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MADRAS HIGH COURT
Pratap Singh, J.
M/s. A.B. Steels & another- Petitioners/accused
versus
M/s. Coramandal Steel Products - Respondent/Complainant
Cri. Original Petition No. 9600 of 1991
Decided on 9.10.1991

Advocates:
Counsel for the parties:
For the Petitioner: T. Munirathina Naidu

Headnote:(i) Negotiable Instruments Act, 1881 – Section, 138 - Accused/petitioner issued cheque dt.11.12.1990 - Cheque presented by complainant 11.12.1990 Cheque presented by complainant on 17.12.1990 for encashment and it was returned unpaid due to lack of sufficient funds on 18.12.1990 - Notice issued by complainant on 27.12.1990 calling upon petitioner to pay amount of dishonored cheque - Registered cover notice received back by complainant on 19.1.1991 with endorsement "not found" Immediately thereafter complainantment to business place of accused to take notice which accused refused - Notice was addressed to proper address Such facts, if proved, would make out that accused had constructive service of notice to attract penal provision. (Para 4)

       (ii) Negotiable Instruments Act, 1881 - Section 138 - Service of notice - Cheque returned unpaid on 18.12.1990 - Notice of demand sent by complainant by registered post on 27.12.1990 which was returned to complainant with endorsement "not found" on 19.1.1991 Complainant then went to business place of accused to deliver him notice - It is not a new notice but is to be tacked to notice dt. 27.12.1990 when registered notice was sent which was sent within 15 days. (Para 5)

       Result: Petition dismissed.

       

ORDER

Pratap Singh, J.- The accused in C.C. 1830 of 1991 on the file of II Metropolitan Magistrate, ignore, Madras, have filed this petition under Section 482, Criminal Procedure Code, praying to call for the records in the aforesaid case and quash the same.

2. The respondent has filed a private complaint against the petitioner under Section 138, Negotiable Instruments Act. The allegations in it are briefly as follows:

The first accused is a firm represented by its partner who is incharge of it viz., the second accused. In respect of the goods sold and delivered, the second accused issued a cheque on 11.12.1990 for Rs. 70,000/-. The second accused is incharge of the business. The complainant presented the cheque on 17.12.1990 for encashment. It was returned with an endorsement refer to drawer due to lack of sufficient funds and notice of dishonour was received by the complainant on 18.12.1990. He issued a notice through lawyer, dated 27.12.1990, calling upon the accused to pay the amount due under the dishonoured cheque. In order to escape from the consequences of Section 138, Negotiable Instruments Act and to circumvent the same, the accused managed to return the notice with an endorsement "not found". The registered letter was received back by the complainant on 19.1,1991. Immediately he went to the business place of the, accused and asked him to take notice which he refused. The complainant had sent notice by registered post with proper address by paying proper charges and so it must be deemed that service of notice was effected on the accused. The cause of action was arose on 3.2.1991 viz., 15 days after the postal endorsement, dated 19.1.1991. Hence the complaint.

3. Mr. T. Munirathina Naidu, the learned counsel appearing for the petitioners, would contend that there was no service of notice on the accused and hence the question of payment of amount within 15 days of service of notice does not arise in this case and offence under Section 138, Negotiable Instruments Act is not complete and on that ground, the complaint is liable to be quashed.

4. The .complainant states that the second accused issued cheque on 11.12.1990 that it was presented on 17.12.1990 and it was returned dishonoured with endorsement "refer to drawer" and notice of dishonour as received on 18.12.1990. It is further alleged that the complainant sent notice through lawyer on 27.12.1990 calling upon the accused to pay the amount due under the dishonoured cheque. Then it is alleged as follows:

"The complainant states that in order to circumvent and escape from the attraction of mischief under Section 138 of Negotiable Instruments Act and man- a aged to return the above said notice with an endorsement 'not found' .The Registered Letter was received back to the complainant on 19.1.1991. Immediately after the return of the said notice, the complainant went to the business place the of the accused where in he is still doing business and asked him to take the notice, which he refused. The Complainant has sent the notice by registered post with proper address and by paying postal charges, so it is demand that the service of the notice is effected on the accused. "

The above allegations would make it clear that the accused was quite aware of the sending of the notice and with deliberate intention of avoiding the consequences of Section 138 of Negotiable Instruments Act, had managed to return the aforesaid notice that it was addressed to the proper address. It is also alleged that the complainant went to the business place of the accused and asked him to take the notice which he refused. The above, if proved, would clear amount to constructive service of notice. It is idle to contend that even in such circumstances and in the face of such positive allegations that there was no service of notice and hence offence under Section 138, of Negotiable Instruments Act is not made out. The - 2 aforesaid allegations would go out to show that accused was quite aware of th






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