PREM LAL Vs. STATE OF HIMACHAL PRADESH

JUDGEMENT

(1.) Respondent No.2 (complainant before learned Trial Court) filed a complaint (Annexure P-2) against the petitioner (accused before learned Trial Court) for the commission of an offence punishable under Ss. 138 of the Negotiable Instruments Act (in short 'NI Act'). (Parties shall hereinafter be referred to in the same manner as they were referred before the learned Trial Court for convenience).

(2.) It was asserted that the complainant bank is a Corporate Body constituted under the Regional Rural Bank Act, 1976 having its Head Office at Jawahar Nagar, District Mandi, H.P. It carries out banking business throughout Himachal Pradesh and has one branch office situated at main market Tehsil Sadar, District Bilaspur, H.P. The complainant sanctioned cash credit limit facility of ? 5,00,000/- for running the business of Auto Bulb on 30/7/2008 in favour of Achharlata Rao, wife of the accused. The accused stood as guarantor for the repayment of the loan. The borrower and the accused executed documents in favour of the bank on 30/7/2008. The amount was to be paid annually with interest @14.5% per annum subject to variation as per the RBI guidelines from time to time. The borrower defaulted on the repayment of the loan. The borrower and guarantor issued a cheque for ? 7,57,000/-for discharging their liabilities. The cheque was presented before the bank but it was returned with the remarks 'insufficient funds'. The bank sent a notice demanding the payment of the money; however, the money was not paid. Hence, the complaint was filed to take action against the accused.

(3.) Learned Trial Court found sufficient reasons to summon the accused.