V RAMA SHETTY Vs. N SASIDARAN NAYAR

JUDGEMENT

(1.) THE respondent accused is prosecuted for the offence under S. 138 of the Negotiable Instruments Act. The accused issued a cheque for Rs. 74,000. 00 dated 16/3/1998 and another cheque for Rs. 79,600. 00 dated 13/3/1998 both drawn on vijaya Bank towards discharge of the loan. On first presentation, the cheques are dishonoured. Bank intimations are marked as Exs. P3 and P4. On the second occasion, both the cheques were presented together for collection. Ex. P8 is the bank Intimation of dishonour dated 5/8/1998. Statutory notice is issued on 19/8/1998 by registered post which was received on 24/8/1998. The complaint, was presented on 22/9/1998.

(2.) PER contra, the accused contends that he has not borrowed Rs. 1,53,600/- at all; he had borrowed only Rs. 25,000/- and the complainant had collected two blank signed cheques as security. The loan of Rs. 25,000/-is discharged in full. The complainant has dishonestly fabricated the two cheques as exs. P1 and P2 to launch false prosecution. The accused also got summoned bank account extract of the complainant to show that when the loan of Rs. 25,000/- was paid by way of cheque, the cheque was not honoured since there were no sufficient funds; the complainant arranged the funds and got the cheque Ex. P. 3 passed. The accused has also produced Ex. D1 dated 25-5-1998, receipt for receiving Rs. 9,350/ -. The complainant admits the contents of ex. D1, but contends that the loan of Rs. 25,000/- is distinct from the loan granted under Exs. P1 and P2.

(3.) ON a close perusal, Ex. P1 dated 16-3-1998 is a self-drawn cheque, not a cheque issued in favour of the complainant. The provisions of Section 138, negotiable Instruments Act for convenient reference is extracted hereunder :