ALUMU CHITS PVT LTD Vs. R PONNUSAMY

JUDGEMENT

(1.) THE appeal arises out of the Judgment of acquittal dated 14.11.2003 made in C.C.No.245 of 2002 on the file of the learned Judicial Magistrate-III, Coimbatore.

(2.) THE appellant as a complainant filed a private complaint under Section 138 of the Negotiable Instruments Act stating that the appellant is a private company conducting chits, under the name and style of M/s.Sri Alumu Chits Pvt. Ltd., registered under the Companies Act. The respondent/accused was one of the subscribers of the Chit. On 05.07.1995, he had taken the chit amount and issued Ex.P1-Cheque for Rs.50,000/- drawn at Union Bank of India, Gandhipuram, Coimbatore. The appellant presented the Cheque for encashment on 07.07.1995 before Lakshmi Vilas Bank, Uplipalayam Branch, and the same was dishonoured and returned with memo under Ex.P2, indicating as 'Insufficient Funds' on 08.07.1995. Hence, Ex.P4-statutory notice dated 15.07.2005 was sent to the respondent/accused by Certificate of Posting on 17.07.1995, which was retuned on 26.07.1995 under Ex.P5. But, the respondent neither repaid the amount nor sent any reply. The respondent, with a malafide intention, after knowing fully well that there was no sufficient funds in his account, issued Ex.P1-cheque and thereby, he committed offence under Section 138 of the Negotiable Instruments Act.

(3.) THE learned counsel for the appellant submitted that P.W.1-complainant is a competent person to file a complaint and the said factum has not been considered by the trial Court. Since the issuance of cheque is admitted, the complainant is entitled to invoke the presumption under Sections 118 and 139 of the Negotiable Instruments Act. He further submitted that the trial Court has committed an error in dismissing the complaint and acquitted the accused. Hence, he prayed for allowing this appeal.