This appeal is filed under Section 378(4) of the Code of Criminal Procedure aggrieved by the Judgment dated 18.8.1997 in C.C. No.165 of 1997 on the file of the Court of XV Metropolitan Magistrate, Hyderabad, wherein the complaint filed by the appellant herein to punish the accused under Section 138 of the Negotiable Instruments Act, 1881 (for short `the Act') was rejected and the accused was acquitted under Section 255(1) of the Code of Criminal Procedure.

2. The case of the complainant, in brief, is as under:

3. The complainant was dealing with financial business and the accused obtained a loan of Rs.30,000/- from it. Since the loan amount was not paid within a specific period, on demand, the accused issued cheques bearing Nos.0175036 and 0175038 for Rs.1,000/. and for Rs.34.927/- respectively on 30.11.1996 drawn on the Andhra Pradesh State Co-operative Bank Limited, Hyderabad. The cheques were presented for collection on 7.12.1996, but they were returned with endorsement "insufficient funds'. On this, the complainant demanded for payment of amount through a notice dated 13.12.1996 with a demand to pay the said amount of Rs.35,927/- along with Rs.500/- towards legal fee w