ELGI FINANCE LIMITED Vs. R PRABAKARAN

JUDGEMENT

(1.) THIS appeal has been preferred by the complainant in c. C. No. 448 of 2000 on the file of the Court of Judicial magistrate No. VI, Coimbatore, against A2, A4 and A5. The private complaint was preferred by the defacto-complainant, p. W. 1, on behalf of the de jure complainant viz. M/s ELGI finance Limited.

(2.) THE short facts as narrated in the private complaint which was preferred against the accused under Section 200 of Cr. P. C for an offence punishable under Section 138 of the NI Act relevant for the purpose of deciding this appeal are as follows:-The Assistant Manager of the de jure Complainant has preferred this complaint. The de jure complainant viz. M/s elgi Finance Limited, is a finance company carrying on business such as hire purchase, Leasing, Bill Discounting, merchant Banking and Collecting Fixed Deposits from their customers. The accused introduced themselves to the complainant and requested the complainant to extend revolving purchase bill discounting facility. A2 to A5 are the Directors of A1-company. As per the requisition made by the accused the complainant had extended revolving purchase bill discounting facility to the accused vide hundi Nos. 11, 12, 13 and 14 amounting to Rs. 1,00,00,849/ -. As per the said bill discounting facility, if the accused fails to make the repayment on the due date, the accused will be liable to pay 42% penal interest. The maturity date of hundi Nos. 11, 12, 13 and 14 was on 25. 06. 1996. The accused are liable to pay an additional factoring charge of Rs. 5,75,391. 31 as on 13. 08. 1996. The accused issued three cheques, dated 14. 08. 1996, bearing cheque No. 119413 for a sum of rs. 24,99,219/-, cheque No. 119416 for a sum of Rs. 25,02,231/-, cheque No. 119415 for a sum of Rs. 24,99,855/-, drawn in favour of the complainant in Tamilnadu Mercantile Bank limited, towards repayment of bills discounted and towards part payment of additional factoring charges. The accused had requested the complainant to present the aforementioned three cheques for encashment on 14. 08. 1996. As per the requisition made by the accued, the complainant presented the aforementioned three cheques for encashment on 14. 08. 1996 through the banker of the complainant, Canara bank, Alagapuram, Salem. On presentation, the cheques were dishonoured by the banker of the accsued due to "funds insufficient" and the complainant was in receipt of the memorandum dated 14. 08. 1996 issued by the banker of the accused through the banker of the complainant along with the debit advice datd 16. 08. 1996 issued by the banker of the complainant. The factum of dishonouring of the cheques was immediately informed to the accused to a registered notice dated 23. 8. 1996 demanding the accused to pay the total amount of the cheques thereon, within 15 days from the date of receipt of the said notice by the accused. The A1 to A5 were in receipt of the said notice on 24. 08. 1996 and after receipt of the said notice, the accused has not cared to pay the amount demanded by the complainant within the stipulated time given. The accused were fully aware that they have no funds in their account with their banker at the time of issuing the said cheques and then requested the complainant to present the same for encashment. Hence the complaint.

(3.) AFTER taking the sworn statement of the defacto complainant, P. W. 1, the learned Judicial Magistrate has taken the complaint on file in C. C. No. 448 of 1996. On appearance of the accused copies under Section 207 of Cr. P. C were furnished to the accused. When the offence under section 138 of NI Act charge against the accused was explained to the accused, they pleaded not guilty. On the side of the complainant, P. W. 1 was examined and Exs. P. 1 to p. 12 were marked. On the side of the accused neither oral nor documentary evidence was let in.