S. SELVARAJ Vs. M. ARUMUGAM

JUDGEMENT

(1.) This criminal revision has been filed seeking to set aside the judgment and order dated 13.11.2007 passed in C.C.No.42 of 2005 on the file of the Judicial Magistrate Court No.V, Coimbatore, confirmed by the judgment and order dated 23.07.2013 passed in C.A.No.528 of 2007 on the file of the IV Additional District and Sessions Court, Coimbatore.

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

(3.) It is the case of the complainant that the accused borrowed a sum of Rs.1,00,000/- on 12.01.2004 along with his wife Devi Lakshmi, who jointly executed a promissory note (Ex-P1) agreeing to repay the amount with interest of 18% per annum; since the accused did not pay any interest, the complainant negotiated with him and agreed to waive the interest component and accept the principal amount as full and final settlement; in discharge of the debt, the accused issued a cheque (Ex-P2) dated 15.10.2004 for a sum of Rs.1,00,000/-; the complainant presented the said cheque (Ex-P2) on 19.10.2004 and it was returned unpaid with the endorsement "Funds Insufficient" vide bank's return memo (Ex-P3) dated 20.10.2004; therefore, the complainant issued a statutory demand notice (Ex-P4) dated 27.10.2004 and the accused sent a reply notice (Ex-P7) dated 09.11.2004 disputing the liability; since the accused did not comply with the demand, the complainant initiated a prosecution in C.C.No.42 of 2005 before the Judicial Magistrate No.V, Coimbatore, for the offence under Section 138 of the Negotiable Instruments Act, 1881 (for brevity "the NI Act "), against the accused.