JUDGMENT: - Appellant filed the complaint under Section 138 of the Negotiable Instruments Act (the Act) against respondents 1 to 3 alleging that second respondent, as the director of the first respondent, entered into a bill discounting agreement dated 07.08.1995 with it and executed a demand promissory note for Rs.20,15,197=50 in its favour on 07.08.1995 as collateral security for discharging its liability under the aforesaid discounting bill discounting agreement and issued a cheque for Rs.20,15,197=50 dated 06.11.1995, drawn on Vijaya Bank, M.G. Road, Secunderabad in its favour signed by the second respondent on behalf of the first respondent towards discharge of the liability of the first respondent to the appellant. As per the instructions of the second respondent, that cheque was presented for payment in November 1995. But it was returned with an endorsement 'exceeds arrangement'. When that fact was intimated to him second respondent requested the appellant to present the cheque in the bank again on 13.12.1995 and accordingly, that cheque was presented for payment on 13.12.1995, but it was again dishonoured on the same ground. Again, at the request of t

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