SURANA SECURITIES LTD Vs. G KAMALAKAR

JUDGEMENT

(1.) THE instant appeal is directed against the order of acquittal passed by the learned xviii Metropolitan Magistrate, Hyderabad, by his judgment dated 30th October, 2001 in c. C. No. 18of2000.

(2.) THE unsuccessful complainant which is a private limited company is the appellant. It filed the complaint under Section 138 of the negotiable Instruments Act (for short, the act' ). The complainant's case in nutshell is thus:

(3.) THE complainant is a member of the national Stock Exchange of India and a registered broker carrying on business in shares and securities. The accused was a client of the complainant company and used to trade in shares. In the process, he became liable to pay an amount of Rs. 7,21,174. 47 ps. The accused after verifying his accounts with the complainant, admitted and acknowledged the liability and in discharge of the said liability issued six cheques, each for Rs. 1, 00,000/-and another cheque for Rs. 1, 21,174. 47 ps, drawn on Andhra Bank on different dates as detailed in his letter dated 19. 2. 97 addressed to the complainant. When the first six cheques were presented for encashment wit the complainant's bank on 18. 9. 97, they were dishonoured with an endorsement as 'funds insufficient' on the same date. The complainant upon receiving the said information under a memo dated 19. 9. 97f rom the bank got a legal notice dated 23-09-1997 issued to the accused calling upon him to pay the amounts covered by the dishonoured cheques. After having received the said notice, the accused failed to pay the amount. The Board of Directors of the complainant company by its resolution authorized its Managing Directorto appoint an agenttorepresentthecomplainant. Pursuant thereto, one, V. Shanker Prasad was appointed as an agent by executing a General Power of attorney. Later, he was substituted by one, ravinder Singh underanothergeneral Power of Attorney.