Case against Mr. Kasthoori Raja dismissed
The Madras High Court on Thursday upheld the acquittal of film producer Mr. Kasthoori Raja in a cheque dishonour case filed by Mr. Gagan Bothra, who had alleged non-payment of ₹25 lakh under Section 138 of the Negotiable Instruments Act.
The criminal appeal, filed by the appellant appearing party-in-person, came up for final hearing on November 4, 2025. Arguments were heard for nearly two hours. Counsel for the Respondent, Mr. S. Haja Mohideen Gisthi, argued that the present complaint was linked to an earlier transaction of ₹40 lakh, which had already been adjudicated by the High Court in Crl.A. No. 330 of 2015.
– That acquittal was subsequently confirmed by the Supreme Court, and therefore, no separate consideration was warranted in the present appeal.
– It was further contended that the Income Tax Returns now produced by the appellant, after more than a decade, were not genuine and could not be relied upon to establish the alleged source of funds. The Respondent also submitted that the cheque in question was a blank security cheque issued during an earlier business arrangement, now being misused to create a false liability.
After considering the submissions, the Court observed that the complaint lacked clarity and the allegations were inconsistent with the appellant’s own testimony during cross-examination. The Bench held that the appellant had failed to prove the existence of a legally enforceable debt—a mandatory element for conviction under Section 138 of the NI Act.
– Accordingly, the Court dismissed the appeal and confirmed the acquittal ordered by the trial court, stating that the lower court had rightly appreciated the evidence and found no grounds for conviction.
