SHANKAR LAL AGGARWAL Vs. BALRAM LUTHRA

JUDGEMENT

(1.) THIS appeal has been preferred against the judgment of the trial Court dated 29. 10. 2003 whereby the appellant was convicted under section 138 of Negotiable Instruments Act (for short, 'the Act') and order of sentence dated 1st November, 2006 whereby the applicant was sentenced to undergo SI for a term of one year and also to pay a fine of Rs. 98,625.

(2.) BRIEF facts relevant for the purpose of deciding this appeal are that the complainant/respondent issued a notice, Ex. C-10, to the appellant informing that three of his cheques, issued in favour of respondent/ complainant dated 28. 4. 2001, 5. 6. 2001 and 19. 7. 2001, got dishonoured due to 'insufficient funds'. Despite this notice, the appellant did not discharge his liability of making payment against these cheques. Thereafter, the complainant filed the complaint in the Court under Section 138 of the Act. Before the learned trial Court, the complainant took the stand that these cheques were issued by the appellant in discharge of his liability towards the loan taken by him from the complainant. The cheques got dishonoured and the appellant failed to pay the cheque amount despite the notice under section 138 of Negotiable Instruments Act.

(3.) VIDE its reply, Ex. C14, the appellant had taken the stand that the entire loan amount had been settled in the presence of gurvinder Kaur, daughter of Sh. Dalip singh, on different dates and lastly on 24. 8. 2001 and the complainant also issued valid receipts towards full and final settlement and also acknowledged receipt of gold jewellery weighing 500 gm. So there was no legal liability and the cheques were to be returned. Instead of returning these cheques, the complainant retained the same and illegally presented the same to the Bank.