1. This application is filed to quash the proceedings initiated under Section 138 of the Negotiable Instruments Act, pending before the IX Metropolitan Magistrate, Saidapet, Chennai, in C.O. No. 6629 of 1997.

2.. The case of the complainant is that the complainant paid an advance of Rs. 35, 00, 000 to the accused. The accused had agreed that he will clear the advance amount of Rs. 35 lakhs within thirty days from the date of receipt of advance and also handed over a post dated cheque for a sum of Rs. 35 lakhs signed by the 2nd accused for and on behalf of the 1st accused. The transactions between the complainant and the accused came to an end in September 1996 and as on 17. 1997 towards the outstanding balance, the accused owe to the complainant along with interest is a sum of Rs. 39, 43, 405. When the cheque was presented for collection, it was returned on the ground that funds not arranged for. A notice issued also did not evoke any response except a payment of a sum of Rs.2, 00, 000. Hence, the complaint.

.3. Learned counsel for the petitioner submitted that the cheque in this case was not issued in discharge of any liability but was handed over only as a security a