Accused : Sri.Shivalingegowda.D, S/o Late.Doddegowda, Age 65 years, R/at.No.254/1, 7th Cross, Pipeline Road, Behind Reliance Fresh, Mallasandra, 2 C.C.33149/2021 T.Dasarahalli, Bengaluru 560 057. { By Sri.S.Mallikarjuna Swamy Advocate } Offence complained : U/S. 138 of N.I. Act., Plea of accused : Pleaded not guilty Final Order : Accused is Acquitted Date of Order : 03012024 JUDGMENT The present complaint is filed under section 2(d) read with section 200 of code of criminal procedure against the accused seeking to punish him for the offence punishable under section 138 of the Negotiable Instruments Act ( in short referred as "N.I. Act"). 3 C.C.33149/2021 02. The factual matrix of the complaint is summarized as under; It is averred in the complaint that, the complainant and accused are close friends and family friends since for the past 20 years and in order to meet out his financial problems, the accused has approached the complainant in the month of September 2019 for a financial assistance of Rs.8,00,000/. Accordingly, the complainant has accumulated and lent a sum of Rs.6,70,000/ to the accused and the accused had agreed to repay the said amount within six months with interest at the rate of bank interest. It is further averred that, after the expiry of six months, the accused again approached the complainant and requested additional amount of Rs.1,00,000/. Accordingly, in the month of January 2020, the complainant has lent additional amount of Rs.1,00,000/. In all, the accused has assured to repay the entire hand 4 C.C.33149/2021 loan of Rs.7,70,000/ within six months on obtaining house loan from the bank. It is further alleged that, after passing the period of Covid19, the accused has issued two cheques i.e., cheque bearing No.401389 dated 31.03.2021 for a sum of Rs.6,70,000/ and cheque bearing No.401388 dated 31.03.2021 for a sum of Rs.1,00,000/, both the cheques were drawn on Statate Bank of India, Buvaneshwarinagar Branch, Bengaluru in favour of the complainant. The complainant has presented the said cheques for encashment through his banker, but they returned unpaid with banker's endorsement dated 01.07.2021 as "Funds Insufficient". On 09.07.2021, demand notice was issued to the accused by RPAD. The demand notice issued by RPAD has been duly served on accused and the accused has given reply on 15.07.2021, but has failed to pay the amount covered under the cheques. On these grounds, it is sought to punish the for 5 C.C.33149/2021 the offence punishable under section 138 of NI Act and impose upon him the fine double of the cheque amount and out of which, the complainant shall be awarded compensation as per section 357 of Code of Criminal Procedure along with interest at the rate of 24% per annum from the date of issuance of cheques. 03. On presentation of complaint, this court has verified the averments of complaint along with records and thereby had taken cognizance for the offence punishable under section 138 of NI Act. Thereby, as per the verdict of the Hon'ble Apex court reported in AIR 2014 SC 1983 in the case of Indian Bank Association and others V/s Union of India and others, the sworn statement of the complainant has been recorded as PW.1 and go