K N KUNDASAMY GOUNDER Vs. P DHAMODHARAN

JUDGEMENT

(1.) The Petitioner, who is arrayed as the accused in CC. No. 176 of 2006 on the file of the learned Judicial Magistrate I, Pollachi, Coimbatore, has filed this Criminal Original Petition to quash the said proceedings.

(2.) The brief facts, which are essential for the disposal of this Criminal Original Petition, are as follows:- The Petitioner had borrowed a loan of Rs. 2,90,000/- from the Respondent on 2.9.2003 and he is said to have executed a promissory note, promising to repay the loan amount with interest at 18% p.a. Since he failed to repay the amount, the Respondent is said to have approached him for repayment and it is stated that towards discharge of the loan amount, the Petitioner had issued a cheque bearing No. 383534 for a sum of Rs. 3,12,500/- drawn on Syndicate Bank.

(3.) When the said cheque was presented for encashment with the Respondent Bankers namely Karur Vysya Bank on 10.2.2004, the same was returned with an endorsement "funds insufficient" on the same day. The Respondent is said to have approached the Petitioner and demanded the Petitioner to pay the cheque amount on several occasions, but he did not pay the cheque amount and hence, the Respondent had issued a statutory notice on 11.2.2004 through his lawyer, intimating the Petitioner that the cheque had been returned with an endorsement "funds insufficient". It is alleged in the complaint that notice had been returned as refused on 19.2.2004. Thereafter, the Respondent has filed the private complaint under Section 138 of the Negotiable Instruments Act before the Judicial Magistrate, Udumalpet and the same had been transferred at the instance of the Respondent to the Judicial Magistrate I, Pollachi.