BASAVARAJ Vs. DHANLAXMI FINANCE CO R TERDAL

JUDGEMENT

(1.) Leave granted.

(2.) Heard the Learned Counsel for the appellant. Despite service none has appeared on behalf of the respondent to oppose the appeal. The appellant has been convicted under Section 138 of the Negotiable Instruments Act (hereinafter referred to as 'the Act'), for having issued a cheque in favour of the respondent company in the sum of Rs. 22,350/-, which was dishonoured.

(3.) The respondent M/s. Dhanlaxmi Finance Co. (R) Terdal is a finance company. The appellant had availed a loan of Rs. 21,000/- on 31.1.2002. He had issued a cheque on 18.6.2002 for Rs. 22,350/-. According to the appellant the loan had been duly paid but the respondent has failed to return back the cheque which had been taken by them as security. The Trial Court convicted the appellant to undergo six months simple imprisonment and also to pay compensation of Rs. 35,000/- to the complainant.