( 1 ) THE National Small Scale Industries Corporation Limited (in short called nsic) which is a Government of India Undertaking, with a view to promote small scale industries, supplies machinery to small entrepreneurs. One of the beneficiaries of the said scheme was Shri Takdir Singh who is respondent before us. On 8. 5. 1991 the NSIC supplied to the respondent three lathe machines and on 31st May, 1991 the parties entered into a Hire Purchase Agreement. The payment towards the hire charges for the said machines was to be made by way of thirteen half- yearly instalments. The first instalment, as per the terms of the Agreement, was for Rs. 17,113/- and it was payable on or before Ist July, 1992. The remaining twelve instalments were for Rs. 10,550/- each and were payable after every six months. The respondent, however, committed default in making the payment towards instalments due. In fact, he made no payment on due dates against any of the instalments. He had issued three cheques dated 28. 2. 1995, 30. 6. 1996 and 30. 8. 1997 for a sum of rs. 3000/-,rs. 1000/- and Rs. 1000/- respectively. All these three cheques on presentation were dishonoured on account of insuf