KVR ENTERPRISES Vs. MADRAS CEMENTS LTD

JUDGEMENT

(1.) M/s KVR Enterprises, Proprietor K. Subramanyam, resident of Karuru of Krishna District preferred the present criminal revision case under Sections 397 and 401 of the Code of Criminal Procedure, 1973 ('Cr.P.C.' for short) against the judgment made in Criminal Appeal No. 158 of 1998 dated 13.12.2000 on the file of Metropolitan Sessions Judge whereunder the conviction recorded under Section 138 of the Negotiable Instruments Act, 1981 (for short, 'N.I. Act') and sentence against the accused/petitioner to undergo rigorous imprisonment for a period of one year and to pay a fine of Rs.20,000/-, in default, to undergo simple imprisonment for a period of three months made in C.C.No.242 of 1995 on the file of VIII Metropolitan Magistrate dated 29.10.1998 is confirmed.

(2.) The brief facts that are necessary for the disposal of the present criminal revision case may be stated as follows:

(3.) The complainant company is doing business at Vijayawada in cement whereas the accused is a Cement Retail Dealer doing cement business at Eluru. The accused opened a Khata in the complainant's branch office at Vijayawada and purchased cement on credit basis from time to time and he was liable to pay a sum of Rs.3,58,251-50ps. towards principal amount as per the katha copy. The accused gave a cheque bearing No.089993 dated 28.1.1993 for Rs.3,37,736/- drawn on Andhra Bank, Vuyyuru towards part payment, stating that it would be honoured as soon as it is presented to the bank. Believing the same, the complainant presented the same for collection in the bank but the cheque was returned to the complainant on 3.2.1993 with an endorsement "funds insufficient". The allegation of the complainant is that the accused with a dishonest intention gave the aforesaid cheque and therefore the complainant got issued a statutory legal notice on 15.2.1993 intimating the fact of dishonour of the cheque and demanded the accused to pay katha debt within 15 days from the date of receipt of notice. The accused, having received the notice on 19.2.1993, failed to pay the amount covered by the cheque. Therefore, the accused committed an offence punishable under Section 138 of the N.I. Act.