This is Complainant's appeal against the acquittal of the accused under Section 138 of the Negotiable Instruments Act. 1881 by virtue of Judgment dated 24-3-2006 of the learned J.M.F.C., Panaji.

2. There is hardly any dispute as to the facts.

3. M/s. Balaji Agencies was a proprietorship concern of Vijay M. S. Usgaonkar till about 1998 with whom the accused who is the Chairman and Managing Director of M/s. Bagi Packages Ltd. had dealings.

4. Thereafter, the said Vijay along with his brother Venkatesh formed a Company and registered under the Indian Companies Act, 1956. Both were the distributors for Indian Petro Chemicals Company Ltd. and the accused had dealings with both of them. The accused placed an order for supply of certain material sent by letter dated 22-9-1997 addressed to M/s. Balaji Agencies and along with the said letter sent the subject cheque bearing No.294434, not over Rs.5,00,000/- as token of security. The terms agreed upon were also noted in the said letter, and. inter alia, it was stipulated that the said Balaji Agencies would give a rotating credit limit of Rs.5,00,000/- against the deposit of the said undated cheque for Rs.5,00,000/-. The payment wo