S. DURAISAMY Vs. R. SHANMUGAM

JUDGEMENT

(1.) THE complainant in C.C.No. 192 of 2005 on the file of the Judicial Magistrate - V, Coimbatore is the appellant. The appellant filed the above complaint under Section 138 of the Negotiable Instruments Act against the respondent and the learned Judicial Magistrate dismissed the complaint and acquitted the respondent and aggrieved by the same, this Appeal is filed.

(2.) THE case of the appellant/complainant is that the respondent was running a chit fund and he was a member and the respondent was having money transaction with him and in July 2003, the respondent borrowed a sum of Rs.2,00,000/ - and on 1.9.2003, another sum of Rs.2,00,000/ - from him and agreed to repay the said amount with interest at the rate of Rs.2/ - per month and was paying interest for some time and thereafter neither repaid the principal nor the interest and after demand, he issued four post - dated cheques each for Rs.1,00,000/ - and 2 cheques were drawn on State Bank of India and 2 cheques were drawn on Indian Overseas Bank. When these two cheques were presented for collection, all the four cheques were returned with an endorsement "insufficient funds" and thereafter, notice was issued on 4.11.2004 and the notice was returned as "refused" and therefore, the complaint was filed.

(3.) BEFORE the trial Court, the respondent pleaded discharge of the amount payable by him by marking Ex.D.3 and to prove the discharge, he examined DW.3 and DW.4 and the trial Court believed the evidence of DW.3 and DW.4 and held that through Ex.D.3 and evidence of DW.3 and DW.4, the respondent proved that the amount was discharged and therefore, the respondent is liable to be acquitted and acquitted the respondent.