SARAVJEET MALHOTRA Vs. LIC HOUSING FINANCE LIMITED

JUDGEMENT

(1.) The petitioner has been convicted and sentenced to undergo simple imprisonment for a period of one year and to pay compensation of Rs.6,50,000.00 to the respondent for an offence having been committed under Sec. 138 of the Negotiable Instruments Act(for short the 'Act') by the learned Judicial Magistrate Ist Class, Court No.3, Shimla, on 11.06.2012/18.06.2012 which conviction and sentence was upheld by the learned Sessions Judge, (Forests), Shimla, on 03.01.2014, constraining him to file the present revision petition.

(2.) Briefly stated the facts of the case are that the respondent filed a complaint against the petitioner with the allegations that the petitioner had approached respondent- LIC Housing Finance Limited which was running its business of housing finance and the petitioner was granted house loan of Rs.6,50,000.00 for the construction of the house. The said loan was to be repaid by the petitioner in equal monthly installments within a period of 12 years. However, the petitioner was irregular in making the installments as was agreed by him and, therefore, in discharge of his liability issued a cheque of Rs.5,87,385.00 drawn at Bank of Maharashtra, Mandi. The cheque on presentation was dishonoured with the remarks "insufficiency of funds". Thereafter, respondent issued a legal notice demanding payment of the cheque amount, however, the petitioner despite receipt of the notice failed to make the payment.

(3.) The petitioner was summoned and notice of accusation was put to him to which he pleaded not guilty and claimed trial.