SESHASAYEE PAPER & BOARDS LTD. Vs. 3H CLASSICS

JUDGEMENT

(1.) This Criminal Appeal challenges the judgment of the XIX Additional Sessions Court, Chennai, dtd. 14/2/2018, in Crl.A.No.68 of 2017. The Appellate Court overturned the conviction and sentence given by the Trial Court. Crl.A.No.68 of 2017 was filed by the respondent/accused, who was dissatisfied with the judgment of the learned Metropolitan Magistrate, Fast Track Court IV, George Town, Chennai, in C.C.No.2898 of 2013, dtd. 1/3/2017. The Trial Court had found the respondent/accused guilty of an offence under Sec. 138 of the Negotiable Instruments Act, 1881, and sentenced him to six months' Simple Imprisonment and a fine of Rs.11,88,199.00, representing the value of three dishonoured cheques, to be paid within one month of the judgment. In default of payment, he was to undergo an additional two months of Simple Imprisonment.

(2.) This is a private complaint filed by the appellant Company under Sec. 200 of the Code of Criminal Procedure. The case of the appellant/complainant is that it is the manufacturer of papers and boards and it also markets them all over India and abroad. The respondent/accused approached the appellant/complainant and purchased papers, namely, cup stock board on 5/3/2012 vide Invoice No.SPB/CMO/TNGST/IMP cum Stock/10-11/179/2115070205, for a total value of Rs.11,88,199.00. After several requests and demands made by the appellant/complainant, the respondent/accused, in discharge of the aforesaid liability, issued three cheques as follows:- <IMG>JUDGEMENT_318_LAWS(MAD)11_2025_1.jpg</IMG>

(3.) The cheques were presented for collection by the appellant/complainant with their bankers on 17/10/2012. However, they were returned dishonoured with the endorsement 'funds insufficient' and a memo of dishonour dtd. 18/10/2012. The appellant/complainant received this intimation on 19/10/2012. As a result, the appellant/complainant issued a statutory notice on 6/11/2012, calling on the respondent/accused to pay the amount due under the cheques within 15 days of receiving the notice. The respondent/accused received the notice on 14/11/2012 but did not pay the amount within the statutory period, leading to the filing of the complaint.