1. This appeal is directed against the judgment of acquittal dated 02.03.2010 passed by the Prl.Civil Judge (Jr.Dn) and JMFC, Mulbagal in C.C.No.41/2006 acquitting the accused for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter referred to as 'the NI Act', for brevity). The same is challenged in this appeal urging various grounds.

2. The factual matrix of the appeal are as under: The complainant and the accused being the native of same Hobli were having good relationship. The accused approached the complainant to give a loan of Rs.50,000/- to dig borewell and install pumpset. After several demands and requests of complainant, issued a cheque for Rs.50,000/- for Canara Bank, Mulbagal bearing No.441315 dated 30.6.1999. Further as per the instructions of the accused, complainant presented the cheque for encashment. But the cheque was dishonoured for want of insufficient funds and the bank issued an endorsement to that effect. Subsequently, the complainant got issued legal notice through registered post and certificate of posting, but the same was refused by accused. To escape liability accused filed a false complaint before the po