MANI C. KAPPAN Vs. STATE OF KERALA

JUDGEMENT

(1.) Petitioner is a member of the Kerala Legislative Assembly (MLA) from Pala constituency, having been elected in September 2019. He is facing prosecution as C.C No. 118/2021 on the files of the Judicial First Class Magistrate Court-VIII, Ernakulam for the offences punishable under Ss. 406, 417 and 420 of the Indian Penal Code, 1860 (for short 'IPC'). He seeks to quash all further proceedings in the above said criminal case.

(2.) The prosecution is based on a complaint filed by the second respondent alleging offences punishable under Ss. 406, 417, 418, 420 and 423 of IPC. The learned Magistrate however took cognizance only for the offences under Sec. 406, 417 and 420 of IPC.

(3.) According to the complainant, the accused had cheated him by dishonestly and, without any intention to repay, borrowed an amount of Rs.2.00 Crores in the year 2010 and failed to repay the amount except for Rs.25,00,000.00. When the defacto complainant insisted on re-payment, he induced the complainant to enter into an agreement on 19/11/2013 promising to repay the outstanding amount of Rs.3,25,00,000.00 (inclusive of Rs.25,00,000.00 already paid) on two separate dates and induced confidence in him by furnishing security in the form of immovable property and also issued four cheques. Since the amount was not repaid as promised, the said agreement was later renewed on 12/12/2014 and again on 12/2/2015, and the earlier cheques were replaced with new cheques for the aforementioned amount. The complainant also alleges that when the cheques were sent for collection, they were dishonoured with the memo that "drawers signature differs", for which cases under the Negotiable Instruments Act 1881 were filed. When the asset declaration of the accused for the election was verified, it was realised that there was a subsisting mortgage on the property offered as security. It was further realised that proceedings had been initiated against that property by the Bank in 2013. The complainant also alleged that the accused is now understood to be facing prosecution in 12 other criminal cases, most of which are for dishonouring of cheques and also that all his properties are pledged and huge amounts are due to all banks. According to the complainant, the series of acts reveal that the accused had the intention to cheat from the very beginning. Thus, the accused is alleged to have committed the offences punishable under Ss. 406 and 420 of IPC.