The appellant initiated prosecution for the offence punishable under Section 138 of the Negotiable Instruments Act against the respondent. The respondent acquitted. Therefore this appeal.

2. According to the complainant he is a dealer in two wheelers manufactured by Bajaj. Accused was also a dealer in another place. There was business dealing between the two. The complainant had given vehicles for sale to the accused. The accused committed default in repayment. On 1.3.1995 there was a settlement of account between the two. There upon the accused drew a cheque for an amount of Rs.7,97,918.95 towards the amount due as found at the time of settlement. The cheque was presented to the bankers. It bounced. Statutory notice was issued. There was no response. Hence prosecution was initiated.

3. The accused took up a contention that there was no such settlement of account. The cheque was given only as a security for the transaction between the parties. Therefore, the cheque was not supported by any consideration. It was only a blank cheque.

The court below examined the evidence on record and found that Ext.10 the ledger did not disclose that on 1.3.1995 there was a settlement betwe