M PALANISAMY Vs. S MALINI

JUDGEMENT

(1.) This appeal arises against the judgment in C.A.No.58 of 2007 dated 22.08.2007 passed by the Court of the Additional Sessions Judge and Presiding Officer, Special Court for E.C Act cases, Coimbatore, reversing the judgment passed in C.C.No.598 of 2004 on the file of the Judicial Magistrate No.II, Coimbatore, dated 01.02.2009.

(2.) It is the case of the appellant is that the respondent borrowed a sum of Rs. 1,50,000/- on 20.03.2003 and executed a pronote for the said amount agreeing to repay the same with interest at 24% per annum. The respondent/accused paid interest upto 20.06.2003 and thereafter, inspite of several demands, the respondent did not repay the loan amount. In order to discharge his liability, the respondent/accused issued a cheque bearing No.084121 dated 03.09.2003 drawn on Central Bank of India, Coimbatore when the same was presented for encashment in Dhanalakshmi Bank, Gandhipuram by the appellant, the said cheque was dishonoured and returned on 04.09.2003 with an endorsement "insufficient funds". Therefore, he sent a legal notice to the respondent on 08.09.2003 and the respondent acknowledged the notice on 09.09.2003 and sent a reply with false allegations on 16.09.2003. The cause of action arose on 23.08.2003 on which date the amount has to be repaid and as such, the loan was not repaid by the respondent, the appellant complying with the mandates of section 138 of Negotiable Instruments Act, filed the complaint before the trial Court.

(3.) During trial, on the side of the appellant, the appellant himself was examined as PW.1 and Exs.P1 to P6 were marked. On the side of the respondent/accused, DW.1 and DW.2 were examined and Exs.D1 to D4 documents were marked. After completing trial the trial Court convicted the accused under Section 138 of Negotiable Instruments Act.