TAHER N KHAMBATI Vs. VINAYAK ENTERPRISES

JUDGEMENT

(1.) This is an appeal filed by the complainant in C.C. No. 286/91 on the file of XI Metropolitan Magistrate, Secunderabad acquitting respondents 1 and 2 of offence under Section 138 of the Negotiable Instruments Act.

(2.) The case of the appellant as disclosed from the complaint filed by him is in brief as follows : The respondents 1 and 2 borrowed a sum of Rs. 1,00,000.00 from the appellant for purpose of their business, promising to repay the same within a short time. Respondents 1 and 2 became liable in a sum of Rs. 1,18,337/- in respect of the said transaction and issued a cheque drawn on 'Karur Vysya Bank, Rastrapathi Road, Secunderabad for the said amount with an understanding to present the said cheque on 15-1-91.

(3.) The appellant-complainant presented said the cheque on 15-1-91, but it was returned for want of sufficient funds. The appellant then contacted the respondents on telephone and demanded for payment of the amount for which the cheque was issued. Then the respondents promised to arrange for payment in a short time. So, the appellant waited for two months and again presented the cheque for encashment on 19-3-91, but it was again returned for want of sufficient funds. The Appellant then sent a notice Dt. 27-3-91 calling upon the respondents to pay the amount within 15 days and threatening to prefer a complaint in the event of their failure to pay the amount within that time. The said notice was received by the respondents-accused and a reply was sent on 11-4-91 raising some pleas which are extraneous and irrelevant and admitting the liability. Hence, the complaint for offence under section 138 of the Negotiable Instruments Act (hereinafter referred to as 'the Act').