FINFREE CONSULTANTS (P) LTD. AND OTHERS Vs. STATE OF KERALA REPRESENTED BY THE PUBLIC PROSECUTOR, HIGH COURT OF KERALA AND ANOTHER

JUDGEMENT

(1.) The revision petitioners were convicted and sentenced by the courts below under section 138 of the Negotiable Instruments Act (in short, 'the N.I.Act').

(2.) The contention of the complainant is that the accused and the complainant had business transaction and they decided to stop the business transaction. Accordingly, on 25.04.2010, the accused issued Exts.P2 and P3 cheques in favour of the complainant.

(3.) Ext.P2 cheque was for Rs. 2 lakh and Ext.P3 cheque was for Rs. 1 lakh. The complainant had deposited an amount of Rs. 3 lakh with the accused as security and the above said cheques were issued towards the discharge of the said security amount of Rs. 3 lakh.