MAHESHBALA FILMS Vs. P.S.K.GANAPATHI

JUDGEMENT

(1.) This criminal revision has been filed seeking to set aside the judgment and order dated 29.04.2008 passed in C.C.No.317 of 2005 on the file of the Judicial Magistrate Court No.II, Namakkal, confirmed by the judgment and order dated 30.08.2011 passed in C.A.No.19 of 2008 on the file of the Principal District and Sessions Court, Namakkal.

(2.) For the sake of convenience, the petitioners and the respondent will be referred to as accused and complainant, respectively.

(3.) It is the case of the complainant that on 21.10.2004, the accused borrowed a sum of Rs.10,00,000/- for his business purpose and also executed a promissory note agreeing to repay the amount with interest, on demand; when the complainant demanded repayment of the amount, the accused issued a cheque (Ex-P1) dated 16.06.2005 for a sum of Rs.10,00,000/- drawn on Central Bank of India, Salem Branch, from the account of Maheshbala Films (A1) and the impugned cheque (Ex-P1) has been signed by Balu (A2) in the capacity as a partner of Maheshbala Films; the complainant presented the cheque (Ex-P1) on 16.06.2005 in Indian Overseas Bank, where, he was having his account, but the same was returned unpaid with the endorsement "Funds Insufficient" vide bank's return memo (Ex-P2) dated 22.06.2005; therefore, the complainant issued a statutory demand notice (Ex-P4) dated 12.07.2005, which was received by both the accused on 13.07.2005 vide postal acknowledgement card (Ex-P5 series); since the accused did not comply with the demand, the complainant initiated a prosecution in C.C.No.317 of 2005 before the Judicial Magistrate No.II, Namakkal, for the offence under Section 138 of the Negotiable Instruments Act, 1881 (for brevity "the NI Act"), against the Maheshbala Films (A1) and Balu (A2).