JUDGMENT :

SANJAY KISHAN KAUL, J.

Factual Background:

1. M/s Rainbow Papers Limited (company incorporated and registered under the Companies Act, 1956), of which Ajay Kumar Radheyshyam Goenka, the Appellant before us, was the Promoter and Managing Director, sought loans from a public financial institution, Tourism Finance Corporation of India Limited, the Respondent before us, to fulfil its various corporate requirements. The proposal of the company was considered by the Respondent and approval was granted for a Term Loan of Rs. 30.00 crores. In pursuance to the approval, a Loan Agreement was executed on 27.03.2012 in New Delhi.

2. In order to satisfy its obligations under the Agreement, the Accused company issued post-dated cheque of Rs. 25,47,945/-bearing cheque number 090656 dated 15.02.2016, drawn on Indian Overseas Bank, Kalupur Circle Branch, Railway Pura, Ahmedabad, towards the payment of one of the instalments. On the cheque being presented to the bankers of the Respondent i.e., HDFC Bank Limited, Nehru Place Branch, New Delhi, the cheque was returned vide Memo dated 07.04.2016 for the reason “Account Closed”.

3. On 19.04.2016, a demand-cum-legal notice under Section 138 of Neg