PRAGATI CREDIT CO Vs. SURESH S/O SHAMRAO GODE, AGED ADULT, OCCU : BUSINESS, R/O. SANGAM NAGAR, KATOL, DISTT. NAGPUR
HIGH COURT OF BOMBAY
Pragati Credit Co
Suresh S/O Shamrao Gode, Aged Adult, Occu : Business, R/O. Sangam Nagar, Katol, Distt. Nagpur
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Indira Jain, J. -
(1.) (Oral) - The present appeal takes an exception to the judgment and order dated 30.3.2012 passed by the learned Judicial Magistrate, First Class, Katol in Summary Criminal Case No.912/2009.
(2.) The facts giving rise to the appeal may be stated in nutshell as under :
a) Appellant is a registered co-operative society. Respondent no.1 was in need of money and in the year 2003, he approached the appellant-society for loan of Rs.30,000/-. On 3.9.2003, loan of Rs.30,000/- was sanctioned to respondent no.1. He agreed to repay the loan with interest thereon in monthly instalments. He was irregular in repayments.
b) On 7.9.2009, respondent no.1 issued cheque for Rs.82,000/- drawn on Shikshak Sahakari Bank, Katol in favour of appellant-society. The cheque was presented for encashment. On 11.9.2009, cheque was returned by the banker with endorsement insufficient funds . In turn, banker informed appellant-society. On receipt of memo from the bank, appellant-society issued statutory notice to respondent no.1 on 8.10.2009. Since respondent no.1 did not comply with the demand in the notice, criminal proceedings under Section 138 of the Negotiable Instruments Act (for short N.I. Act ) were instituted on 25.11.2009.
(3.) Particulars of accusations were explained to accused/respondent no.1. He denied the accusations. Complainant examined its duly authorised signatory as a sole witness. Accused did not examine himself or any other witness in favour of his defence. After scrutiny of the evidence and documents produced by complainant-society, trial court came to the conclusion that penal liability under Section 138 of the N.I. Act does not arise, as claim of complainant was barred by limitation and cheque was not issued in the discharge of legal liability. In consequence thereof, trial court acquitted the accused of the offence punishable under Section 138 of the N.I. Act.;
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