N.C.MAHENDRA Vs. M.MALARMARAN

JUDGEMENT

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

(2.) It is a case of the complainant that the accused borrowed a sum of Rs.8,00,000.00 from him for the construction of a house on the promise and assurance that the amount would be returned to the complainant within a period of six months. In order to discharge his liability, the accused had issued a cheque bearing No.272199 dtd. 23/9/2010 for a sum of Rs.8,00,000.00 (Ex.P1), drawn on Standard Chartered Bank, Chennai, Rajaji Salai Branch in favour of the complainant and assured him that the cheque would be honoured on presentation. The complainant believing his words presented the cheque through his banker viz. HDFC Bank, Chennai, Rajaji Salai Branch on 27/9/2010, but the said cheque was dishonoured by the accused banker with an endorsement "insufficient funds" vide bank memo dtd. 28/9/2010 (Ex.P2). Therefore, the complainant issued a statutory demand notice dtd. 4/10/2010 (Ex.P3) to the accused by R.P.A.D, which was received by the accused vide postal acknowledgement card dtd. 5/10/2010 (Ex.P4); the accused despite receiving the legal notice, neither replied nor paid the cheque amount as demanded by the complainant. Therefore, the complainant initiated prosecution by way of private complaint in C.C.No.1205 of 2011 before learned Metropolitan Magistrate, Fast Track Court No.II, Egmore, for the offence under Sec. 138 of the Negotiable Instruments Act, 1881 (for brevity the NI Act) against the accused.

(3.) On appearance, the accused was questioned under Sec. 251 Cr.P.C. and he denied the accusation.