IN THE HIGH COURT OF JUDICATURE AT BOMBAY CRIMINAL APPELLATE JURISDICTION CRIMINAL APPLICATION NO.8570 OF 2005 IN CRIMINAL APPEAL NO. OF 2005 CFL Capital Financial Services Ltd.,) Formerly CEAT Financial Services Ltd.)..Applicant Versus M/s.Boltmaster (India) Pvt.Ltd., & Ors).Respondents ---- Mr.D’Lima i/by D’Lima & Associates for the applicant. Mr.Shirish Gupte, Sr.Advocate i/by R.D.Suvarna for respondent nos.1, 2, & 3. Mrs.R.M.Gadhvi APP for the State. ---- Coram : R.S.Mohite,J Coram : R.S.Mohite,J Coram : R.S.Mohite,J Date : 12.9.2008. PC 1. This is an application for leave to appeal. The accused have been acquitted for an offence punishable under Section 138 of Negotiable Instruments Act. On perusal of the impugned judgment and order, I find that the same is based upon cogent and acceptable reasons. The facts indicate that between 22.1.1998 and 2.4.1998 the accused M/s.Boltmaster (India) Pvt.Ltd., drew five hundies for total amount of Rs.20,43,850/-. The hundies were accepted by M/s.Precision Fastners Ltd., and the due dates for payment were between 18.4.1998 and 1.7.1998. It appears that at the time when the hundies were drawn the accused also issued : 2 : 5 post dated cheques to cover the eventuality of the acceptors not paying on the due dates. These post dated cheques were therefore, dated on the due dates i.e. between 18.4.1998 to 1.7.1998. It appears that these cheques were dishonoured and after following due procedure, proceedings under Section 138 of Negotiable Instruments Act came to be filed. 2. It further appears that by a separate transaction with the acceptor i.e. M/s.Precision Fastner Ltd., the complainants were also to receive an additional amount of Rs.15,68,803/-. The fact that this amount was due is reflected in the letter of M/s.Precision Fastners Ltd., which was issued to the complainant. This amount was in addition to the amount of Rs.20,43,850/-. It further appears that interest was also payable on the amount of Rs.20,43,850/- and after taking into account the interest also, the total amount due and payable was Rs.47,81,565/- as on 14.2.2003 to the complainant. 3. During the pendency of this proceeding, by a Memorandum of Understanding dated 14.2.2003 entered into between the complainant and M/s.Precision Fastners Limited, it was recorded that the total amount due as on 10.2.2003 was Rs.47,81,547/-. However, the complainant waived its right to receive an amount of Rs.11,68,894/- and agreed to receive amount of Rs.36,12,653/- from M/s.Precision Fastners : 3 : Ltd., It is not disputed that this amount has actually been paid by M/s.Precision Fastners Ltd., On perusal of the aforesaid facts it becomes clear that what was agreed between the complainant and M/s.Precision Fastners Ltd., was to receive an amount of Rs.20,43,850/- (minus the interest and other charges which were waived) and Rs.15,68,803/- which were the other dues receivable by the complainant from M/s.Precision Fastners Ltd., The act on the part of the complainant in agreeing to receive only the principal amount by waiving their right to receive the interest on amount of Rs.20,43,850/- was a voluntary act and that would result in the discharge of the liability of M/s.Precision Fastners Ltd., who was the acceptor in respect of the hundies. Once this liability has been settled with M/s.Precision Fastners Ltd., the liability of the drawer of the hundies and in respect of the consideration payable under cheques in question would also stand affected and extinguished. In my view, the view taken is a possible view. Hence, I am not inclined to interfere in an appeal against acquittal. Therefore, leave refused. Consequently, appeal papers to be filed. (R.S.Mohite,J) (R.S.Mohite,J) (R.S.Mohite,J)