Hon'ble Judges/Coram:
S.B. Sinha and H.S. Bedi

JUDGMENT

S.B. Sinha, J.

1. Leave granted.

2. The impugned judgment is one of reversal of a judgment of acquittal passed by the learned Trial Judge in favour of the appellant.

3. Respondent herein allegedly, on diverse dates, advanced a sum of Rs. 3,16,000/- to the appellant who issued a cheque for the said amount on 18.12.1995. The said cheque was dishonoured on the ground of 'insufficient fund'. Allegedly, when the matter was brought to the notice of the appellant, he undertook to remit the amount on or before 30.01.1996. The cheque was again presented but the same was not encashed on the ground "payment stopped by the drawer".

4. On the aforementioned premise, a complaint petition was filed by the respondent herein against the appellant under Section 138 of the Negotiable Instruments Act (for short "the Act").

5. The complainant in support of its case led evidence to show that he had advanced various sums on the following terms:

On 31-1-94 a sum of Rs. One lakh; on 8-6-94, Rs. 86,000/-; on 12-6-94, Rs. 28,000/-; on 23-4-95, Rs. 50,000/- on 18-6-95, Rs. 40,000/- and on 7-8-95, Rs. 12,000/-.

6. Defence of the appellant, on the other hand, was that he had issued blank cheques for the purpose of purchase of spare parts, tyres, etc. in connection with the business of transport services run in the name of his brother. The blank cheques used to be returned by the sellers of spare parts, etc. when the amounts were paid. According to the appellant, the complainant lifted the impugned cheque book put in the bag and kept in his shop. Appellant in support of his case examined the Bank Manager of the Bank concerned.

7. The learned Trial Judge upon analyzing the materials brought on records inter alia held:

(i) The complainant himself who had not sufficient funds and used to borrow the same from his brothers, father and others failed to show that he had any financial capacity to advance such a huge amount.

(ii) As all the transactions were admittedly recorded by him in a diary which having not been produced, an adverse inference should be drawn.

(iii) The complainant failed to prove before the Court that there had been any