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ANDHRA PRADESH HIGH COURT
G. Radha Krishna Rao
& lmmaneni Panduranga Rao, JJ.
M/s. Syed Rasool & Sons
& Ors.- Petitioners
versus
M/s. Aildas & Co.
& Ors. - Respondents
Criminal Petition Nos. 689
and 967 of 1992
Decided on 30.9.1992

Counsel for the parties:
For the Petitioners:M/s. P.S. Narayana, B. Nalin Kumar and K. Jithendra Babu, Advocates.
For the 1st Respondent:M/s. S. Rama Murty Reddy, V. Pattabhi and P.V. Ranga Reddy, Advocates.
For the 2nd Respondent: Public Prosecutor.

IMPORTANT POINT
The second prosecution of cheque within period of validity in valid u/s. 138 of Negotiable Instruments Act. But the complaint has to be filed only once and that too taking into account limitation on the result of subsequent last presentment of cheque.

Headnote:(i) Negotiable Instruments Act, 1881, Sections 138 and 142 - Complaint for offence of dishonour of cheque - Scheme of Act in Ch. XVIII - Whether more than one causes of action on the same cheque can be created? (No)

       Held: From the scheme of the provisions in Chapter XVII of the Act two features loom large. First is that more than one cause of action on the same cheque is not contemplated or envisaged. Second is, institution of prosecution cannot be made after one month of the cause of action. If more than one cause of action on the same cheque can be created, its consequence would be that the same drawer of the cheque can be prosecuted and even convicted again and again on the strength of the same cheque. Legislature cannot be imputed with the intention to subject a drawer of a cheque to repeated prosecutions and convictions on the strength of one cheque. (Para 22)

       (ii) Negotiable Instruments Act, 1881 Sections 138 and 142- Complaint for dishonour of cheque - Notice of demand before complaint - Whether a condition precedent? (Yes) (Para 23)

       (iii) Negotiable Instruments, Act, 1881 - Sections 138 and 142 - Complaint for dishonour of cheque - Cheque returned with remarks "Refer to drawer" or "account closed" or "Not arranged" - Cognizance taken. Whether by itself bad? (No, evidence can be led to prove its meaning as insufficiency of funds or exceeding, arrangement contract) (Para 23)

       (iv) Negotiable Instruments Act, 1881 Sections 138 and 142 – Complaint for dishonour of cheque on, ground of "refer to drawer". Meaning of the term in Banking practice Cheque is returned for want of funds in the account of drawer of cheque. (Para 23)

       (v) Negotiable Instruments Act, 1881 Sections 138 and 142 - Complaint for dishonour of cheque - Whether cheque can be presented any number of times during its validity? (Yes) - But complaint can be filed only once. (Para 24)

       (vi) Negotiable Instruments Act, 1881 Sections 138 and 142. Complaint for dishonour of cheque - Limitation of 30 days from cause of action - Cheque presented many time during validity - Whether limitation be reckoned from first dishonour alone? (No, the last date of dishonour alone has alone to the taken into consideration for filing complaint) (Para 25)

       (vii) Interpretation of statutes. Section 138(a) of Negotiable Instruments Act, 1881. Cheque to be presented during validity period - Restriction as to number of times it can be presented - Whether can be read into the said clause? (No) (Paras 23 to 25)

       (viii) Negotiable Instruments Act, 1881-Sections 138 and 142- Complaint for dishonour of cheque - Complaint need not disclose defence theory in reply to demand notice. (Para 27) Quashing of complaint u/s. 482 Cr. P.C. only when primafacie is not made out on the allegations in complaint. (Para 28)

       

JUDGMENT

G. Radhakrishna Rao, J. - These two Criminal Petitions are filed under sections 482 of the Criminal. Procedure Code for quashing C.C. No. 143 of 1992 on the file of the XI Metropolitan Magistrate,

Secunderabad, and C.C. No. 481 of 1991, on the file of the II Additional Munsif- Magistrate, Tirupathi.

2. The accused in C.C. No. 143 of 1992, on the file of the XI Metropolitan Magistrate, Secunderabad, are the petitioners in Criminal Petition No. 689 of 1992 while the accused in C.C: No. 481 of 1991, on the file of the II. Additional Munsif Magistrate, Tirupathi, is the petitioner in Criminal Petition No. 967 of 1992. Respondent No. 1 in both the Criminal Petitions are the complainants in C.C. No. 143 of 1992 and C.C. No. 481 of 1991, respectively.

3. These petitions have come up for hearing before this Bench on a reference made by our learned brother, Iyyapur Panduranga Rao, J. in Criminal Petition No. 967 of 1992 and by one of us (i.e.. G. Radhakrishn'a Rao, J.) in Criminal Petition No. 689 of 1992.

4. The complaints, in both the Calendar Cases, have been filed under section 138 read with section 142 of the Negotiable Instruments Act, 1881 (Act No. 26 of 1881), here in after referred to as "the Act".

5. As the point of law involved in both the Criminal Petitions is one and the same, they have been heard together and a common order is being passed.

6. A brief reference to the facts in both the petitions is necessary for deciding the points of law involved therein.

7. The case, 'Set up by the 1st respondent in criminal Petition No. 967 of 1992. (who is the complainant in C.C. 481 of 1991), is briefly as follows:- The petitioner (accused) issued a cheque, bearing to. 2271604 for Rs. 33,750/- on October 23, 1990 in favour of the first respondent on M.G. Road Branch of Indian Bank, Bangalore. The said cheque was presented for collection but the same was bounced. Consequently, the first respondent (complainant) contacted the petitioner on, telephone, whereupon he was advised to represent the said cheque on or after February 25, 1991. Accordingly the 1st respondent represented the cheque on February 28,1991 but, once again, the same was bounced with the endorsement "referred to drawer" and the same was accordingly intimated to the 1st respondent on March 11, 1991 by registered post. Thereupon, the 1st respondent issued a notice on March 14, 1991 calling upon the petitioner to pay the amount covered by the cheque in question. Since there was, no reply from the petitioner, the 1st respondent filed C.C. No. 481 of 1991, under section 138 of the Negotiable Instruments Act and Section 420 of the Indian Penal Code against the petitioner accused.

8. As already stated, Criminal. Petition No. 967 of 1992 has been filed by the petitioner accused under section 482 of the Criminal Procedure Code alleging that even if taking all the allegations at their face value as true, they do not constitute an offence within the meaning of section 138 of the Act. It is contended on behalf of the petitioner that the endorsement "refer to drawer" does not necessarily indicate insufficiency of fund alone and in such circumstances it cannot be said that an offence under section 138 of the Act has been made out by the 1st respondent. Reliance was placed on the decisions reported in M/s. Union Road Ways (P) Ltd. & another v. M/s. Shah Ramanlal Stesh Kumar & another1 and Hunasikathimath v. State of Karnataka2.

9. It is further contended that when once the cheque was not honoured, there cannot be a second cause of action relating to the same cheque and the proceedings under section 138 of the Act on the endorsement "refer to drawer" are not sustainable. It is next contended that the forwarding of the complaint under section 156(3) of the Criminal Procedure Code to the Police is illegal and without jurisdiction for the reason that the payee has to file a private complaint only under section 200 of the Criminal Procedure Code where an offence under section 138 of the Neg

































































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