TEJA BENEFIT FUND LTD Vs. C DAYANANDA RAO

JUDGEMENT

(1.) This appeal is directed against the Judgment of 5th Metropolitan Magistrate, Hyderabad in C.C.No.261 of 1996 dated 1.5.2000 whereby the 1st respondent-accused was acquitted of the offence punishable under Section 138 of the Negotiable Instruments Act.

(2.) The appellant-company filed the above complaint under Section 138 of the Negotiable Instruments Act (for short 'the Act') stating that the company used to facilitate the members of the company to save money and advance loans to the members. Accused who is a member of the company raised loan of Rs.90,000/- from the appellant-company under Loan Account No.OL160 undertaking to repay the same with interest. The accused issued a cheque dated 11.12.1995 (Ex.P.6) for a sum of Rs.10,000/- towards part payment of the loan, but when the cheque was presented, it was dishonoured for 'insufficient funds' on 20.12.1995. The appellant, therefore, got issued a legal notice on 26.12.1995, but in spite of receipt of notice on 4.1.1996, the accused neither paid the amount nor gave any reply.

(3.) In order to prove the guilt of the accused, P.W.1 was examined on behalf of the company and P.Ws.2 and 3 who are the managers of the bank were examined and Exs.P.1 to P.11 were marked. No oral or documentary evidence was let in on behalf of the respondents.