P ARUMUGAM Vs. MURTHY

JUDGEMENT

(1.) This criminal appeal has been filed against the judgment rendered by the Additional District cum Sessions Judge (Fast Track Court) Vellore in C.A.No.151 of 2008 dated 01.07.2009, wherein, the conviction and sentence awarded to the respondent by the Judicial Magistrate No.V, Vellore, was reversed.

(2.) The case of the prosecution is as follows:- P.W.1 Velmurugan is the power of attorney to the complainant Arumugam. It appears from the complaint of the Arumugam that the respondent had borrowed a sum of Rs.1,50,000/- and agreed to repay the same with 24% per annum. For which, a promissory note had been executed by the respondent on 02.10.2003. In order to repay the said loan, on 29.03.2004, the respondent had issued a cheque for Rs.1,50,000/- drawn on Tamil Nadu Mercentile Bank, under Ex.P2. The complainant had presented the said cheque for encashment in Indian Bank at Sathuvachari on 31.03.2004. On 06.04.2004, the cheque was returned unpaid with return memo (Ex.P3) by saying the reason that "funds insufficient".

(3.) After receiving the return memo, the appellant had issued a statutory notice on 08.04.2004 under Ex.P5 through registered post and through the certificate of posting. The said statutory notice was returned with an endorsement "unclaimed" and the same has been marked in the Trial Court as Ex.P7. Even after knowing the sending of statutory notice, the respondent had not repaid the loan amount. According to the appellant, the respondent had issued a cheque without arranging sufficient funds in his account which constitutes the offence under Section 138 of the Negotiable Instruments Act.