S.P. Kukday, J. —Rule. Rule made returnable forthwith. With the consent of respective parties, matter is taken up for hearing.

2. At the outset, Mr. S.S. Choudhary, learned Counsel for the applicant stipulates that the challenge is to the legality of the order of issuance of process and, therefore, quashing of the proceedings is not pressed at this stage.

3. Respondent No. 2 Mr. Vyas Dhanvarsha Sahakari Bank Ltd., Yaval, had advanced loan of Rs. 3,00,000 in the category of “hypothecation cash credit loan”. Entire loan of Rs. 3,00,000 was withdrawn by the applicant on 20th October, 2000. The loan was to be repaid on or before 20th September, 2001. As repayment was not done, applicant issued a cheque drawn on Janata Sahakari Bank Ltd., Jalgaon. The cheque was presented for encashment but was dishonoured. After service of notice as applicant failed to make repayment within stipulated period. Respondent No. 2 initiated proceedings in respect of offence punishable under Section 138 of the Negotiable Instruments Act and Section 420 of the Indian Penal Code, in the Court of Judicial Magistrate, First Class, Yaval.

4. After complaint was filed, the matter was argued on the point of