HARI CHAND Vs. INDIAN OVERSEAS BANK

JUDGEMENT

(1.) Briefly stated, facts of the case are that complainant Indian Overseas Bank having its Branch Office at Abohar, Tehsil Abohar, District Fazilka had brought a complaint under Section 138 of Negotiable Instruments Act, 1881 (hereinafter referred to as the Act) against Hari Chand son of Milawa Ram, resident of village Jandwala Meera Sangla, Tehsil and District Fazilka on the allegations that the complainant bank advanced a sum of Rs.2,95,000/- as car loan on 12.8.2008 and Rs.3 lakhs as term loan on 20.8.2008 to the accused, on accused executing all the relevant documents in favour of the complainant - bank, whereby he agreed to repay the loan amount along with interest as per schedule agreed; however, he did not stick to the repayment schedule; for discharge of his liability in part, the accused had issued a cheque No.101928 dated 20.2.2012 for a sum of Rs.5,50,000/- drawn on Indian Overseas Bank, Branch Abohar in favour of the complainant giving an assurance that on presentation, the cheque would be encashed. However, it was not so inasmuch when the cheque was presented by the complainant, it was returned uncashed on account of insufficient funds in the account of the accused. The complainant was informed in that regard by the banker of accused vide memo dated 20.2.2012. Thereafter, the complainant served a legal notice under Section 138 of the Act upon the accused calling upon him to make the payment within 15 days of receipt of notice but to no effect. Therefore, the complainant brought complaint in question before Sub-Divisional Judicial Magistrate, Abohar.

(2.) After recording of preliminary evidence, the accused was summoned to face trial for the offence under Section 138 of the Act. The accused put in appearance and was admitted to bail. Notice of accusation was served upon him, to which, he pleaded not guilty. The complainant led oral as well as documentary evidence. Thereafter, the statement of accused under Section 313 Cr.P.C. was recorded, in which all the incriminating material brought on record was put to him but he denied the same contending that he was innocent and had been falsely involved in this case. He did not led evidence in defence.

(3.) After hearing arguments, learned Sub-Divisional Judicial Magistrate, Abohar vide judgment dated 1.3.2016 convicted the accused for the offence under Section 138 of the Act and vide order of even date sentenced him to undergo rigorous imprisonment for a period of two years and to pay a fine of Rs.5,000/- and in default of making payment of fine to further undergo rigorous imprisonment for six months.