A. T. SIVAPERUMAL versus MOHAMMED HYATH (D) BY LRS.

Citation: [2017] 6 S.C.R. 669 · Decided: 27-03-2017 · Supreme Court of India · Bench: KURIAN JOSEPH · Disposal: Appeal(s) allowed
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Judgment (excerpt)

[2017] 6 S.C.R. 669 
A. T. SIVAPERUMAL 
v. 
MOHAMMED HYATH (D) BY LRS. 
(Criminal Appeal No. 587 of 2017) 
MARCH 27, 2017 
(KURIAN JOSEPH AND R. BANUMATHI, JJ.] 
Negotiable Instrument Act, 1881 -s.138-Acquittal of accused 
consequent to settlement between the parties - Towards discharge 
of a liability, appellant-accused issued a cheque to the complainant 
A 
B 
- The cheque, when presented for realization, was returned by the 
C 
bank with endorsement "account closed" - After issuance of 
statutory notice, complaint filed uls. I 38 - Trial court acquitted 
appellant-accused - However. High Court reversed the acquittal 
and convicted the appellant - On appeal, held: Parties were 
suggested to arrive at an amicable settlement, to which both parties D 
agreed - Parties arrived at a settlement - As a result, impugned 
judgment of High Court set aside and appellant acquitted of charge 
u/s.138. 
Allowing the appeal, the Court 
HELD: 1.1 By an earlier order, this Court had granted stay 
E 
on a condition that the appellant should deposit an amount of 
Rs.3,00,000/- (Rupees Three Lacs) before the Trial Court, which 
has been duly complied with. When the matter came up for hearing, 
the son of the appellant was present in the Court. Respondent 
No.4 was present in the Court, who stated that he is representing 
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all the legal representatives of complainant. The parties and their 
counsel were suggested whether they can talk to each other to 
arrive at an amicable settlement, for which both the parties as 
well as counsel appearing for the parties readily agreed. (Para SJ 
(671-C-D] 
1.2 After talking to each other the parties have arrived at a G 
settlement for a sum of Rs.6,00,000/-(Rupees Six Lacs) including 
the amount of Rs.3,00,000/- (Rupees Three Lacs) already 
·deposited before the Trial Court. The appellant is acquitted of 
the charge under Section 138 of the Negotiable Instruments Act, 
1881. (Paras 6, 7) (671-E-F] 
H 
669 
670 
SUPREME COURT REPORTS_ 
[2017] 6 S.C.R. 
A 
CRIMINAL APPELLATE JURISDICTION: Criminal Appeal No. 
587 of2017. 
From the Judgment and Order dated 06.01.2011 of the High Court 
ofKarnataka at Bangalore in Criminal Appeal No. 895 of2004. 
Ms. Lata Krishnamurti, Dr. B. Kalaivannan, Neeraj Shekhar, 
B Ashutosh Thakur, Animesh Kumar, Ajay Awasthi, P.R. Shankar, S. Syed 
Mahaboob, P. R. Bala Subramanian, Advs. for the Appellant. 
A.T.M. Sampath, Ms. T. S. Shanthi, Rahul Nagpal, Advs., for the 
Respondents. 
· c 
The Judgment of the Court was delivered by 
R. BANUMATHI, J. l. Leave granted. 
2. This appeal arises out of the judgment of the HigH Cotirt of 
Kamataka at Bangalore in Cr!. A. No.895 of2004 in and by which the 
High Court set aside the acquittal of the appellant and convicted him for 
D the offence under Section 138 of the Negotiable Instruments Act and 
imposing a fine ofRs.11,00,000/- (Rupees Eleven Lacs), in default to 
undergo simple imprisonment for a period of six months. Out of the 
fine amount, the High Court has directed that a sum of Rs. I 0,50,000/-
(Rupees Ten Lacs Fifty Thousand) be paid as compensation to the legal 
E representatives of the complainant/Mohammed Hyath. 
3. The case of the complainant/Mohammed Hyath is that the 
appellant/accused borrowed a sum of Rs. I 0,00,000/- (Rupees Ten Lacs), 
. on 01.01.2002, from him as a loan to develop his A.T.S. Groundnuts 
Sweets Factory at Bannerghatta Road, Bangalore and undertook to repay 
it on or before 16.08.2002 with simple interest. Further case of the 
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complainant is that towards discharge of the said liability, the appellant/ 
accused issued a cheque for a sum of Rs. I 0,22,419/- dated 14.11.2002 
drawn on Karnataka Industrial Co-operative Bank Limited, Bangalore 
Rural Branch, Chamarajpet, Bangalore. The said cheque, when it was 
presented for realization, was returned with the endorsement "account 
G closed". After issuing the statutory notice, the complainant had filed a 
complaint under Section 138 of the Negotiable Instruments Act in C.C. 
No.40274/2002 before the XVIII ACMM & XX ASCJ, Bangalore City. 
H 
4. The Trial Court by its judgment dated 27 .04.2004 acquitted the 
appellant/accused on the ground that the complainant has not proved the. 
A. T. SNAPERUMAL v. MOHAMMED HYATH (D) BY LRS. 
671 
[R. BANUMATHI, J.] 
case beyond reasonable doubt as the documentary and also the oral A 
evidence adduced by the appellant/accused substantiates the defence 
plea of the accused. Being aggrieved, the said complainant p
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