Anand Byrareddy, J.—Heard the learned Counsel for the appellant and the learned Counsel for the respondent.

2. The appellant was the complainant before the Trial Court, who had alleged an offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter referred to as ‘the NI Act’ for brevity).

The complaint having been contested, was dismissed. Hence the present appeal is filed.

3. It is the case of the appellant that the appellant and the respondent were good friends. Since the respondent was in need of money, he had raised a hand loan of

Rs. 2,00,000/- from the appellant, which was lent under two installments dated 25-6-2003 and 26-10-2003. The same was to be repaid on or before 1-10-2004. The same not having been paid on or before that date, a demand was made and therefore, the respondent had executed an agreement, whereby he had furnished his house as security for repayment of the loan amount and had granted permission to the appellant to take action towards recovery of the hand loan, in case the accused failed to repay the sum. Since there was default in repayment and on a demand being made, the respondent is said to have issued a cheque bearin