High Court of KeralaSingle JudgeCrL.L.P. dismissed / Special Leave Petition denied

Muthoot Leasing and Finance Ltd. (now renamed as Muthoot Vehicle & Asset Finance Ltd.) v. Somarajan and State of Kerala

Case / Petition Number:CRL.L.P.No.446 of 2012

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • V.K. Mohanan
Judgment Date
2012-08-01
Court Decision / Holding
CrL.L.P.No.446 of 2012 dismissed; leave to appeal denied.
Final Disposition
CrL.L.P. dismissed / Special Leave Petition denied

Parties to the Case

Appellants / Petitioners

  • Muthoot Leasing and Finance Ltd. (now Muthoot Vehicle & Asset Finance Ltd.), Kurian Towers, Opposite Saritha Theatre, Banerji Road, Ernakulam, represented by its Power of Attorney Holder Baby Sujatha

Respondents

  • SOMARAJAN, aged 56, Shalem House, Keerikad, Karthikappally, PIN 690 508
  • The State of Kerala, represented by the Public Prosecutor, High Court of Kerala, Ernakulam

Legal Representation & Advocates

Counsels for Petitioners

  • • C.S. Manilal
  • • S. Nidheesh

Counsels for Respondents

  • • George Varghese (Perumpallikuttyil)
  • • A.R. Dileep
  • • Nava Varghese

Case Synopsis & Summary

This Kerala High Court Criminal_L.P. challenges an acquittal under Section 138 of the Negotiable Instruments Act, 1881. The complainant, Muthoot Leasing and Finance Ltd., seeks leave under Section 378(4) Cr.P.C. to appeal the Magistrate’s order acquitting the accused under Section 255(1) Cr.P.C. The loan transaction between the complainant and the accused is said to be governed by Ext.P6 (loan agreement), while Ext.P1 constitutes a cheque for ₹1,50,964 that the complainant alleges the accused issued in discharge of the debt. The trial court’s analysis of Ext.P7 (statement of account) found it unclear about the number of instalments paid and when default occurred, and noted that the sale of repossessed vehicle proceeds were not credited or referenced. The court also observed that Ext.P1 was prepared in two different handwriting and ink colors, casting doubt on its genuineness and connection to the accused. The petitioner contends these findings are erroneous and warrant interference. The High Court, citing Apex Court authority on limited appellate interference with acquittals, dismisses the petition. It concludes there is no substantial or compelling reason to overturn the acquittal and denies leave to appeal.

Provisions of Law Cited

Section 138 of the Negotiable Instruments Act, 1881Section 378(4) Cr.P.C.Section 255(1) Cr.P.C.

Legal Doctrines & Maxims

  • Presumption of innocence
  • Limited jurisdiction of appellate courts to interfere with acquittals; perverse judgments exception

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner contends that Ext.P6 governs the loan transaction and Ext.P1 cheque for ₹1,50,964 was issued in discharge of the liability. It is argued that the trial court erred in accepting the defence’s version, noting that Ext.P7 shows insufficient detail on instalment defaults and that the sale proceeds of repossessed collateral were not credited. The absence of a demanded notice and other documentary proof allegedly fail to negate the complainant’s claim that the accused was aware of the debt. The defence’s assertion that the cheque could have been prepared after obtaining it in blank, combined with inconsistent handwriting and ink, is urged to be insufficient to exculpate the accused. The petitioner relies on the Supreme Court dictum limiting interference with acquittals to argue for special leave.

Contentions of Respondents

The respondents' position is that the trial court’s acquittal rests on lack of conclusive evidence that the cheque was issued in discharge of a legally enforceable debt. Ext.P7 does not record precise default dates, and there is no demand notice establishing awareness of liability. The trial court noted the cheque’s dual handwriting and ink discrepancy, suggesting possible fabrication. Given these circumstantial elements and the absence of credible linkage between the debt and Ext.P1, the respondents contend that there is no basis to disturb the acquittal and no exceptional circumstances justify grant of leave to appeal.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
State v. Rajasthan Darshan Singh @ Darshan Lal2012(4) Supreme 72PositiveCited to support the proposition that appellate interference with acquittals is very limited unless exceptional compelling circumstances and perverse judgment exist; the present case follows this principle in denying interference.

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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 WEDNESDAY, THE 1ST DAY OF AUGUST, 2012/10TH SRAVANA, 1934 Crl.L.P.No. 446 of 2012 -----------------------[AGAINST THE ORDER DTD.25.11.2010 IN CC.236/2008 of J.M.F.C., KAYAMKULAM] PETITIONER/COMPLAINANT: ----------------------- MUTHOOT LEASING AND FINANCE LTD. NOW RENAMED AS MUTHOOT VEHICLE & ASSET FINANCE LTD., KURIAN TOWERS, OPPOSITE SARITHA THEATRE BANERJI ROAD, ERNAKULAM, REP. BY ITS POWER OF ATTORNEY HOLDER BABY SUJATHA BY ADVS.SRI.C.S.MANILAL SRI.S.NIDHEESH RESPONDENTS/ACCUSED AND STATE: -----------------------------1. SOMARAJAN, AGED 56, SHALEM HOUSE, KEERIKAD, KARTHIKAPPALLY, PIN 690 508. 2. THE STATE OF KERALA, REPRESENTED BY THE PUBLIC PROSECUTOR HIGH COURT OF KERALA, ERNAKULAM. R1 BY ADV. SRI.GEORGE VARGHESE(PERUMPALLIKUTTIYIL) BY ADV. SRI.A.R.DILEEP BY ADV. SMT.NAVA VARGHESE R2 BY PUBLIC PROSECUTOR SRI.P.M.SANEE. THIS CRIMINAL LEAVE PETITION HAVING BEEN FINALLY HEARD ON 01- 08-2012, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: ## **V.K.MOHANAN, J.** ## **---------------------------------------Crl.L.P.No. 446 of 2012** **---------------------------------------Dated this the 1[st] day of August, 2012** ## **O R D E R** The complainant in a prosecution for the offence under Section 138 of the Negotiable Instruments Act, 1881 (for short 'the N.I.Act') is the petitioner herein, who seeks special leave under Section 378(4) of the Criminal Procedure Code (for short 'the Cr.P.C.) to file an appeal against the order of the trial court by which the learned Magistrate in his complaint, acquitted the accused under Section 255(1) of the Cr.P.C. 2. Counsel for the petitioner submitted that the loan transaction between the complainant and the accused is governed by the provisions that contained in Ext.P6 agreement. But, the accused failed to repay the monthly instalments and when the accused is demanded to clear the liability, he issued Ext.P1 cheque towards the discharge of the liability of `1,50,964/-. Thus, according to the learned counsel, the findings of the court below are incorrect and CRL.L.P.NO.446 of 2012 :-2-: liable to be interfered with. 3. I am unable to sustain the above contention. The learned Magistrate, who had perused Ext.P7 statement of account, has concluded that Ext.P7 does not disclose, how many instalments were repaid by the accused and at which stage the accused committed the default. Against the above finding, the learned counsel for the petitioner submitted that generally, in Ext.P7 like statement, the date of default of instalment is not specifically mentioned. According to the learned counsel, the payment as and when made by the loanee will be entered in Ext.P7. The learned Magistrate has specifically found that even though PW1 has admitted that the vehicle purchased by the accused was repossessed by the complainant and sold, the sale proceeds are not even credited to the account of the accused and there is no reference with respect to the above fact in Ext.P7. It is also crystal clear that to prove the case of the complainant that the accused executed the cheque for an amount of `1,50,964/-, there is no ## CRL.L.P.NO.446 of 2012 :-3-: satisfactory evidence. No material is produced to show that the accused was aware of the amount allegedly due to the complainant and on understanding such liability, he issued Ext.P1 cheque. No demand notice or any other document is produced by the complainant to show that the accused was aware of the due amount. In this juncture, it is relevant to note that the trial court has specifically found on perusal of Ext.P1 cheque that the cheque was prepared in two different hand writings. According to the learned Magistrate, the ink used for preparing the cheque is also different and it is further found that the entries are in blue ink whereas the signature is in black ink. So, on the basis of the above datas, the learned Magistrate has concluded that those facts reveal that there is all probability for preparing the cheque in the present form after obtaining it from the accused in blank. The failure on the part of the complainant to produce any documentary evidence to show that the accused was aware of the amount mentioned in Ext.P1 cheque assumes importance ## CRL.L.P.NO.446 of 2012 :-4-: in the above context. Thus, the complainant has failed to establish the execution of Ext.P1 cheque. In the light of the above discussion and the materials, which are referred to above as seen from the judgment sought to be impugned, it can be seen that the learned Magistrate refused to accept the case of the complainant and opted to accept the case of the defence and found that it is not possible to hold that the accused issued Ext.P1 cheque to the complainant in discharge of a legally enforceable debt. Thus, the above findings and conclusions of the learned Magistrate are supported by evidence and materials on record. 4. In a recent decision of the Apex Court reported in **State** v. **of Rajasthan Darshan Singh @ Darshan Lal** (2012(4) Supreme 72), the Hon'ble Apex Court has held that the jurisdiction of the appellate court to interfere with the order of acquittal is very limited. The Apex Court has held:- “ _In cases where there are exceptional compelling circumstances and the judgment under_ CRL.L.P.NO.446 of 2012 :-5-: _appeal is found to be perverse, the appellate court can interfere with the order of acquittal. The appellate court should bear in mind the presumption of innocence of the accused and further that the trial court's acquittal bolsters the presumption of his innocence.”_ Thus, on examination of the facts and circumstances involved in the present case, in the light of the above dictum laid down by the Apex Court in the decision cited supra, I find no scope for any interference, even if an appeal is entertained against the above finding and the order of acquittal and there is no substantial or compelling reason to interfere with the order of acquittal recorded by the learned Magistrate or establish that the judgment is perverse. Therefore, the petitioner has miserably failed to make out a case to grant special leave under Section 378(4) of Cr.P.C. Accordingly, this Criminal Leave Petition is dismissed. sd/- MBS/ **V.K.MOHANAN,** Judge ## CRL.L.P.NO.446 of 2012 :-6-: V.K.MOHANAN, J. CRL.L.P.NO.446 of 2012 :-7-: CRL.L.P.No. OF 20 O R D E R Dated:2. ..2011 ## CRL.L.P.NO.446 of 2012 :-8-: