This is an appeal filed by the original complainant-appellant challenging the order of acquittal passed by the XXII Additional City Municipal Magistrate, Bangalore and XXIV Additional Small Causes Judge, Bangalore City, dated 6-4-2005 in CC No. 36103 of 2002 acquitting the respondent-accused of the offence punishable under Section 138 of the Negotiable Instruments Act, 1881.

2. It is the case of the appellant-complainant that it is a Co-operative Society and it had disbursed a loan of Rs. 25,000/- to the respondent accused on 5-2-2001. The respondent-accused failed to discharge the loan and pay the installments due as and when they fell due. After due persuasion, the respondent-accused issued a cheque Ex. P. 2 in favour of the complainant-Co-operative Society for a sum of Rs. 25,000/- dated 12-2-2002 towards the discharge of liability. The cheque so issued was presented by the complainant-Co-operative Society through its banker KSC Apex Bank Limited, Magadi Road, Bangalore on 18-6-2002. Ex. P.3 is the endorsement issued by the Bank returning the cheque with an endorsement "funds insufficient". The said endorsement is dated 19-6-2002. On the return of the cheque without realisat