Bangalore District Court
Pharma Point vs Indian Pharma on 16 June, 2025
1 CC.No.33190/2023
KABC030585282023
Presented on : 18-12-2023
Registered on : 18-12-2023
Decided on : 16-06-2025
Duration : 1 years, 5 months, 29 days
IN THE COURT OF THE XVI ADDITIONAL CHIEF
JUDICIAL MAGISTRATE, BENGALURU CITY
Dated : This the 16th day of June 2025
Present: Smt.Tejaswini K.M, B.A.L., L.L.M.
XVI Addl.C.J.M., Bengaluru City.
Case No. C.C.No
: CC.No.33190/2023
Complainant : Pharma Point
having its office No.133,
1st Floor, Byrappa Lane,
Cottonpet Main Road,
Bangalore - 560053.
Represented by its proprietor
Sri.Mohammed Mateen.
(By Sri.H.G.Lakshmana Gowda.,
Adv,)
V/s
Accused : Indian Pharma
No.1-24/1/A, 1-24/2/A,
Shop No.Cellar
Near Hiremath Petrol Pump,
2 CC.No.33190/2023
Shahpur,
Yadgir District - 585223.
Represented by its
Proprietor Sri.Basu.
Bengaluru - 560050.
(By Sri.Krishna.R Adv.,)
Case instituted : 20.09.2023
Offence complained : U/s 138 of N.I Act
of
Plea of Accused : Pleaded not guilty
Final Order : Accused is Convicted
Date of order : 16.06.2025
JUDGMENT
The Complainant has filed this complaint against
the accused under the provisions of Sec.200 of the Code
of Criminal Procedure, for the offence punishable
U/Sec.138 of the Negotiable Instruments Act.
2. The case of the Complainant is as under:-
It is stated that the complainant is the distributor
of Pharmaceutical and Surgical medicines in the name
and style of Pharma Point. During course of his business
3 CC.No.33190/2023the accused have approached the complainant and
placed an order to distribute/supply of various
pharmaceutical and surgical medicines to the accused
pharmacy. Accordingly, the complainant has been
supplying the various pharmaceutical and surgical
medicines to the accused pharmacy since several years.
During the month of April 2023 to August 2023 the
complainant has supplied the medicines to the accused
through various tax invoices/bills for a sum of
Rs.89,375/- and same has been received by the accused
as follows:
Sl.No. Date Invoice Number Amount
1 23.02.2023 2438 Rs.44,100-00
2 15.04.2023 079 Rs.17,388-00
3 18.04.2023 087 Rs.26,712-00
4 06.05.2023 197 Rs.1,098-00
Total amount Rs.89,298-00
Amount Paid Nil
Balance Amount Grand Total
4 CC.No.33190/2023
3. Towards discharge of liability, the accused has
issued a part payment of amount of the cheques bearing
No.000322 dated 05.05.2023 for a sum of Rs.20,000/-
and cheque bearing No.000323 dated 12.05.2023 for a
sum of Rs.24,100/-, drawn on HDFC Bank Ltd.,
hahpur Branch, Yadgir District. The complainant has
presented the cheques before the bank. But the said
cheques got dishonoured for the reason ‘Funds
Insufficient’ vide memo dated 27.07.2023 and
04.08.2023. Therefore, the complainant got issued a
legal notice dated 14.08.2023 calling upon the accused
to pay the cheques amount within 15 days from the date
of service of legal notice. The notice was returned with a
shara ‘Refused’ on 17.08.2023. But, in spite of service of
legal notice, the accused has failed to pay the cheques
amount and thereby committed an offence punishable
U/s.138 of NI Act. Hence, the complainant has
constrained to file this complaint.
5 CC.No.33190/2023
4. Learned Predecessor in office having heard the
arguments of learned counsel for complainant and
having satisfied with the complaint averments, sworn
statement of complainant and documents at Ex.P1 to
P20 and prima facie materials placed on record has
taken the cognizance for the offence punishable U/s.138
of N.I.Act.
5. On service of summons, the accused has
appeared before the court through his learned counsel
and obtained the bail. The copies of all the prosecution
papers were supplied to the accused.
6. The Plea of accused for the offence punishable
U/s.138 of N.I.Act has been recorded vide dated
04.01.2025 and the substance of accusation has been
read over and explained to the accused in the language
known to him. The accused has pleaded not guilty, but
claims to be tried.
6 CC.No.33190/2023
7. In order to establish the guilt against the
accused, the complainant got himself examined as PW-1
and got the documents marked as Ex.P.1 to P.20.
8. But, in spite of sufficient opportunites were
given, the accused and his learned counsel continuously
remained absent and did not choose to cross-examine
PW.1 and therefore, the cross-examination of PW.1 was
ordered to be taken as nil and closed.
9. The statement of accused U/Sec.313 of Cr.P.C.
has been recorded on 04.01.2025 and the incriminating
as such forthcoming against the accused in the evidence
of complainant and documents has been read over and
explained to the accused in the language known to
accused and the accused has denied the evidence of the
complainant and documents.
10. It is pertinent to note here that the proceedings
of this nature where the accused is charged for the
offence punishable U/Sec.138 of N.I.Act is a summary in
7 CC.No.33190/2023
nature as per Sec.143 of N.I.Act and the provisions of
Sec.262 to 265 of Cr.P.C. are applicable to the trials.
As per Sub Sec.2 and 3 of Sec.143 of N.I.Act, the trial of
a case under this section shall, so far as practicable,
consistently with the interests of justice, be continued
from day to day until its conclusion, unless the court
finds the adjournment of the trial beyond the following
day to be necessary for the reasons to be recorded in
writing and every trial under section 138 of NI Act, shall
be conducted as expeditiously as possible and an
endeavour shall be made to conclude the trial within 6
months from the date of filing of the complaint.
11. Further, as per the principles laid down and
directions issued by the Hon’ble Supreme Court of India
in a decision reported in (2014) 5 SCC 590 in between
Indian Association Bank V/s Union of India, the chief-
examination, cross-examination and re-examination has
to be conducted on the same day and on day to day
basis untill its conclusion and the entire trial of the
8 CC.No.33190/2023
proceedings U/Sec.138 of N.I.Act has to be concluded
with the span of 3 months.
12. But, in the present case, in spite of sufficient
opportunites were given, the accused did not appear
before the court either personally or through his learned
counsel and thereby failed to cross-examine PW.1.
Under these circumstances, in order to comply the
mandates of Sec.143(2)(3) of NI Act and principles laid
down and direction issued by the Hon’ble Apex Court in
the case of Indian Bank Association V/s Union of
Inida reported in 2014(5) SCC 590, this court had no
option, but to proceed to pass necessary orders on the
available materails on record and acordingly, the cross-
examination of PW.1 was ordered to be taken as nil and
closed and since the proceedings U/sec.138 of NI Act
being summary in nature. The statement of accused
U/Sec.313 of Cr.P.C. has been recorded. The defence
evidence is also ordered to be taken as nil and closed.
9 CC.No.33190/2023
13. I have heard the arguments of complainant
counsel. The cosunel for the accused has not addressed
arguments. I have perused the oral and documentary
evidence placed on record.
14. Now, the points that would arise for my
consideration are as under:-
1. Whether the complainant proves that the
accused has issued 2 cheques bearing
No.000322 dated 05.05.2023 for Rs.20,000/-
and cheque bearing No.000323 dated
12.05.2023 for Rs.24,100/-, drawn on HDFC
Bank, Shahpur Branch, Yadgir District in his
favour towards the legally recoverable debt of
Rs.44,100/- and on presentation of cheques for
encashment before the bank, they were
dishonorued ‘Funds Insufficient’ vide bank
endorsements dt:27.07.2023 and 04.08.2023
and in spite of issuance of legal notice
dt:14.08.2023 and in spite of service of legal
notice, the accused has failed to pay the cheques
amount and thereby committed an offence
punishable U/s.138 of N.I.Act?
2. What Order?
10 CC.No.33190/2023
15. On considering and assessing the oral and
documentatry evidence placed on record, now my
answers to the above points are as under :
[ Point No.1: In the Affirmative.
Point No.2: As per final order for the following :-
REASONS
16. Point No.1 : It is the case of the complainant
that the accused has borrowed pharmaceutical and
surgical medicines from the complainant pharma and
towards repayment of loan amount, the accused had
issued cheques in question, but they got dishonoured for
the reason ‘Funds Insufficient’. Despite of giving legal
notice, the accused has failed to pay the cheques
amount and therefore, he has presented the compalint
before the Court.
17. The complainant has produced the cheques
dated 05.05.2023 & 12.05.2023, bank endorsements
27.07.2023 & 04.08.2023, legal notice dated
11 CC.No.33190/2023
14.08.2023, postal receipt, returned notice, postal cover,
postal receipt, tax invoices, receipts, GST Registrarion
Certificate, Certificate U/Sec.65-B of Indian Evidence
Act, Notarized copy of Licence and Complaint and they
are marked at Ex.P1 to P20.
18. The accused has not seriously disputed either
the issuance of cheques or dishonour of cheques with an
endorsements as ‘Funds Insufficient’ or issuance of legal
notice and its service during recording of plea on
04.01.2025. The defense of the accused was as that of
total denial as on recording of plea vide dated
04.01.2025. The accused did not choose to cross-
examine PW.1. The oral evidence of PW.1 and the
documentary evidence at Ex.P1 to P20 remained
unchallenged by the accused.
19. However, on careful perusal of complaint
averments, oral evidence of PW.1 and the documentary
evidence at Ex.P1 to P20, it clearly establishes that
12 CC.No.33190/2023
accused has issued 2 cheques vide Ex.P1 & P2 in favour
of the complainant for repayment of liability, but on
presentation of cheques for encashment before the bank,
the said cheques were dishonoured vide bank
endorsements at Ex.P3 & P4.
20. The materials placed on record clearly
establishes that the complainant got issued a legal
notice vide Ex.P5 calling upon the accused to pay the
cheques amount within 15 days from the date of service
of legal notice. But in spite of service of legal notice, the
accused failed to pay the cheques amount and therefore,
the complainant presented the complaint before the
court on 20.09.2023.
21. It is pertinent to note here that the cheques
vide Ex.P1 & P2. As could be seen from the document at
Ex.P3 & P4, the said cheques were dishonoured with an
ensorsements as ‘Funds Insufficient’ vide bank
endorsements at Ex.P3 & P4. So, it is crystal clear that
13 CC.No.33190/2023
the complainant has presented the cheques for
encashment before the bank well within the validity of
the cheques and they got dishonoured.
22. Further, as could be seen from the document at
Ex.P5, the complainant got issued a legal notice dated
14.08.2023 giving 15 days time to the accused to comply
the demands made in the notice, but it was returned.
But, in spite of service of legal notice, the accused has
failed to pay the cheques amount and therefore, the
complainant has presented the complaint before the
court which was well within time.
23. So, it is crystal clear that the complainant has
complied the mandates of Sec.138 of NI Act by adducing
the oral evidence of PW.1 and also by producing the
documentary evidence at Ex.P1 to P20. Therefore, when
once the complainant has complied the mandates of
Sec.138 of NI Act, then this court has no option, but to
raise and to draw the presumptions in favour of the
14 CC.No.33190/2023
complainant under the provisions of Sec.118 and 139 of
NI Act.
24. Admittedly, the presumptions available in
favour of the complainant U/Sec.118 and 139 of NI Act
are not conclusive proof, but they are rebuttable in
nature. Therefore, when once the complainant has
fullfilled the mandates of Sec.138 of NI Act and when
once the court has drawn the presumptions in favour of
the complainant under the provisions of Sec.118 and
139 of NI Act, then the onus shifts of the accused to
rebut the statutory presumptions available in favour of
the complainant under the provisions of Sec.118 and
139 of NI Act.
25. Now, let us consider as to whether the accused
could able to raise a probable defense and could able to
prove the same before the court with legal evidence and
could able to rebut the statutory presumptions available
15 CC.No.33190/2023
in favour of the complainant U/Sec.118 and 139 of NI
Act.
26. At the outset, it is ncessary to note here that
while recording the plea of accused on 04.01.2025, the
accused has pleaded not guilty, but claims to be tried.
In other words, it is to be noted here that the defense of
the accused at the time of recording of plea on
04.01.2025 was as that of total denial and there is no
specific defence. The accused has not stated anything
about the cheques. The accused has not stated as to
how and in what manner the cheques passed from his
possession to the hands of the complainant.
27. However, the accused did not choose to cross-
examine PW.1 in spite of sufficient opportunites were
given. In the absence of cross-examination of PW.1 and
in the absence of defense evidence and in the absence of
any cogent documentary proof and in the absence of any
materials, the defense of the accused as that of total
16 CC.No.33190/2023
denial is not sustainable under law and therefore,
cannot be accepted.
28. On appreciation of entire oral and documentary
evidence placed on record, it is found that the accused
has issued the cheques vide Ex.P1 & P2 in favour of the
complainant for legally recoverable liability of
Rs.24,100/- and on presentation of cheques for
encashment, they were dishonorued vide bank
endorsements at Ex.P3 & P4, but in spite of service of
legal notice, the accused has failed to pay the cheques
amount.
29. The complainant has established the guilt
against the accused with oral evidence of P.W.1 and the
documentary evidence at Ex.P1 to P20. The oral
evidence of PW.1 and the documentary evidence at
Ex.P1 to P20 remained unchallenged by the accused.
Under these circumstances, there are no reasons to
17 CC.No.33190/2023
disbelieve or to discard the oral evidence of P.W.1 and
the documentary evidence at Ex.P1 to P20.
30. Therefore, for the reasons discussed above,
this court is of the considered view that the materials
placed on record clearly establishes the guilt against the
accused for the offence punishable U/Sec.138 of N.I.Act.
Hence, I hold that the complainant has proved the guilt
against the accused for the offence punishable U/s.138
of NI Act. Hence, I answer point No.1 in the
‘Affirmative’.
[ 31. POINT. No.2:- Therefore, considering the
nature of transaction between the complainant and the
accused including facts and circumstances of the case
and regard being had to the time taken for disposal of
this case, conduct of the accused, this Court is of the
considered view that if the following sentence is
awarded, then it would meet the ends of justice. Hence,
18 CC.No.33190/2023
in view of my findings on point No.1, I proceed to pass
the following:-
ORDER
The accused is found guilty for the
offence punishable U/s.138 of
Negotiable Instruments Act.
Hence, acting U/sec.255(2) of
Cr.P.C, the accused is convicted and
sentenced to pay a fine of Rs.80,000/-
(Rupees Eighty Thousand Only), in
default of fine amount, he shall
undergo simple imprisonment for six
months under section 138 of N.I.Act.
Out of the fine amount collected
from the accused, an amount of
Rs.75,000/- (Rupees Seventy Five
Thousand only) shall be paid to the
complainant as compensation U/s.357
of Cr.P.C. and the remaining fine of
Rs.5,000/- shall be adjusted towards
the cost of state defraying expenses.
Office to supply the copy of the
Judgement to the accused forthwith at
free of cost.
(Dictated to the Stenographer, typed by her, corrected by me and then
judgment pronounced in the open court on this the 16th day of June 2025).
Digitally signed Tejaswini by Tejaswini K M KM Date: 2025.06.17 11:28:31 +0530 (Smt.TEJASWINI K.M) XVI ACJM, Bengaluru City. 19 CC.No.33190/2023 ANNEXURE
1. List of witness/s examined on behalf of the
Complainant:-
P.W.1 : Sri.Mohammed Mateen.
2. List of documents exhibited on behalf of the
Complainant:-
Ex.P.1 & 2 : Original Cheques. Ex.P.1(a) & 2(a) : Signatures of the Accused. Ex.P.3 & 4 : Bank Memos. Ex.P.5 : Copy of legal notice. Ex.P.6 : Postal Receipt. Ex.P.7 : Returned Notice. Ex.P.8 : Postal Cover. Ex.P.9 : Postal Receipt. Ex.P.10 to 13 : Tax Invoices. Ex.P.14 to 16 : Receipts. Ex.P.17 : GST Registration Certificate. Ex.P.18 : Certificate U/Sec.65-B of Indian Evidence Act. Ex.P.19 : Notarized copy of Licence. Ex.P.20 : Complaint.
3. List of witness/s examined on behalf of the
Accused:-
NIL
20 CC.No.33190/2023
4. List of documents exhibited on behalf of the
Accused:-
NIL
Digitally signed
Tejaswini by Tejaswini K M
KM Date: 2025.06.17
11:28:21 +0530(Smt.TEJASWINI K.M)
XVI ACJM, Bengaluru City
21 CC.No.33190/2023