The central legal point established in the judgment is that the appellate court has full power to review, re-appreciate, and reconsider the evidence upon which the order of acquittal is founded, without limitation, restriction, or condition.

M. NIRMAL KUMAR, J.

1. This appeal is filed against the judgment dated 11.10.2007 made in C.A.No.16 of 2007 passed by the learned IV Additional Sessions Judge, Chennai after reversing the trial Court judgment dated 22.12.2006 made in C.C.No.6248 of 2002 rendered by the learned XVI Metropolitan Magistrate, George Town, Chennai for the offence under Section 138 of the Negotiable Instruments Act, convicting the respondent/accused and sentenced to undergo three months Simple Imprisonment and to pay a fine sum of Rs. 2,50,000/- [Rupees two lakh fifty thousand only] as compensation to the complainant within one month in default to undergo one month Simple Imprisonment. The lower appellate Court set aside the judgment of the trial Court and acquitted the respondent/accused, against which, the above appeal has been filed by the appellant.

2. The gist of the case is that, the appellant had filed a private complaint for offence under Section 138 of the Negotiable Instrument Act, against the respondent/accused herein. The appellant is a Cement Manufacturing Company and the respondent is one of the dealer of the appellant company used to purchase cements from the appellant company on credit basis. In such transaction, the respondent is liable to pay a sum of Rs. 3,19,128.97/- towards discharge of the said liability in part. The cheque in issue in the above case was issued by the respondent/accused.

3. The respondent had issued a cheque in favour of the complainant vide Cheque bearing No.767996, dated 10.08.2002 drawn on the State Bank of Travancore, Vijayapuram Branch, Tiurpur for a sum of Rs. 2,50,000/- [Rupees two lakh fifty thousand only]. The appellant had deposited the cheque with their bankers viz., Standard Chartered Bank, Grindlays Bank Limited, Chennai for realization and the same was returned as unpaid on 26.08.2002 for the reason "Exceeds Arrangement". Thereafter, the appellant had issued a statutory notice to the respondent on 16.09.2002, calling upon the respondent to pay the above cheque amount. The said notice was returned unserved. Thereafter, the case under Section 138 of the Negotiable Instruments Act had been filed against the respondent before the trail Court.

4. During the trial, Mr.E.R.Chandrasekaran represented the appellant company and examined as PW.1 and Ex.P1 to Ex.P9 were marked by him and on the side of the respondent, the respondent had examined himself as DW.1 and Mr.Kalyanaraman, Branch Manager, the State Bank of Travancore, Vijayapuram, Tirupur Branch was examined as DW.2 and Ex.D1 to Ex.D5 were marked. Ex.P1 and Ex.P2 are resolution of Board of Directors and authorization letter to PW.1, Ex.P3, Statement of Accounts, Ex.P4, cheque for Rs. 2,50,000/- issued by the respondent, Ex.P5 and Ex.P6 are the Return Memo and Debit advice, Ex.P7 is the statutory notice, Ex.P8 is the postal return cover and Ex.P9 is the letter of the respondent, accordingly, the Debt to the tune of Rs. 3,25,000/-.

5. The respondent examined as DW.1 and marked Ex.D1, which is the receipt dated 14.10.1997 given on his appointment as a dealer of the appellant company, Ex.D2 is the counterfoil of cheque book, Ex.D3 is the Pass Book, Ex.D4 is the statement of accounts and Ex.D5 is the acknowledgement letter dated 15.11.1997 given by one Mr.Ramakrishnan, Sales Officer of the appellant company for receipt of the cheque bearing No.767996 (Ex.P4).

6. It is admitted, that there was a business transaction between the appellant and the respondent. According to Ex.P3 and Ex.D4, the dispute is with regard to the entries shown therein like Transport Charges, Annual Trade Discount and other incentives, which the respondent is entitled has not been paid by the appellant.

7. The contention of the learned counsel for the appellant is that the signature in Ex.P4 cheque is not disputed by the respondent and as per Ex.P9, the respondent admits his due of Rs. 3,25,000/- as on 06.12.2001 and hence, the cheque Ex.P4 dated 10.08.2002 had been issued by the re