- (1.) Leave granted. We have heard learned counsel for the parties at length.
(2.) The appellant herein had filed a complaint under Section 138 of the Negotiable Instruments Act, 1881, (hereinafter referred to as 'Act'), inter alia, alleging therien that it had entered into a contract with the respondent herein as per which the appellant was to supply some material for the completion of certain project which was undertaken by the respondent. It was further stated that the respondent was supposed to make payment in terms of the said agreement as under: - "Payment 1. Rs. 25,000.00 at the time of release of Purchase Order 2. Rs. 25,000.00 at the time of Board Level 3. Rs. 25,000.00 at the time of Road Triais. 4. Rs. 50,000.00 at the time of supply of units. 5. Balance Rs. 50,000.00 plus the taxes applicable within 45 days from the date of supply of units. We hereby agree by the above payment terms signed by the petitioner and respondent."
(3.) According to the appellant, it had made the requisite supplies and pursuant thereto, the respondent had issued two cheques dated 20.11.2003 and 30.11.2003 for Rs.25,000/ - each. Those cheques were returned dishonoured on presentation with the remarks 'Insufficient Funds'. When the respondent was informed about the same, he issued cheques for Rs. 50,000/ - and 75,000/ -, which was the amount due for the work undertaken and completed by the appellant for the respondent, as under: - (1) Cheque No. 795553 dated 22.11.2004 for Rs.50,000/ - drawn on Canara Bank. (2) Cheque No. 795554 dated 15.12.2004 for Rs.75,000/ - drawn on Canara Bank. ;