LAILA FINANCE LTD Vs. S A ENGINEERING SERVICES

JUDGEMENT

(1.) This criminal appeal is filed by M/s Laila Finance Ltd, Panjagutta, Hyderabad against the judgment dated 17.04.2006 passed by the XIV Additional Chief Metropolitan Magistrate, Hyderabad, in C.C. No. 1294 of 2001 acquitting the respondents/accused for the offence under Section 138 of the Negotiable Instruments Act.

(2.) The brief facts necessary for considering the appeal may be stated as follows:

(3.) Mr Mohd. Akber entered into hire purchase agreement on behalf of M/s National Business Trust with the appellant company, during his life time, he paid two instalments due under the agreement and having failed to pay the remaining instalments, an amount of Rs. 14,30,000/-became due. It is the version of the appellant that after the death of Mr Mohd. Akber having come to know that the second respondent Saleema Begum succeeded to his properties and also became the proprietrix of M/s National Business Trust, approached her on 28.08.000 requested to pay the amount of Rs. 14,30,000/-. Pursuant to the request made by the representative of the appellant, the second respondent gave a written undertaking agreeing to pay the dues payable by National Business Trust. However, she failed to pay the amount and when the representative of the appellant approached her on 02.09.2001 and demanded payment of the amount, respondent No. 2/A2 in the capacity of proprietrix of A1 agreed to discharge the liability of National Business Trust and issued a cheque for an amount of Rs. 14,30,000/-towards full and final settlement of the amount due under the hire purchase agreement vide cheque bearing No. 553575, dated 03.09.2001 drawn on State Bank of India, IFB Branch, Vijayawada in favour of the appellant. Thereafter, the appellant presented the cheque for encashment in its bank - State Bank of India, IFB Branch, Somajiguda, Hyderabad but the said cheque was dishonoured with an endorsement funds insufficient vide memo dated 10.09.2001. Thereafter, the appellant got issued a legal notice dated 25.09.2001 which was served on the second respondent, but was returned with an endorsement refused dated 01.10.2001. The respondent No. 2 did not issue any reply notice nor did she make the payment of the cheque amount. On that, the appellant filed the complaint before the learned Magistrate under Section 138 of the Negotiable Instruments Act.