THE MERCHANT CREDIT CO-OPERATIVE v. Court of Karnataka

THE MERCHANT CREDIT CO-OPERATIVE SOCIETY LTD., GONIKOPPAL, (NO.11265), VIRAJPET TALUK, KODAGU DISTRICT - 571 213 REPRESENTED BY ITS CEO-INCHARGE, SRI P A NANDAKUMAR, S/O SRI. APPAIAH P K, AGED ABOUT 47 YEARS, BITTANGALA VILLAGE AND POST, VIRAJPET TALUK, KODAGU - 571 218 (BY SRI. SACHIN B S, ADVOCATE) AND: Location: High Court of Karnataka SMT. AKSHATHA B N W/O NEVEEN B M, MAJOR, (MERCHANT BANK EMPLOYEE) R/O JODUBEETI, PONNAMPET, KODAGU - 571 216 (BY SRI. SACHIN B S, ADVOCATE) …APPELLANT …RESPONDENT THIS CRL.A. IS FILED UNDER SECTION 378(4) OF CR.P.C PRAYING TO SET ASIDE THE IMPUGNED ORDER DATED 03.11.2023 IN C.C.NO.1202/2022 ON THE FILE OF THE CIVIL JUDGE AND JMFC AT PONNAMPET AND RESTORE THE COMPLIANT TO ORIGINAL FILE IN THE INTEREST OF JUSTICE AND EQUITY. - 2 - CRL.A No. 01 of 2024 NC: 2024:KHC:2940 THIS APPEAL, COMING ON FOR ORDERS, THIS DAY, THE COURT DELIVERED THE FOLLOWING: JUDGMENT This appeal is filed by the complainant, challenging dismissal of the complaint filed by him for not taking steps against the respondent/accused, contending that the impugned order is not sustainable. On 03.11.2023, the learned counsel for accused could not take steps as he was suffering from ill health. The trial Court ought to have provided with one more opportunity to take steps. The dismissal order has resulted in miscarriage of justice and prays to allow the appeal, remand the case to provide opportunity to the complainant.

Complainant is a Co-operative Society engaged in banking and financial assistance to its account holders. Accused is an employee of complainant-Society. Accused along with other employees have made fraudulent entries and withdrawn a sum of Rs.5,20,000/- which fact came to light during internal audits. On being confronted with the same, she admitted her mistake in writing and issued the - 3 - CRL.A No. 01 of 2024 NC: 2024:KHC:2940 subject cheque for Rs.5,20,000/-. However, when presented it was dishonoured for want of sufficient funds. After issuing legal notice, the complaint is filed.

As evident the order sheet, on

16.07.2022, the trial Court has taken cognizance and issued summons on several times. However, the summons sent to the accused is not served and therefore, once again case was adjourned to 03.11.2023. On that day, for not taking steps the trial Court has dismissed the complaint. It is pertinent to note that as stated in the complaint, the accused has not received the legal notice also, as not staying in the address, which appears to be her last known address. Though multiple times summons was issued, in the order sheet the status of the summons sent is not forthcoming. Having regard to the fact that the cheque amount is Rs.5,20,000/- and complainant is a Merchants Credit Co-operative Society Ltd. and the matter is not decided on merit, this Court is of the considered opinion that a reasonable opportunity is required to be - 4 - CRL.A No. 01 of 2024 NC: 2024:KHC:2940 given to the complainant to secure the presence of accused and proceed with the matter and accordingly, the following: ORDER (i) Appeal is allowed. (ii) The impugned order dated 03.11.2023 passed in C.C.No.1202/2022 on the file of Civil Judge & JMFC., Ponnampet is set aside. (ii) The complainant is directed to appear before the trial Court on 08.02.2024 without waiting for further notice. (iii) The trial Court is directed to proceed with the matter in accordance with law, after providing reasonable opportunity to the complainant to secure the presence of the accused. Sd/- JUDGE RR List No.: 1 Sl No.: 46