GENERAL AUTO SALES Vs. VIJAYALAKSHMI D PROPRIETRY

JUDGEMENT

(1.) THE appellant initiated prosecution for the offence punishable under Section 138 of the Negotiable Instruments Act against the respondent. The respondent was acquitted. Therefore this appeal.

(2.) ACCORDING to the complainant he is a dealer in two wheelers manufactured by Bajaj. Accused was also a dealer in another place. There was business dealing between the two. The complainant had given vehicles for sale to the accused. The accused committed default in repayment. On 1-3-1995 there was a settlement of account between the two. There upon the accused drew a cheque for an amount of Rs.7,97,918.95 towards the amount due as found at the time of settlement. The cheque was presented to the bankers. It bounced. Statutory notice was issued. There was no response. Hence prosecution was initiated.

(3.) IT is contended by the appellant that the contention of the accused that the cheque was issued only as a security is no longer available in the light of the decision reported in I.C.D.S. Ltd. v. Been Shabeer (2002 (3) KLT218). It is further submitted that Ext. P10 ledger folio as noted by the court below disclosed that large amounts were due from the accused. When there was a settlement of account settlement need not be recorded in the folio unless the amount is received in cash and the transaction is closed. There was no such situation in this case. Therefore, Ext. P10 was sufficient enough to conclude that Ext. PI cheque was issued in lieu of the liability due from the accused.