The accused is a manufacturer of condiments and sweet meats. The complainant was taking supplies from the accused and had given caution deposit. The contract was terminated. The accused issued cheque Ex. P. 1 for Rs. 2,37,411.78 towards repayment of caution deposit. On presentation cheque is dishonoured. The intimation of dishonour is received on 23-3-1996 as per Ex. P. 2. The complainant issued statutory notice and thereafter filed a private complaint.

2. Per contra, the accused contends that the accounts between the complainant-accused is not settled, cheque was issued tentatively with a clear mutual understanding that the cheque should be presented only after settlement of accounts. The cheque is issued only as a security and not towards discharge of the debt or other legal liability. It is further contended that the cheque is a blank cheque and in breach of the terms, the complainant has made premature presentation of the cheque. Therefore, argued that the accused cannot be held guilty of the offence punishable under Section 138 of the Negotiable Instruments Act, 1881.

3. Ex. D. 2 is relied on by the accused to contend that the accounts are yet to be settled and the chequ