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1999 Supreme(SC) 276

M.B.SHAH, K.T.THOMAS
Saketh India LTD. – Appellant
Versus
India Securities LTD. – Respondent


Judgement Key Points

How to compute the one-month period for filing a complaint under Section 142 of the Negotiable Instruments Act when the cause of action arises on a specific date? What is the rule for excluding the first day and including the last day in computing a period of limitation as applied to Section 12(1)/(2) of the Limitation Act and Section 9 of the General Clauses Act? What is the effect of excluding the day from which the period is to be reckoned in counting periods for time-limited statutory actions under Indian law, as applied in the context of dishonor of cheques under Section 138/142?

Key Points: - The complaint filing period for NI Act S.138/142 is computed by excluding the day on which the cause of action arises, per the rule discussed (paras referencing 6-9, 12-14) (!) (!) (!) . - The calculating rule is aligned with Section 12(1)/(2) Limitation Act and Section 9 of the General Clauses Act, which exclude the first day and include the last day in a period (!) (!) . - The cause of action for filing a complaint arises from the day after the 15-day notice period expires, and that day is excluded for counting the one-month period (illustrated in the cited case) (!) (!) . - The court held that in the given facts, filing on 15.11.1995 was within time because the one-month period started after 15.10.1995 (excluded) (!) . - The decision affirms that the rule is well established and consistent with English and Indian statutory interpretation for computing limitation periods (!) (!) . - The Appeals were dismissed on the basis of the correct computation of time (!) . - The decision cites Haru Das Gupta v. State of West Bengal as precedent for the exclusion rule in date-based time computations (!) . - The rule is applicable to complaints under Section 142 in addition to Section 138 proceedings, where cognizance requires filing within time (!) (!) . - The general principle of time computation under limitation laws is to exclude the first day and include the last day in the relevant period (!) . - The relevant statutory sections involved: NI Act Sections 138, 142; General Clauses Act S.9; Limitation Act S.12(1),(2) (!) (!) .

How to compute the one-month period for filing a complaint under Section 142 of the Negotiable Instruments Act when the cause of action arises on a specific date?

What is the rule for excluding the first day and including the last day in computing a period of limitation as applied to Section 12(1)/(2) of the Limitation Act and Section 9 of the General Clauses Act?

What is the effect of excluding the day from which the period is to be reckoned in counting periods for time-limited statutory actions under Indian law, as applied in the context of dishonor of cheques under Section 138/142?


Judgment

Shah, J.-Leave granted.

2. The short question involved in these appeals is whether the com­plaint filed by the respondent under Section 138 of the Negotiable Instruments Act is within or beyond time as it is contended that it is not filed within one month from the date on which the cause of action arose under clause (c) of the proviso to Section 138 of the Negotiable Instruments Act (hereinafter referred to as “the Act”).

3. In the present case, cheques dated 15th and 16th March, 1995 issued by the appellants bounced when presented for encashment as per the bank endorsement. Notices were served on the accused on 29th Septem­ber, 1995. As per Section 138(c) accused were required to make payment of the said amount of money within 15 days. The accused failed to pay the said amount, hence the cause of action for filing the complaint arose from 15th October, 1995. Complaints were filed on 15th November, 1995. Therefore, it is contended that complaints were filed beyond time. Accused petitioners approached the High Court by filing petition under Section 482 of the Criminal Procedure Code for quashing and setting aside the process issued by the XI Additional Chief Metropoli­tan Magi





















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