In a significant legal development, the Supreme Court of India has pronounced its judgement in the case involving Reddy Satyanarayana and Narapureddy Sanyasi Rao. The court has acquitted Reddy Satyanarayana of the charge under Section 138 of the N.I. Act following a compromise agreement with Narapureddy Sanyasi Rao. This outcome marks the conclusion of a complex legal battle with implications for financial transactions and legal obligations.
Facts
- Ganga Bhavani Constructions borrowed Rs.10,00,000 from Narapureddy Sanyasi Rao on 04.04.2007.
- The cheque presented by Ganga Bhavani Constructions was returned with ‘payment stopped by drawer’ endorsement on 18.04.2008.
- Ganga Bhavani Constructions issued a cheque on 17.04.2008.
- A Compromise Memo attested by the Notary Public at Delhi has been filed by Ganga Bhavani Constructions today.
- Ganga Bhavani Constructions executed a promissory note in favor of Narapureddy Sanyasi Rao.
- Narapureddy Sanyasi Rao filed a complaint under Section 138 of the N.I. Act.
- As per the Compromise Memo, Narapureddy Sanyasi Rao has received Rs.10,00,000 from Ganga Bhavani Constructions.
- Narapureddy Sanyasi Rao is present in the Court and identified by his AADHAR card.
- The High Court affirmed the conviction and sentence of imprisonment imposed upon the appellant.
- The First Appellate Court also affirmed the conviction and reduced the sentence of imprisonment from two years to one year.
- The Revision Petition filed by the appellant was dismissed by the High Court on 11.10.2018.
- The appellant admitted his signature on the cheque but failed to rebut the presumption under Section 138 of the N.I. Act.
- The Trial Court convicted the appellant under Section 138 of the N.I. Act and sentenced him to two years of simple imprisonment.
Also Read: High Court Acquittal Case of State of Uttar Pradesh v. Jai Prakash
Decision
- Appellant has deposited Rs.5,00,000 before the Trial Court as directed by the Court.
- Appellant and second respondent have reached a compromise.
- Second respondent has received Rs.10,00,000 as part of the compromise.
- Conviction of the appellant under Section 138 of N.I. Act is set aside due to the compromise.
- Appellant, Sri Reddy Satyanarayana, is acquitted of the charge under Section 138 of N.I. Act.
- Second respondent has confirmed receiving the entire cheque amount of Rs.10,00,000 as per the compromise.
Also Read: Judgment Review: Supreme Court’s Ruling on the Capital Punishment Appeal
Case Title: M/S GANGA BHAVANI CONSTRUCTIONS Vs. THE STATE OF ANDHRA PRADESH
Case Number: Crl.A. No.-001290-001290 / 2019
