Case Title: Prem Raj vs. Poonamma Menon & Anr. : Read Full Judgment
The Supreme Court granted leave to appeal in the case where the appellant contested a judgment from January 23, 2018, issued in Crl.R.P. No.1111 of 2011 by the High Court of Kerala. This judgment partially allowed the appellant’s Revision Petition against a judgment from the Additional Sessions Judge, Thrissur, dated January 11, 2011, in Criminal Appeal No.673 of 2007. The appellant was convicted under Section 138 of the Negotiable Instruments Act, 1881, for dishonoring a cheque issued to the complainant.
The main issue before the court was whether a criminal proceeding could be initiated and the accused held guilty for a transaction already adjudicated upon by a civil court. The appellant borrowed Rs. 2,00,000 from the complainant and issued a cheque in return, which was later dishonored due to insufficient funds. Subsequently, the appellant filed a civil suit regarding the same transaction.
The civil court decreed in favor of the appellant against the defendants, including the complainant, regarding the disputed cheque. Despite this, the criminal court convicted the appellant based on the dishonored cheque, which was also the subject of the civil suit. The appellant appealed this decision, arguing that the civil court’s decree should bind the criminal court.
The Supreme Court referred to various precedents and concluded that conflicting decisions between civil and criminal courts are not relevant, except for certain limited purposes like sentence or damages. Since the criminal court imposed both sentence and damages, it should be bound by the civil court’s decree regarding the nature of the disputed cheque. Therefore, the criminal proceedings and the consequent conviction were deemed unsustainable and were quashed. The damages imposed by the lower courts were also ordered to be returned to the appellant.
In conclusion, the Supreme Court allowed the appeal, quashed the judgments of the lower courts, and directed the return of damages to the appellant.
