribution are in Malabar District and Kochi, consisting of seven districts of the State of Kerala and the period of distribution is five years from the date of release of the film. As per the agreement, Rs. 20 lakhs is fixed as the consideration for the distribution right and as per the terms, a sum of Rs. 2 lakhs is paid on the date of execution of the agreement itself and another amount of Rs. 18 lakhs is agreed to be paid on the delivery of the first copy and clearing the censorship and lab settlement and thus, according to the complainant, a total sum of Rs. 20 lakhs is paid to the accused, but the film produced by the accused and distributed by the complainant was a flop and therefore, the complainant could not collect the advance amount of Rs. 20 lakhs and therefore, in terms of the various clauses contained in the agreement, the accused issued a cheque dated 20.5.2004 for an amount of Rs. 20 lakhs in favour of the complainant, which when presented for encashment, was dishonoured for the reason that no sufficient money in the account maintained by the accused and therefore, the accused has committed the offence punishable under Section 138 of the N.I.Act.