Judgment

Phukan, J.-Leave granted.

2. These two appeals are by the complainants against the judgment and order of the learned Single Judge of the High Court of Madhya Pradesh, Gwalior Bench passed in Misc. Crl. Case Nos. 636 and 637 of 1997. By the impugned judgment and order the High Court allowed the petitions filed under Section 482 Crl. P.C. and quashed the criminal proceedings namely case Nos. 172 and 1156 of 1995 pending before the Judicial Magistrate, First Class, Gwalior.

3. Respondent No. 1 a partnership firm, took a loan of over a crore of rupees from the appellant-bank and towards part re-payment of the above loan, issued three cheques dated 29.03.94, for Rs. 1 lakh, Rs. 2 lakhs and Rs. 39,50,000/-. All three cheques were presented to the bank for collection but received back by the appellant unpaid on 25.4.94 and 19.06.94 with the remarks “funds insufficient”. The appel­lant bank sent two registered notices dated 2.5.94 and 27.6.94 through the advocate and there was no dispute that the notices were received. All the cheques were again presented to the bank but returned with the same remarks namely “funds insufficient”. Thereafter, the appellant-bank approached the Judicial