VIJAY GOPALA LOHAR Vs. PANDURANG RAMCHANDRA GHORPADE

JUDGEMENT

(1.) Leave granted.

(2.) The appellant was acquitted by the Trial Court for an offence punishable under Section 138 of the Negotiable Instruments Act, 1881 ('NI Act') and sentenced to pay a fine of Rs.40,000/-.

(3.) The case of the complainant/respondent is that the appellant took a hand loan of Rs.50,000/- with an assurance that he would return the amount within six months. Two cheques for an amount of Rs.25,000/- each were issued by the appellant in favour of the respondent/complainant. The cheques were deposited in the bank by the respondent/complainant which were returned with an endorsement "funds insufficient". The Respondent issued two notices on 04.03.2004 and as no payment was made even after the receipt of the notices, he filed two complaints under Section 138 of the NI Act. Though the amount of Rs.25,000/- was mentioned in the notices, there was a reference to the loan amount which had to be returned by the appellant according to the notices. The Trial Court held that the notices were defective on the ground that the notices mentioned loan amount and not the cheque amount. The Trial Court was of the opinion that the notices were contrary to Section 138 of the NI Act.