M/S AJAYA INDUSTRIES Vs. GULSHAN RAI MALHOTRA

JUDGEMENT

(1.) M/s. Ajaya Industries has filed this appeal against respondent Gulshan Rai Malhotra, against the judgment of acquittal dated 4.12.199 passed by Judicial Magistrate 1st Class, Ludhiana, vide which complaint filed under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter referred to as 'the Act) has been dismissed. The brief facts of the prosecution case are that the complainant-appellant has filed complaint under Section 138 of the Act against accused/respondent Gulshan Rai Malhotra alleging that the complainant-firm M/s. Ajaya Industries, Ludhiana is doing the business of manufacturing of all kinds of oil machinery and spare parts and Ajay Kumar is one of its partners. The accused/respondent had been purchasing goods from the complainant from time to time through bills and on 7.2.1995, the accused made the payment of Rs. 52,406.25 in favour of the complainant-firm through cheque No. 806883 dated 7.2.1995 amounting to Rs. 52,406.25 drawn on State Bank of India, Miller Ganj, Ludhiana. The complainant presented the said cheque for encashment through its bankers State Bank of India, Miller Ganj, Ludhiana, but the same was returned unpaid by the Bank with the remarks "insufficient funds". The complainant brought this to the notice of the accused, who apologized for the same and requested the complainant to present the cheque again in the Bank for encashment and assured that he would make necessary arrangements for the funds, so that the cheque is cleared. Again, the complainant presented the said cheque to his bankers for collection, but the same was again returned unpaid to the complainant by its bankers on 28.2.1995 with the remarks "insufficient funds". Thereafter, the complainant served a legal notice dated 3.3.1995 upon the accused, but the same was also returned with remarks "refused". It was alleged that the accused had thus committed offence under Section 138 of the Act and that he should be summoned, tried and punished according to law.

(2.) After appreciating preliminary evidence of the complainant, the accused was ordered to be summoned to face trial under Section 138 of the Act.

(3.) On appearance of the accused, he was served with notice under Section 138 of the Act, to which he pleaded not guilty and claimed trial. Consequently, the complainant was directed to produce his evidence after notice.