VALLINAYAGAM Vs. P. ARUMUGAM

JUDGEMENT

(1.) This Criminal Revision has been preferred challenging the judgment and order dated 12. 08. 2013 passed by the IV Additional Sessions Judge, Chennai in C. A. No. 50 of 2011 confirming the judgment and order dated 11. 02. 2011 passed by the VII Metropolitan Magistrate, George Town, Chennai in C. C. No. 12384 of 2006.

(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 was his neighbour and thus, got acquainted with him; the accused borrowed Rs. 50,000/- as hand loan on 26. 11. 2005 and promised to return the same in a short time; when the complainant started demanding repayment of the amount, the accused gave two cheques viz. cheque No. 371798 dated 30. 06. 2006 for Rs. 25,000/- (Ex. P2) and cheque No. 371797 dated 25. 07. 2006 for Rs. 25,000/- (Ex. P3), both drawn on Canara Bank, Nerkundram Branch; when the complainant presented the first cheque (Ex. P2) dated 30. 06. 2006 on 04.07. 2006 in Central Bank of India, Mogappair Branch, it was dishonoured on 05.07. 2006 on the ground "funds insufficient"; the complainant contacted the accused and informed him about the dishonour, for which, the accused requested the complainant to present both the cheques on 25. 07. 2006 and that, he would make arrangements for their clearance; accordingly, the complainant presented both the cheques on 25. 07. 2006 and they were returned unpaid with the endorsements "funds insufficient" vide return memo (Ex. P4); the complainant issued a statutory demand notice dated 18. 07. 2006 (Ex. P6), for which, the accused issued a reply notice dated 24. 08. 2006 (Ex. P8) repudiating the debt. Therefore, the complainant initiated a prosecution in C. C. No. 12384 of 2006 before the VII Metropolitan Magistrate, George Town, Chennai for the offence under Section 138 of the Negotiable Instruments Act, 1881 (for brevity "the NI Act ") against the accused.