N RAJANGAN Vs. CENTURION BANK LTD

JUDGEMENT

(1.) The petitioner approaches this Court with a prayer to quash the case in S.T.C. No. 486 of 2004 on the file of the Judicial Magistrate No. III, Madurai.

(2.) The brief facts of the case are as follows: The petitioner herein is an accused and the de facto complainant is the respondent herein. The petitioner has availed a loan for a sum of Rs. 6,00,000.00 (Rupees six lakhs) to purchase lorry bearing Registration No. TN 69 E 4657 as per hypothecation agreement No. 625053 from the respondent bank. As per the schedule of payment given by the respondent herein, the petitioner has to pay a sum of Rs. 21,514.00 for 35 equally monthly instalments. With a view to discharge his liability, the petitioner had given 35 post dated cheques bearing Nos. 448001 to 448035 drawn on City Union Bank Ltd., Tuticorin to the respondent Bank.

(3.) Since the respondent bank has withheld an amount of Rs. 95,000.00 out of Rs. 6,00,000.00, the petitioner stop the payment of cheques and thereafter the respondent disbursed the balance amount of Rs. 95,000.00. The respondent contrary to the schedule of payment has tendered the cheque bearing No. 448009 dated 23/4/2001 and cheque No. 448010 dated 14/5/2001 instead of 29/5/2001. Since the petitioner was availing over draft facility in bank, the cheques were honoured even though it was tendered on prior to the actual schedule date. But, the respondent bank has forcibly taken custody of the lorry bearing No. No. TN 69 E 4657. The petitioner was not able to repay the loan amount as per the schedule.