SHEIK ALI Vs. H.R.THILOTHAM

JUDGEMENT

(1.) The petitioner has challenged the concurrent finding of fact recorded by the Trial Court as well as the First Appellate Court convicting the petitioner for an offence punishable under Sec. 138 of the Negotiable Instruments Act, 1881 (for short, 'the N.I. Act').

(2.) The respondent herein lodged a private complaint accusing the petitioner herein of an offence punishable under Sec. 138 of the N.I. Act. He claimed that the petitioner had borrowed a loan of Rs.3,50,000.00 from him and towards repayment of the said loan, the petitioner had issued a cheque dtd. 12/1/2012 for a sum of Rs.3,50,000.00 and when the said cheque was presented for encashment, it was dishonoured as the account was closed. After issuing appropriate notice of demand, the respondent filed a complaint accusing the petitioner of an offence punishable under Sec. 138 of the N.I. Act.

(3.) The case was contested by the petitioner herein. The petitioner claimed that he and the respondent had entered into a partnership to conduct business in mines and minerals and that the said partnership was wound up and the parties had settled the case in terms of which the petitioner was liable to pay a sum of Rs.3,50,000.00 and towards the same, he had passed on the cheque in question to the respondent. He claimed that he could not pay the said amount and hence, entered into a settlement, in terms of which, the respondent was permitted to cut and remove silver oak trees that were raised in the land of the father of the petitioner.