G N RAJU Vs. B S JAIPRAKASH

JUDGEMENT

(1.) THIS appeal is filed challenging the acquittal of the accused in proceedings filed for prosecuting the respondent for an offence punishable under S. 138 of Negotiable Instruments Act.

(2.) ACCORDING to the complainant-appellant when the accused persons approached the complainant for advancement of loan, a sum of Rs. 5,50,000/- was advanced and in repayment of the said amount a cheque dated 5-12-1997 for Rs. 5,50,000/- was drawn on Syndicate Bank, Seshadripuram branch in favour of the complainant towards the discharge of the whole debt. As the said cheque was dishonoured for insufficient funds as per the bank endorsement after issuing mandatory notice dated 25-3-1998 the complainant launched the prosecution when the accused failed to pay the amount under the cheque.

(3.) THE respondent/accused appeared and contested the matter. The defence of the accused was there was a sale transaction pertaining to the landed properly between the complainant and one Krishnamurthy and the said deal got frustrated. Therefore, this cheque came to be issued as a security as the said sale transaction of the land was entered into between the complainant and the said Krishnamurthy at the instance of the accused persons. Therefore, the said cheque was neither issued towards legally recoverable debt or any other liability as such. They also produced certain documents ex. D1 to D3 in support of their evidence.