H RAJAGOPAL Vs. D C MEHTA

JUDGEMENT

(1.) Aggrieved by the judgment dated 13-4-1998 passed in C.C. No. 205 of 1997 on the file of the VI Metropolitan Magistrate for Railways, Visakhapatnam acquitting the sole accused respondent for the offence punishable under Section 138 of the Negotiable Instruments Act (for short 'the Act'), the unsuccessful complainant filed the present appeal.

(2.) The brief facts of the case are that the appellant was doing transport business and also a social worker and he knows the accused in connection with his business. The appellant has lent a sum of Rs. 5,17,700 to the accused and in discharge of the said loan; the respondent issued a cheque for Rs. 5,16,700 dated 25-8-1992 drawn on Andhra Bank, Pittapuram Colony branch. The appellant presented the said cheque for encashment in the Bank of India on 7-9-1992 in which he was having an account and his banker sent the cheque to the Andhra Bank, but the same was returned with an endorsement "funds insufficient" and thereupon the appellant got issued a legal notice dated 11-9-1992 demanding the respondent to pay the cheque amount within 15 days from the date of receipt of the notice and after receiving the notice, the accused sent a reply dated 16-9-1992 stating that he did not issue the cheque for the said amount of Rs. 5,16,700. Hence, the accused is liable for the offence punishable under Section 138 of the Negotiable Instruments Act.

(3.) On a consideration of the entire oral and documentary evidence, the court below refused to accept the evidence of the appellant and accordingly; while dismissing the complaint, acquitted the respondent of the offence punishable under Section 138 of the Act.