Madras High Court
Hon'ble M. Chockalingam, J.
Crl. Appeal No. 102 of 2005 and Crl M.P. No. 860 of 2005
Decided on 7.2.2005
Poppys Spinning Mills (P) Ltd.
versus
C. Visalakshi and another
Negotiable Instruments Act - Private Complaint under Sections 138 and 142 - Notice found to be defective - Supreme Court decision on imperfect notice - Appeal dismissed
Fact of the Case:
The appellant filed a private complaint under Sections 138 and 142 of the Negotiable Instruments Act, alleging that the respondent issued a cheque which was returned dishonoured. The trial Court found the respondent guilty, but the lower appellate Court reversed the judgment and acquitted the accused.
Finding of the Court:
The Court found that the notice issued prior to the proceedings was defective as it did not clearly demand payment of the cheque amount. Citing a Supreme Court decision, the Court held that the imperfect notice rendered the complaint not maintainable, and the accused could not be found guilty based on the defective notice.
Issues: Validity of the notice under Section 138 of the Negotiable Instruments Act, correctness of the lower appellate Court's decision in reversing the trial Court's judgment.
Ratio Decidendi: The notice issued prior to the proceedings must clearly demand payment of the cheque amount to be valid under Section 138 of the Negotiable Instruments Act. A defective notice renders the complaint not maintainable, and the accused cannot be found guilty based on the defective notice.
Final Decision: The appeal was dismissed, and the judgment of the lower appellate Court was sustained.
M. Chockalingam, J. : This appeal has arisen from the judgment of the learned Additional District Judge (Fast Track Court No. V), Coimbatore at Tirupur, reversing the judgment of the trial Court namely the Court of the Judicial Magistrate No.1, Tirupur, made in C.C.No.112 of 2002.
2. Heard the learned Counsel for the appellant. This Court is of the considered opinion that the materials available are suffice to pass an order of dismissal in this appeal, and no notice is even necessary to the respondents, since it does not require an admission.
3. It was a private complaint filed by the appellant herein under Sections 138 and 142 of the Negotiable Instruments Act, alleging that the first respondent/accused issued a cheque to him to the tune of Rs. 2,32,099/-. When the same was placed for encashment, it was returned dishonoured. A statutory notice was issued. The cause of action has arisen, since the demand made thereat was not met by the first respondent/ accused, and thus, he lodged the private complaint before the lower Court. The trial Court took cognizance of the same and issued summons, pursuant to which she appeared. On trial, the trial Court has found her guilty and awarded two years Rigorous Imprisonment along with a compensation of Rs. 2,32,099/-. Aggrieved, the accused took it on appeal, which was taken up by the lower appellate forum in C. A. No. 390 of 2004. On enquiry, the lower appellate Court reversed the judgment of the trial Court and acquitted the accused. Hence, this appeal before this Court.
4. The learned Counsel for the appellant, while addressing this Court, would submit that the trial Court on consideration of the factual and legal positions, has found her guilty; but, it has been erroneously reversed by the lower appellate forum; that apart from that, the trial Court has found that the statutory notice is valid; but, the lower appellate Court has erroneously found it defective; that the trial Court has applied the judicial decisions of the Apex Court properly; but, the same has not been properly looked into by the lower appellate Court; that on the contrary, the lower appellate Court has applied the decisions which were not applicable to the present facts of the case, and under the circumstances, the judgment of the lower appellate Court has got to be set aside.
5. All the materials available are carefully perused, and the contentions put forth by the learned Counsel for the appellant and recorded above are also considered by this Court. After the same, this Court is of the considered opinion that this appeal carries no merits.
6. The case of the appellant before-the trial Court was that there was a cheque issued by the first respondent/ accused on 22.11.2000, for a sum of Rs. 2,32,099/-, and when the same was placed for encashment, it was returned dishonoured, and hence, following a statutory notice, he lodged the private complaint. The only ground on which the judgment of the trial Court, finding her guilty, was set aside by the lower appellate Court, was that the pre-proceedings notice was found to be a defective one. A copy of the notice is also placed in the hands of the Court, wherein the amount is found as Rs. 2,39,099/-; but, it was not so. When P.W. 1 was cross-examined, he has categorically admitted.
It is pertinent to point out that when the complaint was filed before the lower Court, the defect that was found in the notice, was rectified, and it Poppys Spinning Mills (P) Ltd. versus C. Visalakshi
was placed before that Court, but without rectifying the defect what was found in the notice issued to the opposite party. But, this would not satisfy the legal requirements. The legislative intent of a notice in a proceeding under Section 138 of the Negotiable Instruments Act is, making the opposite party put on notice as to the demand found therein; and that he should meet the demand within the stipulated time, and if not, the prosecution has got to be launched. But, in the instant case, the n
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