M CHANDRASHEKAR RAO Vs. KUTAMBA RAO

JUDGEMENT

(1.) This is an appeal filed against the acquittal recorded by the V Matropolitan Magistrate, Hyderabad in C.C. No. 737 of 1999, dated 13-1-2004 acquitting the respondent-accused.

(2.) The appellant herein is the complainant and the first respondent herein is the accused in C.C. No. 737 of 1999 and therefore they will be referred hereinafter in this judgment as appellant and accused respectively.

(3.) The relevant facts in brief are as follows : The complainant filed complaint before the V Matropolitan Magistrate, Hyderabad against the accused alleging that the accused was running Chit Fund Company in the name of Swapna Chits and Finance Private Limited at Ameerpet. Hyderabad in the name of his brother Sri V. Satyanarayana who is the Executive Director and one G. S. Reddy was the Managing Director and at the instance of the accused, the complainant joined as subscriber in various chits and when chit amounts were due in the above chits the accused took those amounts and further the accused also borrowed an amount of Rs. 2 lakhs in cash from the complainant and thus the accused took a loan of Rs. 3 lakhs from the complainant and executed two promissory notes dated 15-8-1999 for Rs. 3 lakhs each promising to repay the same with interest at 24% per annum. When the complainant demanded the accused for repayment, the accused gave five post dated cheques on his banker Prudential Co-operative Bank Limited, Ameerpet, Hyderabad towards part payment and the said cheques are bearing No. 7242752 for Rs. 38,250/-, 7242753 for Rs. 37,800/-, 7242754 for Rs. 37,350/-, 7242755 for Rs. 36,900/- and 7242756 for Rs. 36,450/-. Thus, for a total amount of Rs. 1,86,750/- five post dated cheques were issued. The complainant presented all the five cheques in his banker, Kanyakaparameswari Bank, Kukatpally, Hyderabad on 8-9-1999 for realization of the said amount. But, the said cheques were returned unpaid by the banker vide memo dated 9-9-1999 with an endorsement 'insufficient funds'. Thereafter, the same was informed to the omplainant by his banker vide letter dated 15-9-1999. On receipt of the information about the dishonour of cheques, the complainant got issued a legal notice dated 27-9-1999 to the accused demanding to repay the amount due under the cheques and served the same on the accused on 8-10-1999 personally. In spite of service of notice, the accused failed to make payment of the amounts due under the cheques and thereby the accused rendered himself liable for punishment under Section 138 of the Negotiable Instruments Act.