MAHINDRA HIRE PURCHASE Vs. BIRU RAM

JUDGEMENT

(1.) Biru Ram-respondent was tried by Judicial Magistrate 1st Class, Jalandhar, in a private criminal complaint instituted against him by the appellant under Section 138 of the Negotiable Instru-ments Act. Vide judgment and order dated 1.4.2003, the trial Court con-victed the accused for the said offence and sentenced him to undergo im-prisonment for a period of eleven months and to pay a fine of Rs.2000/-. In default of payment of fine, he was sentenced to undergo further impris-onment for a period of one month. Aggrieved of his conviction and sen-tence, the accused filed an appeal, which was accepted by Sessions Judge, Jalandhar vide order dated 8.2.2005. The said order had been challenged by the complainant Crl Appeal No. 2063-SBA of 2006 -2- by filing an ap-plication under Section 378(4) Cr.P.C. for special leave to appeal, which was granted on 26.9.2006 and consequently the appeal was admitted.

(2.) According to the complainant, the accused purchased truck No. HP-38-2657 under Hire Purchase agreement with the complainant and offered to repay the loan amount in monthly installments. However, he did not ad-here to the financial discipline as per the terms and conditions of Hire Pur-chase agreement dated 13.9.1996 and committed default in payment of monthly installments. In order to discharge his financial obligation, he issued cheque dated 17.5.1999 for an amount of Rs. 1,10,000/- in favour of the complainant by assuring that the same would be encashed on its presenta-tion in the bank. The cheque was, however, dishonoured by the banker of the accused with the remarks 'Not Arranged For'. The complainant, accord-ingly, served legal notice dated 17.6.1999 calling upon the accused to make payment of the amount of cheque in question within fifteen days from re-ceipt thereof but despite due service the accused willfully failed and neglected to comply with the demand. Hence, he had no other option but to file the complainant in question.

(3.) After recording preliminary evidence, the trial Court summoned the accused for the commission of offence punishable under Section 138 of the Act. Subsequent to his appearance, notice of accusation was served upon him to which he pleaded not guilty and claimed trial.