NON-REPORTABLE

IN THE SUPREME COURT OF INDIA CRIMINAL APPELLATE JURISDICTION

CRIMINAL APPEAL NO.2337 OF 2009 (Arising out of Special Leave Petition

(Crl.) No. 3860 OF 2009)

BASAVARAJ     ….APPELLANT(S)

VERSUS

M/S. DHANLAXMI FINANCE  CO. (R) TERDAL       .…RESPONDENT(S)

J U D G M E N T

SURINDER SINGH NIJJAR, J.

1. Leave granted.

2. Heard the Learned Counsel  for  the appellant.   Despite  

service  none  has  appeared  on  behalf  of  the  respondent  to  

oppose the appeal.  The appellant has been convicted under  

Section  138  of  the  Negotiable  Instruments  Act  (hereinafter

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referred to as ‘the Act’), for having issued a cheque in favour of  

the respondent company in the sum of Rs. 22,350/-, which  

was dishonoured.  

3. The respondent M/s. Dhanlaxmi Finance Co. (R) Terdal  

is  a finance company.  The appellant had availed a loan of  

Rs.21,000/-  on  31.1.2002.   He  had  issued  a  cheque  on  

18.6.2002  for  Rs.22,350/-.   According  to  the  appellant  the  

loan  had  been  duly  paid  but  the  respondent  has  failed  to  

return back the cheque which had been taken by them as  

security.  The Trial Court convicted the appellant to undergo  

six  months  simple  imprisonment  and  also  to  pay  

compensation of Rs.35,000/- to the complainant.   

4. Aggrieved  by  the  judgment  of  the  Magistrate,  the  

appellant preferred criminal appeal in the Court of Fast Track,  

Court No.2, Bangalore at Bagalkot.  The appeal was dismissed  

on 30.10.2006.  The appellant, therefore, challenged the order  

in appeal by way of criminal revision before the High Court of

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Karnataka  at  Bangalore.   The  High  Court  dismissed  the  

criminal  revision.   Therefore,  this appeal  by special  leave is  

filed against the order of the High Court.   

5. Learned  counsel  appearing  for  the  appellant  has  not  

challenged the conviction of the appellant.  He has restricted  

the  submission  only  to  the  question  of  sentence.   Learned  

counsel submitted that the respondent is a thriving company  

in finance.  The appellant is a small time petty businessman.  

He  had  given  a  blank  signed  cheque  to  the  respondent  

company as security apart from other loan papers.  He has in  

fact  discharged  the  loan  in  time.   However  in  view  of  the  

conviction of the appellant which had been upheld in appeal  

as well as the criminal revision, a prayer is made for leniency.  

It  is  stated  that  the  appellant  had  already  deposited  

Rs.5,000/-  on  9.2.2007  during  the  pendency  of  the  

proceedings  before  the  High  Court.   He  has  also  deposited  

Rs.1,000/- being the fine amount imposed by the Magistrate.  

During  the  pendency  of  the  proceedings  in  this  Court,  the

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appellant  deposited  a  sum  of  Rs.35,000/-.   Therefore,  the  

entire compensation as directed by the Trial Court has been  

paid together with the fine.

6. Upon consideration  of  the  entire  matter  we  are  of  the  

considered opinion that in the facts and circumstances of this  

case, ends of justice would be served by suitably reducing the  

sentence.  

7. The appellant has been facing criminal  prosecution for  

the last 7 years.  He is a petty businessman.  He has paid the  

hefty amount of compensation as a penalty for dishonour of  

the cheque issued by him.  No material has been placed on the  

record to indicate that the appellant had earlier committed any  

such or similar offence.   

8. In view of the foregoing, the conviction under Section 138  

of  the  Act  is  maintained.  The  substantive  sentence  of  

imprisonment  is  set  aside.   However,  sentence  of  a  fine  of

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Rs.1,000/- is maintained and imposition of compensation in  

the sum of Rs.35,000/- is also maintained. The order of the  

Trial Court confirmed by the Fast Track Court is modified to  

that extent.   

9. The appeal is, therefore, disposed of accordingly.  

………….……………………….J     (TARUN CHATTERJEE)

          ...…………………………………J           (SURINDER SINGH NIJJAR)

NEW DELHI DATED:  DECEMBER 8, 2009