This appeal is by the Accused before the trial
court, who suffered the judgment of conviction for the
offence punishable U/Sec.138 of NI Act passed by
XXXIV ACJM, Bengaluru, in C.C.No.58006/2023,
dtd.4.10.2025, challenging the validity of the
judgment.
2. For the sake of convenience the parties
hereinafter will be referred to with their ranking
assigned before the trial court.
3. The facts of the case:-
The Complainant initiated private complaint
under Section 200 of Cr.P.C., against the Accused,
alleging that the Complainant is a home maker and
her husband is a driver in school bus at Bengaluru.
The Accused is her family friend. The Accused was
acquainted to her by her husband as both of them
hail from the same locality in Andhra Pradesh. The
Accused is carrying on the business in hotel and
restaurant in and around Tirupathi. The Accused
requested a hand loan from her to met his immediate
requirement of his business. In the year 2018 August
3rd and 4th the Accused expressing his difficulty for
his hotel business borrowed a sum of Rs.10,00,000/-
from the Complainant through RTGS from the
Complainant’s (Cheque bearing No.63766 and 63767
each for Rs.5,00,000/-) banker with an assurance
that the amount would be paid back within 08
months as he would mobilize the funds in the
business. He also assured that he pays interest @
2% per month till repayment of the entire principal.
However, the Accused could not pay back the
principal amount within the said 08 months and was
paying the interest. Further stated that, in the month
of December, 2019 the Accused acknowledging the
payments agreed to repay the principal amount
sought some more time. Accordingly, on 6.12.2019
an agreement of hand loan was executed towards
the payment by the Accused and issued 02 Cheques
dtd.28.4.2023 for Rs.5,00,000/- each with an option
to present the same for payment whenever he
instructs to encash for principal amount. Again on
22.2.2020 another agreement, renewing the earlier
one was executed by the Accused thereby reaffirmed
the Cheques drawn in favour of Complainant,
payable at his banker State Bank of India, Leela
Mahal Central branch, Tirupathi, Andhra Pradesh
assuring that the amount can be encashed on
presenting the same. It is further submitted that the
Accused was irregular in payment of interest and
ultimately stopped the payment of interest in the
month of Mach 2022. After many persuasions
ultimately in the month of April 2023 he asked the
Complainant to present the said Cheques and
encash the principal amount and he would settle the
interest at latter stage. When the Complainant
presented the said Cheques through her banker for
encashment, the same were dishonoured for the
reason “funds insufficient” on 29.4.2023. Thereafter,
the Complainant has got issued demand notice on
dtd.5.5.2023 by RPAD, calling upon the Accused to
pay the Cheques amount within 15 days from the
date of receipt of notice and the same was served on
the Accused on 18.5.2023 and 15.5.2023. Inspite of
receipt of the legal notice, the Accused has neither
paid the Cheques amount nor replied the notice and
thereby, the Appellant has committed the offense
punishable under Sec.138 of Negotiable Instruments
Act. Thereafter the Complainant approached the Trial
Court for appropriate legal action against the
Accused.
