2006 whereas the total period of each of the chits was 20 months. Further, the complainant No.1 participated in an auction in one of the chit transactions which took place in the month of June 2006, and became successful bidder, on consequence of which, the accused paid Rs.80,000/by way of cheques, one bearing No.444016 for Rs.39,000/- and the other bearing No.444017 for Rs.41,000/-, dated 11.07.2006, drawn on Karur Vysya Bank, R.P.Road Branch, Secunderabad, as assured. Further, the accused demanded the complainant No.1 to provide security for the amount. Thereby, the complainant No.1 issued a blank cheque in that context keeping in view his relationship with the accused which was filled with due contents later with dishonest intention. It is claimed that the complainant Nos.1 and 2 paid necessary instalments regularly and obtained necessary receipts. It is alleged that to make wrongful gain and with a dishonest intention, the accused threatened the complainant No.2 that he would present the blank cheque issued by the complainant No.1 as security and would encash the amount, if the complainant No.2 choose to demand the chit amount. It is admitted that the accused issued notice under Section 138 of the Act, but it is claimed that the complainant No.1 issued a reply denying the allegations made therein.
