B V RANGAM Vs. B GOVINDA REDDY

JUDGEMENT

(1.) This appeal is filed being aggrieved by the Judgment dated 19-1-1998 in C.C.No.364 of 1996 on the file of the Court of V Metropolitan Magistrate, Hyderabad wherein the respondent-accused was acquitted under Section 255(1) of Cr.P.C., for the offence under Section 138 of the Negotiable Instruments Act,1881 (for short 'the Act').

(2.) The case of the complainant was that he purchased a flat at Yellareddyguda from the accused i.e., Managing Director of M/s.Bhavanam Estates Private Limited and paid a sum of Rs.3,15,000/- towards sale consideration. The accused neither fulfilled the agreement nor returned the amount and thereby he was constrained to file a criminal complaint, which was registered as Cr.No.328/95 of Banjara Hills Police Station, Hyderabad under Section 420 IPC and also moved a petition before the State Consumers' Forum claiming compensation for Rs.6.00 lakhs.

(3.) Thereafter, the accused approached him for compromise and accordingly, the matter was compromised pending the said criminal proceedings and the accused agreed to pay the amount in instalments and accordingly, issued four cheques, i.e. three cheques for Rs.75,000/- each, which were encashed, and another cheque bearing No.959950dated 8-3-1996 for Rs.25,000/-, which was dishonoured on the ground of insufficient funds. However, at the instance of the accused, the said cheque was presented for the second time and it was dishonoured on the same ground and thereby, he was constrained to issue Ex.P3-legal notice dated 22-3-1996 calling upon the accused to pay the cheque amount. In spite of receiving the legal notice, the accused neither paid the amount nor given any reply. Hence, the complaint.