K.RAMU Vs. KUMBESHWARA CREDIT CO-OP

JUDGEMENT

(1.) The present petitioner as the accused was tried by the Court of the learned XII Additional Chief Metropolitan Magistrate at Bangalore City (hereinafter for brevity referred to as the "Trial Court") in C.C.No.18951/2007 for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter for brevity referred to as the "N.I. Act") and was convicted for the said offence by its judgment of conviction and order on sentence dated 13-05-2010.

(2.) It is the case of the complainant in the Trial Court that, the complainant is a Credit Co-operative Society and the accused is one of its members. The accused availed loan of a sum of Rs. 90,000/- from it, agreeing to repay the said loan amount together with interest thereupon at the rate of Rs.18% per annum. The accused failed to repay the loan amount within the agreed time which made the complainant to demand the said loan amount. As such, towards the repayment of loan amount, the accused issued a cheque bearing No.870197 for a sum of Rs.,25,330/- drawn on Corporation Bank, S.C. Road, Bangalore. When the said cheque was presented by the complainant, the same came to be returned with banker's endorsement as 'funds insufficient'. It is thereafter the complainant got issued a legal notice demanding the cheque amount from the accused. However, the accused neither met the demand made in the notice nor replied to the said notice, which constrained the complainant to institute a case against the accused for the offence punishable under Section 138 of the N.I. Act in the Trial Court.

(3.) The accused contested the matter appearing through his counsel.