Sri M. Rajavalse, Advocate for Respondent.

JUDGMENT

The appellant-company was supplying the products on credit to dealers. The respondent-accused is one of the dealers of the appellant. It is said that the cheque, Ex. P. 1 issue by the accused for discharge of the credit liability is dishonoured. The statutory legal notice is issued in time. The prosecution is launched within the period of limitation envisaged under Section 138 of the Negotiable Instruments Act, 1881.

2. The admitted facts disclose that the accused issued a signed blank cheque in question to the appellant with a liberty to fill up the other necessary particulars. The appellant has filled up the amount due as Rs. 1,92,406/-. But in the cross-examination of P.W. 1, it is admitted that the company has issued circular instructions to all its dealers to deposit signed blank cheques as a security for credit supply. The object of such insistence is to see that if there is a default on the part of the dealer, the company would fill up the cheque showing the amount due as on that day payable by the dealer as a measure for effective recovery of dues.

3. The very scheme of procedure adopted shows that the cheques are not issued i

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