Case Law Details
Kakinada Chit Funds (P) Ltd Vs Chukkala Satyanarayana and Another (Andhra Pradesh High Court)
Andhra Pradesh High Court held that the complainant miserably failed to prove the offence under Section 138 of the Negotiable Instrument Act, 1881 against the respondent/accused beyond reasonable doubt. Accordingly, Criminal Appeal dismissed.
Facts- The case of the complainant is that accused joined as subscriber in one of the Chits conducted by complainant in Chit Group No.KCS-1C/11 on 11.10.1999 for the chit value of Rs.1,00,000/- payable in 25 monthly installments at the rate of Rs.4,000/- p.m. commencing from 18.07.1999 and terminating by 18.07.2001. The accused paid some installments, participated in auction held on 19.12.1999 and became highest bidder. He agreed to forego a sum of Rs.36,500/- and received prize money of Rs.63,500/- from the complainant but he did not pay the installments to the complainant in spite of repeated requests and demands except some installments up to 11.05.2000.
On the demand of complainant officials, accused issued a cheque drawn on Andhra Bank towards part payment of chit due to the complainant. Complainant presented the said cheque in Andhra Bank for encashment but it was dishonoured with an endorsement ‘Exceeds Arrangement’. Complainant got issued legal notice calling upon the accused to make payment due under the cheque. On receipt of notice, the accused approached the complainant company and requested it not to file a case and took away the dishonoured cheque and issued another cheque towards part payment and assured the complainant people that it will be honoured. Believing the words, complainant people presented the said cheque for encashment but it was also dishonoured with an endorsement of ‘Exceeds Arrangement’. Again, the complainant issued notice to the accused. The accused never paid the amount nor sent any reply. Hence, the complaint to prosecute the accused for issuing a cheque without having sufficient funds in his account.
The learned Magistrate found the accused not guilty of the charge for the offence under Section 138 of the NI Act. Felt aggrieved of the same, the unsuccessful complainant is before this Court as appellant.
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