J DHANALAKSHMI Vs. SOUTH INDIAN BANK LIMITED

JUDGEMENT

(1.) The submissions made by Mr. S.N. Amarnath, learned counsel for the petitioner were heard. The petition and the papers produced along with the petition in the form of typed set of papers were also perused.

(2.) The petitioner, as correspondent of Sri Jayendra Saraswathy Vidhyalaya Matriculation Higher Secondary School, Coimbatore, Aerodrome Road, Singanallur, Coimbatore - 641 005, had issued two cheques in favour of the respondent herein in discharge of a debt/liability. The said cheques, when presented for payment, were dishonoured for insufficiency of funds and there was also no arrangement made between the drawer of the cheque and the banker for payment of the amount covered by the cheques.

(3.) According to the complainant, the petitioner is liable only as a Guarantor as it was agreed to deduct the installments for the personal loans given to the staff of the said institution. In fact after the institution of a previous case in C.C. No. 143 of 2004 against the petitioner based on another dishonoured cheque, the petitioner effected a settlement with the petitioner and issued two cheques for a total amount of Rs. 39,00,000/- (Rs. 20,00,000+ Rs. 19,00,000) towards the full and final settlement of the amount due on account of loans sanctioned to the staff members of the above said institution. Both cheques, when presented, were returned unpaid for want of funds in the account on which the cheques were drawn.