TIMMAPPA Vs. M H HUCHHU HANUMAIAH

JUDGEMENT

(1.) THE learned Trial Judge has acquitted the accused of an offence punishable under Section 138 of Negotiable Instruments Act. Therefore, complainant is before this Court.

(2.) I have heard Sri Dinesh, learned counsel for complainant and Sri Vijaykumar, learned counsel for accused.

(3.) THE averments of the complaint would reveal that in the year 2004, accused was in need of money. Therefore, he approached the complainant. The complainant mortgaged his properties in favour of DCC Bank of Singatagere and raised loan of Rs3,50,000/ -. The complainant gave a sum of Rs.2,50,000/ - to accused with an understanding that accused shall discharge the loan and redeem the properties of the complainant mortgaged to the bank. The accused did not stand by his words. Therefore, complainant contacted the accused. The complainant on one side, the accused, his wife and his children represented by accused entered into an agreement on 18.7.2005, wherein the accused, his wife and children represented by the accused (father being guardian) agreed to discharge loan in favour of bank and agreed to repay the loan and upto date interest to the bank and get the properties redeemed. The accused did not stand by his words. Therefore, complainant and accused again entered into an agreement on 18.3.2006, wherein accused agreed to pay entire loan of Rs.2,50,000/ - and the accrued interest to the bank. It is also said in the agreement that in case if accused fails to repay loan amount and upto date interest to the bank, the complainant was at liberty to take any action against the accused. The complainant was also given right to sell the properties belonging accused and appropriate the sale consideration towards the loan amount. On 31.12.2006, accused issued a cheque in favour of the complainant for a sum of Rs.3,53,664/ - being the principal amount of Rs.2,50,000/ - and interest accrued thereon. The cheque was drawn on Chikmagalur Kodagu Grameena Bank, Kadur. On presentation, the cheque was dishonoured for want of sufficient funds. Thereafter, the complaint was initiated.