Issue : Users cannot see the checked out files in the folder/ library
Checked with the user for the url and browsed the site and yes was not able to see any files
Asked the user if he had checked in the files for the first time as it was nothing to do with the permissions of the user or any setting
He said he might have so asked him to check in the file once and then check out .
He did and there were all the files visible to the user
Resolution : Check in the files atleast once for the user to see the files in the folder / Library