High Court of KeralaSingle JudgeConviction confirmed; sentence modified; compen...

K.AHIBOOSHAN S/O KUTTAN v. M/s SREELAKSHMI KURIES AND LOANS (P) LTD. & STATE OF KERALA

Case / Petition Number:CRL.R.P. No. 2480 of 2010 (CRL.Rev.Pet.No. 2480/2010)

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • V.K.Mohan
Judgment Date
2010-08-17
Court Decision / Holding
Conviction under section 138 NI Act confirmed; however, sentence modified to simple imprisonment for one day; required to pay Rs.45,000 as compensation under section 357(3) Cr.P.C. within three months; upon default, two months additional simple imprisonment; petitioner to appear on 15 November 2010 to receive the sentence; disposal of CRL.R.P accordingly.
Final Disposition
Conviction confirmed; sentence modified; compensation ordered; case disposed

Parties to the Case

Appellants / Petitioners

  • K.AHIBOOSHAN, S/O KUTTAN, Proprietor, Ganga Roadways, Karaparambu P.O., Kozhikode

Respondents

  • M/S. Sreelakshmi Kuries and Loans (P) Ltd., Kongad, Palakkad, represented by Manager M.Haridasan
  • State of Kerala represented by Public Prosecutor, High Court of Kerala, Ernakulam

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri P.K.ABOOBACKER(EDAPPALLY)

Counsels for Respondents

  • • Public Prosecutor SMT. PUSHPALATHA M.K.

Case Synopsis & Summary

This is a criminal revision petition by the accused challenging his conviction under section 138 of the Negotiable Instruments Act and the sentence imposed by the trial court, confirmed by the Addl. Sessions Court, Palakkad. The complainant, a private limited company engaged in kuri business, alleged that the accused, a subscriber to kuri No. C/17, defaulted in payment and issued a cheque dated 25.06.2008 for Rs. 39,950 to discharge the liability. The cheque was dishonoured for insufficiency of funds, and the accused failed to repay despite a formal notice. Consequently, cognizance was taken under s. 138 NI Act, and STC No. 2977/2008 was instituted. PW1 deposed and Exts. P1–P11 were produced; DW1 was examined for the defence with no material evidence produced. The trial court found that Ext. P1 cheque was issued to discharge a legally enforceable debt and convicted the accused under s. 138 NI Act, sentencing him to six months’ simple imprisonment and to pay Rs. 39,950 with interest at 8% per mensem from the date of dishonour. On appeal, the Addl. Sessions Judge dismissed the appeal. The High Court observed the contesting contentions but did not disturb the concurrent findings and, relying on the Supreme Court’s Damodar S. Prabhu decision, modified the sentence by reducing imprisonment to one day and increasing compensation to Rs. 45,000 under Cr.P.C. 357(3), with a three-month deadline for payment and a contingency of two months’ further imprisonment on default. The petition was disposed of accordingly on 17 August 2010.

Provisions of Law Cited

Section 138 of the Negotiable Instruments Act

Legal Doctrines & Maxims

  • Compensatory aspect of the remedy should be given priority over the punitive aspect in cheque dishonour cases (Damodar S. Prabhu v. Sayed Babalal H)

Submissions & Arguments

Contentions of Appellants / Petitioners

Argued that the complainant failed to establish the transaction, execution and issuance of the cheque and hence the conviction was unwarranted; contended that the courts below erred in convicting; urged that the sentence is excessive and sought interference, or at least a lenient modification raising the emphasis on a compensation-oriented remedy.

Contentions of Respondents

Submitted that the transaction and debt were proven; the cheque issued toward discharge of a legally enforceable liability; supported the concurrent findings of conviction and urged no interference with the conviction; relied on the statutory provisions and jurisprudence underpinning the liability under s.138 NI Act.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Damodar S. Prabhu v. Sayed Babalal HJT 2010 (4) SC 457PositiveCited to support the principle that in cheque dishonour cases, the compensatory remedy should be given priority over punitive penalties, guiding the court to modify the sentence in favor of compensation.

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Extracted Judgment Text

Exact text extracted from official judgment records.

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE V.K.MOHANAN TUESDAY, THE 17TH AUGUST 2010 / 26TH SRAVANA 1932 Crl.Rev.Pet.No. 2480 of 2010 -----------------------------CRA.96/2010 of ADDL. SESSIONS COURT FAST TRACK (ADHOC)-II, PALAKKAD ST.2977/2008 of JUDL.MAGISTRATE OF FIRST CLASS COURT-II, PALAKKAD .................... REVN. PETITIONERS: APPELLANT/ACCUSED --------------------------------------------------------------- K.AHIBOOSHAN,S/O.KUTTAN,PROPRIETOR, GANGA ROADWAYS, KARAPARAMBU PO,KOZHIKODE. BY ADV. SRI.P.K.ABOOBACKER(EDAPPALLY) RESPONDENTS: RESPONDENTS/COMPLAINANT AND STATE ------------------------------------------------ 1. M/S.SREELAKSHMI KURIES AND LOANS (P) LTD.,KONGAD, PALAKKAD, REP. BY ITS MANGER M.HARIDASAN. PIN- 69001. 2. STATE OF KERALA REPRESENTED BY THE PUBLIC PROSECUTOR,HIGH COURT OF KERALA,ERNAKULAM. R2 BY PUBLIC PROSECUTOR SMT. PUSHPALATHA M.K. THIS CRIMINAL REVISION PETITION HAVING COME UP FOR ADMISSION ON 17/08/2010, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: KVM/- ## **V.K.MOHANAN, J. ---------------------------------------Crl.R.P. No. 2480 of 2010 ----------------------------------------** Dated the 17th Day of August, 2010 ## **ORDER** The accused in a prosecution for the offence under section 138 of the Negotiable Instruments Act is the revision petitioner as he is aggrieved by the conviction and sentence imposed against him as per the impugned judgment. 2. The case of the complainant is that it is a private limited company conducting kuri business and the accused was one of the subscribers in kuri No.C/17 with a sala of Rs.1,00,000/- and the accused bid the kuri for an amount of Rs.70,000/- and thereafter there was default in paying the kuri amount and subsequently, towards the discharge of the liability, the accused issued a cheque dated 25.6.2008 for an amount of 39,950/- and when the said cheque presented for encashment, dishonoured as there was no sufficient fund in the account maintained by the accused and the revision petitioner/accused miserably failed to repay the cheque amount in spite of a formal notice caused to CRL.R.P.No.2480/10 **-:2:-** issue by him. With the said allegation, the complainant approached the Judicial First Class Magistrate-II, Palakkad by filing a formal complaint upon which cognizance was taken under Section 138 of the N.I.Act and instituted S.T.Case No.2977/2008. During the course of trial, from the side of the complainant PW1 was examined and produced Exts.P1 to P11 as documentary evidence. From the side of the defence, DW1 was examined. and no evidence was produced. After evaluation of the evidence and the materials on record, the trial court has found that Ext.P1 cheque was issued towards the discharge of a legally enforceable debt that due to the complainant and accordingly, the trial court held that the complainant has succeeded in establishing the allegation against the revision petitioner-accused and found that the revision petitioner-accused is guilty. Consequently, the accused is convicted under section 138 of the N.I.Act. On such conviction, the trial court sentenced the revision petitioner-accused to undergo simple imprisonment for a period of 6 months and to pay a sum Rs.39,950/- by CRL.R.P.No.2480/10 ## **-:3:-** way of compensation with interest at the rate of 8% per mensem from the date of dishonour of cheque i.e., 25.6.2008 till the date of payment. The default sentence is fixed as simple imprisonment for six months. Aggrieved by the above order of conviction and sentence, though the revision petitioner-accused preferred an appeal, by judgment dated 17.7.2010 in Crl.A.No.96/2010, the court of Addl. Sessions Judge, Fast Track No.II, Paklakkad, dismissed the appeal confirming the conviction and sentence. 3. Reiterating the contention taken by the defence during the trial and appellate stages, the learned counsel submitted that the complainant has not established the transaction, execution and issuance of the cheque and therefore, the courts below are absolutely wrong in convicting the revision petitioner-accused imposing sentence against him. The trial court as well as the lower appellate court has concurrently found in favour of the complainant and against the revision petitioneraccused. Though the revision petitioner is heard CRL.R.P.No.2480/10 **-:4:-** elaborately, nothing is brought out to take a different view to interfere with the concurrent findings of the courts below. All the contentions are based upon the facts and evidence on record which were elaborately considered by the courts below. Therefore, I find no reason to interfere with such concurrent finding of the courts below and accordingly, the conviction recorded by the courts below is confirmed. 4. As this court is not inclined to interfere with the conviction recorded by the courts below, the learned counsel further submitted that the sentence imposed by the courts below is highly unreasonable and exorbitant and the amount fixed by the courts below is also excessive and disproportionate to the liability and therefore, the counsel submitted that the sentence of imprisonment may be set aside and a breathing time may be granted to pay the amount. 5. Having regard to the facts and circumstances involved in the case, I am of the view that the said submission can be considered favourably, but subject to CRL.R.P.No.2480/10 **-:5:-** other facts and circumstances. 6. The cheque is dated 25.6.2008 that too for an amount of Rs.39,950/-. The courts below have concurrently found that the said amount is belonging to the complainant but the same is with the revision petitioner for the last two years. The Apex Court, in its recent decision in **Damodar S.Prabhu v. Sayed Babalal H** (J.T.2010 (4) SC 457), has held that in a case of dishonour of cheques, compensatory aspect of the remedy should be given priority over the punitive aspect. In the light of the above settled legal position and in view of the facts and circumstances referred to above, I am of the view that the sentence of imprisonment imposed upon the revision petitioner can be modified and the amount of compensation fixed by the courts below can be enhanced slightly. In the result, this Crl.R.P is disposed of confirming the conviction recorded by the trial courts below for the offence under section 138 of the N.I.Act . Accordingly, the revision petitioner is directed to undergo simple CRL.R.P.No.2480/10 **-:6:-** imprisonment for one day, i.e., till the rising of the court and the revision petitioner is further directed to pay a sum of Rs.45,000/- to the complainant as compensation under section 357(3) Cr.P.C., within three months from today, and in case of any default in paying the amount within the stipulated time, the revision petitioner is directed to undergo simple imprisonment for a period of two months. Accordingly, revision petitioner is directed to appear before the trial court on **15[th] November, 2010** to receive the sentence and to pay the compensation amount. If there is any default on the part of the revision petitioner in appearing before the trial court as directed above, the trial court is free to take coercive steps against the revision petitioner to secure his presence and to execute the sentence. This Crl.R.P. is disposed of accordingly. V.K.MOHANAN, JUDGE kvm/- CRL.R.P.No.2480/10 ## **-:7:-** kvm/- .