The unsuccessful complainant Peddireddy Sanjeeva Reddy filed the appeal assailing the acquittal judgment, dated 21.06.2007, passed by the learned II Additional Judicial Magistrate of First Class, Machilipatnam, in the private complaint case vide C.C.No.785 of 2005 for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (for brevity, 'N.I. Act').

2. The case of the appellant/complainant is that the accused Mallavarapu Chandra Reddy along with his wife borrowed an amount of Rs.8,00,000/- from him for business purpose by executing Ex.P.1 promissory note agreeing to repay the same with interest at 18% per annum. After repeated demands, in discharge of said debt, the accused issued Ex.P.2 cheque bearing No.156076, dated 25.08.2005 for a sum of Rs.8,54,000/- drawn on Canara Bank, Chennai Branch. When the said cheque was presented, it was dishonoured with an endorsement funds insufficient. The complainant got issued a legal notice demanding to pay the cheque amount and the same was returned on 04.10.2005 with an endorsement addressee continuously absent. Hence the complaint.

3. After recording sworn statement of the complainant, the case was taken cogniz