Mr. K.C. Puri, J.: - This is an appeal directed by the complainant against the judgment dated 23.3.2007 passed by Shri Karnail Singh, Additional Sessions Judge, Jalandhar vide which the learned Additional Sessions Judge, accepted the appeal and dismissed the complaint under Section 138 of the Negotiable Instruments Act ( in short – NI Act) filed by the complainant-appellant after setting aside the order dated 2.12.2005 passed by Shri G.S.Dhillon, Judicial Magistrate Ist Class, Jalandhar, who convicted and sentenced the accused-respondent.

2. Brief facts of the case are that the complainant and the accused had friendly relations and the complainant gave Rs.3 lacs to the accused and in order to discharge his legal liability, accused-respondent issued cheque dated 9.6.2003 for a sum of Rs.3lacs drawn on Punjab & Sind Bank, Tanda Urma Branch, Hoshiarpur. The said cheque on presentation was dishonoured being insufficient funds. Thereafter, legal notice was served upon the accused calling him to make the payment of amount of the said cheque within statutory period but of no use, hence the complaint.

3. After recording preliminary evidence, the accused-respondent was ordered to be