LAKSHMI FINANCIERS Vs. DAMODARAN

JUDGEMENT

(1.) The order of acquittal dated 29-03-2006, passed in C.C.No.50 of 2000 by the Judicial Magistrate No.III, Coimbatore is being challenged in the present criminal appeal.

(2.) The appellant herein, as complainant has filed a complaint under Section 138 of the Negotiable Instruments Act, 1881 ('the Act' in short), wherein the present respondent has been shown as a sole accused.

(3.) It is averred in the petition that on 07-07-1994, the accused has received a sum of Rs.4,00,000/- by way of debt from the complainant and to that extent, on the same day, an agreement has come into existence. It is agreed by the accused to discharge his liability in ten instalments. But the accused has not discharged his entire liability and for the purpose of discharging remaining amount of Rs.1,29,712/- (Rupees One lakh twenty nine thousand seven hundred and twelve only), he issued a cheque on 24-07-1997, in favour of the complainant and the same has been presented in the Bank. But the concerned bank has returned the same stating "funds insufficient" and subsequently, on 16-08-1997, a legal notice has been given to the accused and after receipt of the same, he has given a reply notice on 02-09-1997. Since the accused has not discharged his liability even after issuance of statutory notice, he committed an offence punishable under Sections 138 read with 142 of the Act. Under the said circumstances, the present complaint has been filed for getting the relief sought for therein.