Delhi District Court M/S Fregnance Chits Pvt Ltd vs Pawan Jolly on 14 November, 2018 1 IN THE COURT OF MS PRABH DEEP KAUR : METROPOLITAN MAGISTRATE 02 : SOUTH : SAKET COURT : NEW DELHI M/S FREGNANCE CHITS PVT LTD VS PAWAN JOLLY CC No. 464671/2016 U/S 138 NEGOTIABLE INSTRUMENTS ACT JUDGMENT (1) Serial number of the case : 464671/2016 (2) Name of the complainant : M/s Fregnance Chits Pvt. Ltd 697/6, Kumhar Gate, Gyan Nagar, Sonepat, Haryana. Through: Prakash Chandra (AR) (3) Name of the accused, : Pawan Jolly, parentage & address S/o Sh. B.B. Jolly, R/o J38, South ExtI, New Delhi (4) Offence complained of or proved : 138 Negotiable Instruments Act, 1881 (5) Plea of the accused : Pleaded not guilty (6) Final Order : CONVICTION (7) Date of Institution : 07.05.2014 (8) Date on which reserved for judgment : 18.10.2018 (9) Date of Judgment : 14.11.2018 BRIEF STATEMENT OF THE REASONS FOR THE DECISION 1. The brief facts of this case as carved out from the complaint are that accused subscribed three chits of Rs. 2,00,00/ for 25 months and all the M/s Fragrance Chits Pvt Ltd Vs Pawan Jolly CC No. 464671/2016 Page 1 of 13 2 chit amount was paid to the accused as per the bid, by the complainant. The monthly installments of the each prized chit was Rs. 8,000/ per month inclusive of dividend. The accused paid some installments and thereafter the accused failed in paying the installments of the prized chits and ultimately after the settlement, the accused issued cheque no. 495993 dated 14.03.2014 for Rs. 3,17,300/ drawn on State Bank of India, South ExtnII, New Delhi towards full and final settlement of the three prized chits. The complainant presented the cheque in question with his banker which was returned dishonoured with remarks "Funds Insufficient" vide cheque returning memo dated 15.03.2014. Thereafter, on failure of accused to pay the said amount, a legal demand notice dated 08.04.2014 was sent to the accused through Regd. AD and speed post which was deemed to be duly served upon the accused. Despite that payment of the cheque in question was not made by the accused within the stipulated time of 15 days. Hence, the complaint. 2. In the presummoning evidence, affidavit by way of evidence Ex. P1 was filed by the AR of complainant. In his affidavit of evidence Ex. P1, the AR of complainant reiterated all the averments made in his complaint and relied on documents Ex.CW1/A to Ex.CW1/H, which are the board resolution dated 25.04.2014, original cheque in question, its return memo, copy of legal notice, postal receipts and A.D. Card, present complaint and chit agreements. After closure of presummoning evidence, since sufficient material was found against the accused, summoning order u/s 204 CrPC was passed against the accused vide order dated 09.05.2014. M/s Fragrance Chits Pvt Ltd Vs Pawan Jolly CC No. 464671/2016 Page 2 of 13 3 3. Accused appeared pursuant to issuance of summons and notice U/s 251 CrPC was served upon the accused vide order dated 04.11.2015 to which the accused pleaded not guilty and claimed trial. Accused stated that he has no liability towards the complainant. The cheque in question was taken by the complainant in blank as security. The cheque was presented by the complainant without informing him and misused the same before the maturity period of the chit fund. Accused further stated that he has no legal liability to pay the cheque amount to the complainant and he did not receive the legal notice. 4. Thereafter, upon application of accused U/s 145(2) N I Act to cross examine complainant and his witnesses, the same was allowed vide order dated 04.11.2015 and the accused was given an opportunity to cross examine the complainant and his witnesses. AR of complainant was duly