This Criminal Appeal has been filed by the Complainant aggrieved by the order passed in Crl.No.197 of 2007, wherein the Appellate Court had set aside the order of conviction and sentence passed by the learned Judicial Magistrate No.VII, Coimbatore for an offence under Section 138 Negotiable Instruments Act.

2. The brief facts that are necessary for the purpose of disposing the appeal are ; The husband of the accused is said to have borrowed a sum of Rs.3,75,000/- [Rupees Three Lakhs Seventy Five thousand Only] from the complainant on 04.04.2004. Towards the said loan, the husband of the accused is said to have executed a demand promissory note on the same date for a sum of Rs.4,75,000/- [Rupees Four Lakhs Seventy Five Thousand Only] in favour of the complainant. Since this amount was not repaid in spite of demands and requests, in order to discharge the liability of the husband, the wife who has been arrayed as an accused is said to have issued a cheque bearing No.088032 dated 22.11.2005 for a sum of Rs.3,75,000/- [Rupees Three Lakhs Seventy Five thousand Only]. When this cheque was deposited by the complainant, the cheque was returned with an endorsement ''account closed'' on 24.11.2005. Thereafter, the complainant issued a legal notice dated 03.12.2005 calling upon the accused to pay the value of cheque within 15 days and the accused person in spite of the receipt of the notice neither gave a reply nor paid the cheque amount to the complainant. Consequently, the complainant has filed the present complaint for an offence punishable under Section 138 and 142 of the Negotiable Instruments Act.

3. The complainant in order to substantiate his case has examined himself and 5 documents were marked on his side. The accused had examined 2 witnesses one being the Manager of the Bank who was examined as DW-1, and her husband was examined as DW-2 and the passbook was marked as a document on the side of the accused person. That apart 3 documents were summoned from the Bank and were marked through DW-1.

4. The Trial Court on appreciation of the materials available on record was pleased to pass an order convicting the accused person for an offence under Section 138 of the Negotiable Instruments Act and imposed a sentence of one year Simple Imprisonment.

5. The accused aggrieved by this order filed an appeal in Crl.A.No.197 of 2007. The Appellate Court on consideration of the oral and documentary evidence and on consideration of the submissions made on the either side, by its order dated 06.06.2008 was pleased to set aside the order of conviction and sentence passed by the Trial Court. Aggrieved by the same, the complainant has filed the present Criminal Appeal.

6. The learned counsel for the appellant made the following submissions:

a. The version of the defense was that this cheque was given towards security for a chit that was conducted by the complainant in which the accused husband had joined. The accused husband had made a bid on 13.01.2003, and with that the entire transaction came to an end and therefore there is no necessity for the husband of the accused to again approach the complainant seeking for a loan in the year 2004 and there is no necessity for the accused to have issued a cheque to the complainant towards discharging the liability of the husband. This version was not taken as a defense at the earliest point of time by way of sending a reply notice to the statutory notice issued by the complainant.

b. If the defense taken by accused is even presumed to be true, the entire chit transaction came to an end in 2003 and thereafter there was an independent loan transaction by the husband of the accused with the complainant wherein he borrowed a sum of Rs.3,75,000/- [Rupees Three Lakhs Seventy Five thousand Only]. Towards discharging this loan, the accused has issued a cheque to the complainant. Therefore, there is no connection between the earlier chit transaction and the subsequent loan transaction.

c. Legally enforceable de