JUDGMENT:- The appellant-complainant prosecuted the respondent-accused for committing the offence punishable under S.138 of the N.I. Act. The accused had entrusted contract work to the complainant and towards remuneration the cheque Ex.P3 is issued for Rs.20,000/-. The cheque is dishonoured on presentation. Statutory notice is issued and private complaint is filed.

2. It is the defence contention that the cheque is issued only as a security and not for repayment of the debt. The trial Court upheld the contention and dismissed the complaint. Hence, the appeal.

3. The distinction sought to be made between issuance of cheque for repayment of debt and issuance of cheque as a security for repayment of debt is illusory in law. Any cheque whether issued towards repayment of debt or liability as a security if dishonoured, the drawer of a cheque incurs liability of prosecution under S.138 of the N.I. Act. Unlike the other securities, the cheque, even if it is issued as security for repayment it is very much a negotiable instrument and with implied instruction for deferred presentation on future date, if the debt is unpaid as per the agreed terms. The cheque upon the default of the terms if

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