Accused : Sri.R.Ramachandra, S/o Rangappa, R/at.No. 31, Shrinilaya, 2nd Floor, 7th Main, 3rd "A" Cross, Near Gangadareshwar Temple, Bhuvaneshwari Nagar, T.Dasarahalli, Bengaluru 560 057. { By Sri. Gujjarappa.C Advocate } Offence complained : U/S. 138 of N.I. Act., 2 C.C.22587/2018 Plea of accused : Pleaded not guilty Final Order : Accused is Acquitted Date of Order : 12042022 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"). 02. The factual matrix of the complaint is summarized as under; It is averred in the complaint that, the complainant and accused were colleagues in Pragati Auto Mation Pvt. Ltd., since 2000 and also good friends, but later the accused has resigned his post and left the company. Due to 3 C.C.22587/2018 his financial difficulties, the accused has borrowed hand loan of Rs.5,00,000/ from the complainant by cash. The complainant has arranged the said fund from his cobrother one by Venkatesha S. The accused has promised to repay the said loan amount within six months. In order to repay the said loan amount, the accused has issued a cheque bearing No.996825 dated 02.05.2018 for a sum of Rs.5,00,000/, drawn on State Bank of India, SME Branch, Peenya 2 nd Stage, Bengaluru 560 058 in favour of the complainant. The complainant has presented this cheque thrice on 04.05.2018, 19.05.2018 & 12.06.2018, the said cheque returned unpaid due to "Funds Insufficient" in the account of the drawer. Thereafter, on the request of the accused, the said cheque was again represented for encashment, but again the cheque was returned unpaid due to "Funds Insufficient" in the account of the drawer as per banker's endorsements dated 04.05.2018, 19.05.2018 & 12.06.2018,. On 4 C.C.22587/2018 06.07.2018, the demand notice was issued to the accused demanding for payment of the cheque amount, the same was delivered to the accused on 07.07.2018. In spite of service of notice, the accused has neither paid the cheque amount nor has given any reply. On these grounds, it is sought to convict the accused for the offence punishable under section 138 of NI Act and grant compensation as per section 357 of Code of Criminal Procedure. 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 2528 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 got exhibited seven documents at Ex.P.01 to 07. Having been made out 5 C.C.22587/2018 the prima facie case, the complaint has been registered in Register No. III and issued process against the accused. 04. In response to the summons, the accused put his appearance before the court through his counsel and filed bail application under section 436 of Code of Criminal Procedure, the accused has been enlarged on bail. The substance of accusation has been recorded and read over to the accused, he pleaded not guilty and intends to put forth his defense. On filing application by the complainant under section 145(1) of NI Act, sworn statement of the complainant has been treated as examination in