Mr. T.P.S. Mann, J.:- This appeal is directed against the judgment dated May 07, 2004 passed by Judicial Magistrate 1st Class, Samana, whereby the complaint filed by the appellant against the responsdent, was dismissed and the respondent acquitted of the charge under Section 138 of the Negotiable Instruments Act.

2. In his complaint, the appellant had averred that he was running a business in the name and style of C.P.Finance Company, Narwana Road, Patran, Tehsil Samana, District Patiala. The respondent took a loan of Rs.30,000/- on 22.8.2000 and Rs.70,000/- on 18.9.2000 from the appellant and for repayment of the loan issued cheque No. 580111 dated 1.3.2001 for Rs.1,00,000/- in favour of C.P.Finance Company, drawn on Punjab National Bank, Branch Uchana, District Jind. The appellant presented the said cheque to his banker State Bank of Patiala, Branch Patran on 27.6.2001 which was sent to State Bank of Patiala, Branch Uchana, from where it was further sent to Punjab National Bank, Branch Uchana for encashment. However, vide memo. dated 2.7.2001 Punjab National Bank, Branch Uchana dishonoured the cheque with the remarks “not arranged for” in the account of the respondent and sent the memo. alongwith the cheque to State Bank of Patiala, Branch Uchana from where it was further sent on 3.7.2001 to State Bank of Patiala, Branch Patran and finally vide memo. dated 7.7.2001 State Bank of Patiala, Branch Patran returned the cheque alongwith memo. dated 2.7.2001 of Punjab National Bank, Branch Uchana to the appellant. The appellant approached the respondent and told him about the dishonouring of the cheque. The respondent was requested to make the payment with interest but he failed to do so. The appellant then sent a legal notice dated 9.7.2001 to the respondent through registered post as well as UPC calling upon him to make the payment of Rs.1,00,000/- within fifteen days from the receipt of the notice and the notices were duly delivered and served upon the respondent. However, he failed to make the payment of Rs.1,00,000/- with interest. According to the appellant, the respondent had cheated and deceived him knowingly and willfully. Accordingly, he filed a complaint under Section 138 of the Negotiable Instruments Act and Section 420 IPC.

3. After perusing the preliminary evidence examined by the appellant, the trial Court summoned the respondent under Section 138 of the Negotiable Instruments Act. The respondent put in appearance and was, thereafter, served a notice of accusation under Section 138 of the Negotiable Instruments Act to which he pleaded not guilty and claimed trial.

4. In support of his case, the appellant stepped into the witness box as CW1 besides examining Pankaj Kumar, Cashier-cum-Clerk, State Bank of Patiala, Branch Uchana as CW2 and Ram Chander, Clerk-cum- Cashier, Punjab National Bank, Branch Uchana as CW3.

5. The respondent was, thereafter, examined under Section 313 Cr.P.C. wherein he denied all the incriminating evidence appearing against him. He stated that he had taken loan of Rs.20,000/- from the appellant on 26.1.2000 and the appellant had obtained a blank cheque as security. He returned the loan amount alongwith interest to the appellant in installments on 26.2.2000, 26.3.2000, 26.4.2000 and 21.10.2000. However, taking undue advantage of the blank cheque, the appellant filled the same for an amount of Rs.1,00,000/- to file a false complaint. In defence he examined Dr. Inderjit Singh, Hand Writing and Finger Prints Expert as DW1.

6. The trial Court held that the respondent had taken a loan of Rs.20,000/- from the appellant on 26.1.2000 and at that time the appellant had taken a blank cheque from the respondent as security. The loan amount was returned by the respondent in installments. Therefore, as on 22.8.2000 there was no debt or liability of the respondent of Rs.1,00,000/- and, thus, question of issuance of cheque of Rs.1,00,000/- did not arise. Rather, the said cheque had only been given by t