P. CHANDRAKALA Vs. K. NARENDER

JUDGEMENT

(1.) Leave granted.

(2.) The respondent No.1 filed a private complaint before the V Metropolitan Magistrate, Hyderabad (Re-designated as III Additional Chief Metropolitan Magistrate, Hyderabad) against the appellant alleging that the appellant had borrowed a sum of Rupees five lakhs from him promising to repay the same on an agreed interest at the rate of 5% per annum and later the appellant did not repay the amount and on repeated demands, the appellant issued post-dated cheque dated 29.8.2000 for Rupees seven lakhs and the said cheque on presentation on 8.2001 was returned on the ground of `insufficient funds'. The appellant did not pay the amount in spite of issue of statutory notice. It was, therefore, alleged that the appellant has committed an offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter referred to as `the N.I. Act').

(3.) Learned magistrate took the complaint on file as CC No.103 of 2001 under Section 138 of the N.I. Act against the appellant. After trial, learned magistrate by his order dated 20.7.2005 convicted the appellant and sentenced her to undergo simple imprisonment (SI) for six months and to pay a fine of Rupees five hundred, in default of payment of fine, she was directed to undergo SI for ten days. She was also directed to pay a compensation of Rupees seven lakhs under Section 357(3) of the Cr.P.C. It was further held that if the appellant fails to pay the compensation, she will have to undergo SI for three months.