M. NAGARAJU Vs. LOKESH BAGAL

JUDGEMENT

(1.) This is an appeal preferred by the complainant against the judgment and order of acquittal passed by the trial Court in acquitting the respondent/accused in respect of an offence punishable under Sec. 138 of the Negotiable Instruments Act, 1881 (for short N.I. Act).

(2.) Heard the learned counsel for appellant/complainant and respondent/accused and perused the evidence and material on record.

(3.) The case of the complainant is that the complainant and accused are well known to each other and they are friends. During second week of April 2016, accused approached him and requested for financial assistance to the tune of Rs.7,25,000.00 to meet his domestic problems and assured to repay the same within six months. Believing his version, complainant mobilized the funds and paid the said amount by way of cash and while borrowing the amount, accused executed an on demand promissory note in favour of the complainant. After the lapse of stipulated period of time, when the complainant approached the accused for repayment of the hand loan, accused issued a cheque bearing No.340046 dtd. 4/11/2016 for a sum of Rs.7,25,000.00 drawn on Corporation Bank, Padmanabhanagara Branch, Bengaluru in favour of the complainant with instructions to encash the said cheque on due date and took back the on demand promissory note. When the said cheque was presented for encashment through his banker namely State Bank of Mysore, J.P. Nagara Branch, Bengaluru, it was dishounoured with a bank endorsement "fund insufficient" on 4/1/2017. Thereafter, a legal notice was issued on 12/1/2017 and inspite of receipt of the same on 18/1/2017 no amount was paid. On the other hand, evasive and untenable reply was given on 1/2/2017 by suppressing the true and real facts. Hence, it is alleged that the accused has committed an offence punishable under Sec. 138 of N.I. Act.