( 1 ) THIS appeal is filed against the judgment dated 27-3-1998 in c. C. No. 118 of 1996 on the file of the iv Additional Judicial First Class Magistrate, kakinada, wherein the respondent-accused was acquitted under Section 255 (1) of the code of Criminal Procedure of the offence under Section 138 of the Negotiable instruments Act, 1881 (for short the Act ).

( 2 ) THE case of the complainant, in brief, is as under:

( 3 ) ON 15-11-1994, the respondent- accused borrowed an amount of Rs. 75,000. 00 from the complainant-P. W. l for the purpose of investment in his business and executed a promissory note (original of Ex. Pl ). On demand, the respondent-accused gave a cheque bearing No. 846763, dated 22-8-1995 (Ex. P2) for Rs. 50,000. 00 drawn on State Bank of Hyderabad, APSP Quarters, Kakianda towards part payment of the amount due under Ex. P l. P. W. I presented Ex. P2 for encashment through Andhra Bank, Srinagar branch, Kakinada on 22-1-1996. The same was returned as dishonoured for want of sufficient funds, through Ex. P3 memo, dated 23-1-1996. P. W. I was informed about the dishonour of cheque on 27-1-1996. Thereafter, P. W. I got issued Ex. P4- legal notice on 29-