For the sake of convenience, the parties will be referred to as the complainants and the accused.

2. The complainants in all these cases are Firms carrying on business in Auto Finance and the accused had borrowed monies to the tune of Rs.1 Crore (Rupees One Crore only), for which, the accused had also mortgaged his property. Towards the discharge of the liability, the accused had issued cheques to the complainants, which, when presented by the complainants, were dishonoured on the ground that the drawer signature differs. The complainants issued the necessary statutory notice and thereafter, they launched 38 prosecutions against the accused under Section 138 of the Negotiable Instruments Act before the learned Judicial Magistrate No.1, Karur, challenging which, these 38 quash applications have been filed.

3. Heard the learned counsel for the accused.

4. The learned counsel for the accused submitted that the cheques were issued only as security and that the accused had already mortgaged his properties with the complainants and, therefore, the prosecution under Section 138 of the Negotiable Instruments Act cannot be maintained. He also submitted that the cheques were dishonoured