This is a Complainant's appeal against the acquittal of the accused under Section 138 of the Negotiable Instruments Act, 1881 (Act, for short) by Judgment dated 3-5-2006 of the learned J.M.F.C., Canacona.

2. The Complainant and the accused were known to each other from student days and both are contractors.

3. The case of the Complainant is that he had given a friendly loan to the accused in the sum of Rs.4,00,000/- and towards discharge of his liability of repayment of the said loan, the accused had issued a cheque bearing No.007187 dated 25-8-2005 drawn on Canacona Urban Co-operative Credit Society Ltd. but when the said cheque was presented by him for encashment with the Citizen Cooperative Bank Ltd. the same was returned with memorandum of the same date with endorsement that the funds were insufficient.

The Complainant therefore sent a legal notice dated 9-9-2005 calling upon the accused to pay the amount due on the said cheque with interest at the rate of 18% per year within fifteen days from the receipt of the said notice which the accused received on 12-9-2005 but did not reply or comply with the same. The Complainant therefore filed the complaint on 11-10-2005 and e