RAMACHANDRAN NAIR Vs. JAMES

JUDGEMENT

(1.) This appeal is preferred against the judgment passed by the II Addl.District Judge, Kollam in Crl.A. No. 214 of 1998. It is the case of the complainant that the accused had borrowed a sum of Rs. 55,000/- from him and had issued a cheque towards the discharge of liability which when presented for encashment, returned with the endorsement 'insufficiency of funds'. It is the case that the cheque was presented firstly on 12.5.1995, secondly on 18.7.1995 and lastly on 1.11.1995. According to the complainant, when the cheque was returned for insufficiency of funds, on 1.11.1995 statutory notice was issued and action was initiated.

(2.) In the trial court, Pws 1 to 3 were examined and Exts.P1 to P6 were marked. The trial court found the accused guilty under Section 138 of the Negotiable Instruments Act and sentenced to undergo simple imprisonment for a period of one year and to pay a fine of Rs. 3,000/- with default sentence of 3 months.

(3.) Against the said conviction and sentence, the accused preferred Crl.A. No. 214 of 1998. The appellate court came to the conclusion that the cause of action to initiate the prosecution has started immediately after the issuance of the first notice and therefore the initiation of action, which according to the lower appellate court is after the 3rd notice is illegal and therefore prosecution will not lie.