Case Summary
The complainant, a private limited company, alleges that the accused issued a cheque that was dishonored due to insufficient funds. The case revolves around the liability of the accused as sureties for a chitty subscriber.
Judgment Outcome
Judgment Favored
Plaintiff
Relief Granted
Compensation of Rs.2,70,000/- to the complainant
Case Type
Criminal Case
Final Judgment
No
The court found both accused guilty of the offence under Section 138 of the N.I. Act and sentenced them to imprisonment and a monetary compensation.
Why Plaintiff Won:
The court established that the cheque was issued in discharge of a legally enforceable debt and was dishonoured due to insufficient funds.
The court established that the cheque was issued in discharge of a legally enforceable debt and was dishonoured due to insufficient funds.
Losing Side's Weaknesses:
The court established that the cheque was issued in discharge of a legally enforceable debt and was dishonoured due to insufficient funds.
The court established that the cheque was issued in discharge of a legally enforceable debt and was dishonoured due to insufficient funds.
Supporting Evidence
The liability towards the company is proved by the evidence of PW1 and a number of documentary evidence. A surety has same liability as of the borrower to repay the amount borrowed.
Judgment Evidence:
In the result, the accused 1 and 2 are convicted U/s 138 of NI Act and sentenced to undergo simple imprisonment till rising of the court and to pay a compensation of Rs.2,70,000/- (Rupees Two Lakhs Seventy Thousand only) to the complainant as compensation u/s.357 (3) Cr.PC.
Parties Involved
Parties
- Party Role
- Plaintiff
- Party Name
- Sree Gokulam Chit and Finance Company (P) Ltd.
- Party Role
- Defendant
- Party Name
- Toy Joseph
- Party Age
- 39
- Relation
- D/o
- Party Role
- Defendant
- Party Name
- Xavier Joseph
- Party Age
- 45
- Relation
- S/o
Plaintiffs Documents
Certified copy of Power of Attorney, Debt Acknowledgment, Guarantee Deed, Monthly ledger extract, Cheque bearing No.2072, Cheque return memo, Lawyer's Notice, Postal receipt
Defendants Documents
Advocates
- Party Role
- Plaintiff
- Advocate Name
- Anupa Das
- Appearance Type
- Main Counsel
- Party Role
- Defendant
- Advocate Name
- Sony Thomas
- Appearance Type
- Main Counsel
Reliefs
Relief Type:
Damages
Outcome:
Granted
Description:
Compensation awarded to the complainant company.
Evidence:
Accused 1 and 2 are convicted U/s 138 of NI Act and sentenced to undergo simple imprisonment till rising of the court and to pay a compensation of Rs.2,70,000/-.
Relief Type:
Imprisonment
Outcome:
Granted
Description:
Imprisonment for the accused.
Evidence:
Sentenced to undergo simple imprisonment till rising of the court.
Documents & Evidence
Document Type:
Power of Attorney
Submitted By:
Plaintiff
Relevance:
Certified copy producing authority to represent the complainant company.
Reference:
Ext.P1
Document Type:
Debt acknowledgment
Submitted By:
Plaintiff
Relevance:
Acknowledgment of the debt owed by the accused to the complainant.
Reference:
Ext.P2
Document Type:
Guarantee deed
Submitted By:
Plaintiff
Relevance:
Deed executed by the accused as sureties for the subscriber's debt.
Reference:
Ext.P3
Document Type:
Monthly Ledger Extract
Submitted By:
Plaintiff
Relevance:
Evidence of arrears in repayment by the accused.
Reference:
Ext.P4
Document Type:
Cheque
Submitted By:
Plaintiff
Relevance:
Cheque issued by the accused for discharging liability to the complainant.
Reference:
Ext.P5
Document Type:
Cheque Return Memo
Submitted By:
Plaintiff
Relevance:
Evidence of dishonour of the cheque due to insufficient funds.
Reference:
Ext.P6
Document Type:
Lawyers notice
Submitted By:
Plaintiff
Relevance:
Legal notice issued to the accused regarding the cheque dishonour.
Reference:
Ext.P7
Document Type:
Postal receipt
Submitted By:
Plaintiff
Relevance:
Proof of sending the legal notice to the accused.
Reference:
Ext.P8
Document Type:
AD card
Submitted By:
Plaintiff
Relevance:
Acknowledgment of receipt of the legal notice by the accused.
Reference:
Ext.P9
Case Classification
Case Type
Criminal Case
Category
Cheque Bounce Cases
District
Kottayam
State
Kerala
Court Establishment
Munsiff Court Kanjirappally
Common Reasons
Cheque dishonour
Case Code
S.T.
Case Code Year
2017
Case Flags
Cheque-Related Case
Imprisonment Involved
Nature of Cheque Case
Cheque Dishonour under Section 138 N.I. Act
Imprisonment Duration
3 months